Articles Article Archive
2010
August 2010
Investing for the Long Term
By: Don Edwards, CFA
There are a lot of different ways to invest money. Some people like to gamble and go for quick riches while others want to make sure their money is very safe. Some like stocks while others like bonds. I have heard people swear that the only good investment is gold and other people swear that farm ground is the answer. Blue chip stocks, tech stocks, emerging market stocks, real estate, high yield bonds, and certificates of deposit; there are many options when it comes to investing your money. To some, the many different options lead them to do nothing. Others endlessly chase one hot investment after another, never achieving much but always on the lookout for the next big thing.
To Roth or Not to Roth?
By: Ginger Scott, ARPS
Starting in 2010, more people can convert their Traditional IRAs and eligible workplace plan
account assets to Roth IRAs, and for 2010 conversions only, spread the tax cost of the conversion over two years. This is a result of a provision of the Tax Increase Prevention and Reconciliation Act of 2005 (TIRPA). Specifically, the Act does the following:
- Remove income limitations on conversions to Roth IRAs
- Allows those married but filing separately to convert
- Allows taxpayers to defer their tax liability on amounts converted in 2010, paying amount equally over tax years 2011 and 2012
- This provision does not impact direct rollovers form Roth 401(k) and Roth 403 (b) to Roth IRAs which have always been allowed.
While you should not rush into a Roth IRA conversion, there may be several instances where a conversion will leave you in a better financial situation over the long term. When considering if you should convert to a Roth IRA, there are two main subjects to think about; the effect on your finances during the Roth conversion and the effect at retirement.
Market Commentary
By: Wabash Capital Investment Committee
A year ago the media was referring to improving economic numbers as “green shoots” in what was hopefully an end to a deep recession set off by the credit crisis. Economic reports showed the economy was starting to grow again. By the end of last year, positive growth in GDP did indeed suggest that things were on the mend.
Fast forward to summer 2010, and these
same economic numbers have become less positive, causing worry that a double-dip
recession is upon us. Housing starts, existing home sales, employment data,
retail sales, and the Conference Board’s Leading Economic Index (see chart)
illustrate an economy that is struggling to gain momentum.
May 2010
A Matter of
Trust
By: Don Edwards, CFA
I recently attended the CFA Institute’s Annual Conference in Boston. Once a year, investment professionals from all over the world gather to hear discussions from a host of world renowned speakers that range from Noble Laureates to thought provoking authors covering a wide range of industry issues. A common theme from this year’s conference involved the loss of trust by the investing public toward the financial industry in the aftermath of the recent global financial crisis. While we will hopefully cover a wide range of investment related topics in this newsletter in the years to come, I wanted to talk in this first issue about the matter of trust and how we as an industry can do a better job in the future than we have done in the past.
Retirement --- How
Much Is Enough?
By: Ginger Scott, ARPS
When it comes to your savings needs in retirement, there are some key questions you should be asking yourself.
Market Commentary
By: Wabash Capital Investment Committee
On Thursday, the Dow Jones Industrial Average entered “correction” territory for the first time since March 2009 market lows. A correction is a decline from market highs of at least 10% and the current retracement is from a market peak of 11,205 hit on April 26th. The Greek debt crisis and the lack of immediate response by European Union leadership started the decline nearly a month ago. This week, festering concerns about Greece, news that initial jobless claims increased and the decline of the leading economic indicator for the first time since March 2009 only caused renewed selling to recent lows.