Saturday, October 20, 2012
World's oldest bank Monte dei Paschi di Siena cut to 'junk' by Moody's
The world's oldest bank has been cut to "junk" by Moody's, as the rating agency warned that there was a "material probability" that the lender may need another cash injection from the Italian government.
Friday, October 19, 2012
An Investment Puzzle: How to Put Your Assets in the Right Places
Filed under: Investing
Obviously, what you invest in can mean the difference between getting rich and losing your shirt. But where you invest can be even more important -- especially if you end up picking winners.
Most people have several different ways to put their money to work. If you have a 401(k) or other retirement plan at work, you can have deductions pulled directly out of your paycheck and put toward your long-term savings. Opening an IRA can give you many of the same benefits with even more flexibility. For goals other than retirement, regular brokerage or mutual fund accounts let you have complete control over your money, and you can take it out or move it without any penalties.
But if you have a diversified investment portfolio with a variety of assets -- such as stocks, mutual funds, bank CDs or other fixed-income investments, and alternative investments -- you may not spend much time figuring out where each investment fits best across all the accounts you have. As a result, you could be missing out on big tax savings.
What should go where?
The right answer depends on your individual situation, but some general rules of thumb apply to many people.
1. Interest-bearing assets belong in IRAs. If you have bank CDs, bonds, or other investments that produce interest income, the best place for them is in a Traditional IRA. The reason is that these assets benefit the most from the tax savings that IRAs provide. Unlike income from stock dividends and capital gains, interest income gets taxed at your higher ordinary rate. Given how low the rates on these investments are right now anyway, the last thing you can afford is to lose a big share of that meager income to the tax man.
2. Save your best ideas for a Roth IRA. A Roth IRA is a special type of retirement account that let's you withdraw all the income it generates tax-free. Therefore, you should put the investments that have the best chance of soaring in value inside a Roth.
Sponsored Links
High-growth stocks fit that bill. Think about some of the blockbuster gainers over the years -- stocks like priceline.com (PCLN) and Green Mountain Coffee Roasters (GMCR) that have made a bundle for their longtime shareholders. If you'd put those investments in a Roth IRA, you could've enjoyed all those profits without paying a penny in tax. That's why Roth IRAs are so valuable -- but since you can only contribute limited amounts to a Roth, you have to use your Roth money wisely.
3. Invest long-term in taxable accounts. Even though stocks give you the best chance to make significant money over the long haul, that doesn't mean that they aren't suitable for taxable accounts. Until you actually sell a stock you own, you don't pay tax on any gains. So plenty of people are still sitting on big gains from stocks like Amazon.com (AMZN) and Apple (AAPL) that they've held for years, letting their profits ride -- and they haven't had to pay a dime in tax along the way.
Moreover, as long as you hold onto investments for more than a year, any gains qualify for a tax break. Currently, the maximum tax rate for long-term capital gains is 15%, compared to up to 35% for regular income. So putting stocks and stock mutual funds or ETFs in taxable accounts can be a smart idea -- especially when you can't afford to lock up that money until you retire.
Think Smart
Figuring out what investments to buy may seem hard enough without worrying about which account to use to buy them. But in your constant fight with the IRS, it can make a huge difference -- and it's worth the effort.
For more on smart tax moves:
- 2012 Tax Changes: What You Need to Know
- The Real Reason to Adjust Your Withholding
- Legally Dodge the Tax Man in Retirement
Motley Fool contributor Dan Caplinger learned a lot of tax lessons the hard way. You can follow him on Twitter here. He doesn't own shares of the companies mentioned in this article. The Motley Fool owns shares of Amazon.com and Apple. Motley Fool newsletter services have recommended buying shares of Amazon.com, priceline.com, Green Mountain, and Apple, as well as creating a lurking gator position in Green Mountain and a bull call spread position in Apple.
NEXT:
Get info on stocks mentioned in this article:
Money and the News
A Bill Moyers Essay.
Source: http://feedproxy.google.com/~r/bmjvodcast/~3/jAvi-as14EE/profile2.html
A Democratic house divided.
Bill Moyers interviews Berkeley Law professors Christopher Edley, Jr. and Maria Echaveste - he's for Obama and she's for Clinton. They met working in the Clinton administration and now, having been married for nine years, Edley and Echaveste are both advising their respective candidates. Edley serves as dean and professor of law of UC Berkeley's Boalt Hall School of Law, where Echaveste is a lecturer in residence.
Source: http://feedproxy.google.com/~r/bmjvodcast/~3/MXw5jaae4PA/profile2.html
Thursday, October 18, 2012
Sam Tanenhaus
Digging deep into the roots and evolution of the American conservative movement, Sam Tanenhaus talks with Bill Moyers about why he believes that conservatism is dead and how it might yet come back to life. Tanenhaus is the editor of both THE NEW YORK TIMES BOOK REVIEW and the Week in Review section of the TIMES.
Source: http://feedproxy.google.com/~r/bmjvodcast/~3/Xytor7FPdPs/watch.html
Facing America's Energy Crisis
Faced with the increasing global demand for oil and the threat of climate change, experts say that America needs a new energy policy - but what are our options? Bill Moyers sits down with analysts Jean Johnson and Scott Bittle to discuss how we can power America's future.
Source: http://feedproxy.google.com/~r/bmjvodcast/~3/5yRHYvBoKxw/profile2.html
Bringing Annuities into 401k's
In the past, traditional pensions offered Americans guaranteed income throughout their retirement. Unfortunately, in more recent years, that guarantee has waned drastically. Instead, the average retirement plan must focus on investment accounts that you must manage on your own.
But is there good news on the horizon? Might we soon see a shift back to the old ways?
If regulations recently proposed by the federal government are any indication, the answer might very well be yes. These regulations, if accepted, would simplify the way in which annuities and other types of steady income can be added to existing 401k plans and IRAs. When you look at the current state of retirement and what these changes could mean to many retirees, it isn't difficult to see why the government is taking these steps.
Current Retirement Plans are Insufficient
One of the biggest issues facing retirees is trying to save enough money to live on throughout their retirement. With the average lifespan at an all-time high, citizens need to plan for more years of life than their ancestors ever did. Even an extra ten years of retirement planning can put quite a strain on a person's financial portfolio.
Many women are in an even worse spot. The average lifespan of a woman is higher than a man's, which means they will need to save for more years than their male counterparts. If that wasn't bad enough, women often have considerably lower retirement savings because they often spend less time earning full-time wages than men. This is often due to family and home obligations, which means women have often sacrificed their own well-being for the betterment of their loved ones.
New Proposals Tackle Longevity Risk
Many retirees are unsure how to plan for their future, because it's impossible to know how long they may live. The average lifespan of a man is 84, whereas it's 86 for a woman. Reaching these ages is becoming increasingly common. It isn't unusual for at least one spouse to live into his or her 90's. Even though you may have a nice chunk of money squirreled away in your retirement accounts, it's difficult for a person to know how much he or she should spend each year in order to make the savings last. This is especially true if they are in good health and may very well surpass the average lifespan. Many retirees in this situation believe they should only withdraw four percent of their savings each year, but some are unsure if that will be enough when added to Social Security.
Predictable Income
The best way to combat the above issues is to help retirees gain a stable income that they can count on. One way to do this is to utilize an annuity that is offered in conjunction with a 401k or IRA plan. This will allow retirement accounts to be pooled together, which means that the normal four percent withdrawal rate mentioned above will switch to something more along the lines of six or seven percent, determined by the type of annuity and the interest rate. The suggested regulations would make attaining this increased, steady income much easier.
Longevity Insurance
This is another option that the federal government is trying to improve. Depending on the insurance offered, the income doesn't begin until you're much older, like into your 80's. It is designed to assist people with a steady income past the point of the average lifespan. 401k plans and IRAs cannot offer this type of longevity due to their required minimum distribution rules.
Source: http://firstsecurityfinancialshow.com/blog/bid/151325/Bringing-Annuities-into-401k-s
Wednesday, October 17, 2012
Tomorrow’s Conservation Leaders Should Come from Energy Industry, Too
(Washington, DC) Today’s conservation leaders are starting to retire – who will fill their seats? The National Conservation Leadership Institute is calling for industry associated with natural resources to nominate their “rising stars” or individuals with high potential to be considered for acceptance as a Fellow for its 2008-2009 leadership development program.
The Institute is [...]
The Institute is [...]
Source: http://www.alternative-energy-news.info/press/conservation-leaders-energy-industry/
Seized Pirate Costumes Rendered Decidedly Scarier Due To High Levels Of Lead
Attention, Halloween lovers: While you might want to be perceived as dangerous this Halloween, there are some costumes that are so dangerous they’re actually harmful to your health. Shipments of pirate costumes coming from China were recently seized by authorities because they contained high levels of lead. The better to sink you with when you walk the plank, perhaps, but … [More]
Tuesday, October 16, 2012
Conservative Movement Woes, I
Conservatives Mickey Edwards and Ross Douthat discuss why they believe their movement has gone off track during the last eight years and what it means for the Republican Party. Douthat is senior editor at The Atlantic Monthly and co-author of Grand New Party, and Mickey Edwards is a former Republican Congressman and author of Reclaiming Conservatism.
Source: http://feedproxy.google.com/~r/bmjvodcast/~3/uAEL78jEyh4/profile.html
Weekend Warriors No More
BILL MOYERS JOURNAL gives viewers an intimate look at how deployments of National Guard troops to Iraq affect the state Governors' ability to swiftly respond to domestic disaster at home and impact the families left behind. Traveling to New Jersey, the Journal follows families preparing for the deployment of nearly half of New Jersey's National Guard to Iraq.
Source: http://feedproxy.google.com/~r/bmjvodcast/~3/GnBz2_rOoA0/profile.html
Judgey McJudgeypants
A couple of weeks ago, my oldest son and I were sitting on the back deck reading – me an investing book, him an article on personal finance from maybe the Globe and Mail or the Financial Post.
He was horrified at the spending habits of the person profiled in the article he was reading. Here’s [...]
He was horrified at the spending habits of the person profiled in the article he was reading. Here’s [...]
Monday, October 15, 2012
The Real Radical Is Romney, Not Ryan
Steven Rattner, New York Times
Mitt Romney, moderate. That earnestly sought post-debate public image contrasts starkly with Mr. Romney’s actual positions on many issues, especially the future trajectory of government spending.Clinging tightly to a studied vagueness when pressed for unpopular specifics, Mr. Romney has put forward a budget framework that would not eviscerate Medicare and Social Security, as is commonly believed, but would slash everything else that’s not defense.
Mitt Romney, moderate. That earnestly sought post-debate public image contrasts starkly with Mr. Romney’s actual positions on many issues, especially the future trajectory of government spending.Clinging tightly to a studied vagueness when pressed for unpopular specifics, Mr. Romney has put forward a budget framework that would not eviscerate Medicare and Social Security, as is commonly believed, but would slash everything else that’s not defense.
Source: http://www.realclearpolitics.com/2012/10/15/the_real_radical_is_romney_not_ryan_293064.html
NYT Excerpt: Offshore Banking In Belize
In his New York Times column, Adam Davidson describes setting up an offshore company — and discovering that it just takes a little money and less effort.
Viewer Mail
Responses to previous JOURNAL segments.
Source: http://feedproxy.google.com/~r/bmjvodcast/~3/6FYY97u1qrA/watch3.html
Sunday, October 14, 2012
Time again for Thomas Paine?
On the 200th anniversary of Thomas Paine's death, Bill Moyers sits down with THOMAS PAINE AND THE PROMISE OF AMERICA author Harvey J. Kaye and NATIONAL REVIEW senior editor Richard Brookhiser, author of WHAT WOULD THE FOUNDERS DO?
Source: http://feedproxy.google.com/~r/bmjvodcast/~3/dNzgaTp6pW8/profile2.html
Humanitarian of the Year Christina Galitsky on finding solutions to environmental problems
Christina Galitsky is Technology Review's 2006 Humanitarian of the Year and one of this year's TR35. The Lawrence Berkeley Lab scientist employs her training in chemical engineering to find solutions to environmental problems in the U.S. and abroad--particularly in poor countries such as Sudan and Bangladesh. She spoke to us recently about how seeing her innovations in action inspires her and what kinds of problems she hopes to work on in the future.
Source: http://www.technologyreview.com/blog/VideoPosts.aspx?id=17412
Saturday, October 13, 2012
Web Exclusive: Glenn Greenwald
Bill Moyers conducts a Web exclusive interview with Glenn Greenwald, about Afghanistan, government secrecy, the economy and his challenge to the editorial staff of THE WASHINGTON POST to justify their argument that the U.S. should borrow money for war but not for health care.
Source: http://feedproxy.google.com/~r/bmjvodcast/~3/zyVOD0J2PW8/profile3.html
ING Direct Lags the Competition
In its early years ING Direct was a pioneer in the high-interest savings accounts space offering an interest rate that was far and away better than any of the banks. But for many years now, the best rates can be obtained not at ING Direct but at one of its new competitors. Take high-interest savings [...]
ING Direct Lags the Competition is brought to you by Canadian Capitalist -- Helping you to invest & prosper.
Source: http://feedproxy.google.com/~r/ccapitalist/~3/X0kWfiE_AWQ/
Forex – An alternative Investment
Earlier this month I did something that most of you will probably cringe at – I opened a Forex trading account. To justify my actions (as much as I do not have to) I must state that I am a fan of having ‘fun money’ and my Forex brokerage account will be mine. For those of [...]
Source: http://feedproxy.google.com/~r/MyCanadianFinances/~3/bsYqpK3pPdY/
Friday, October 12, 2012
A Short History of Apple’s Patent Wars
Lawsuits are messy. And the current patent litigation that’s marching through the tech world is particularly so. Apple largely started the massive patent battles that seem to be the preferred tactic for stifling one’s competitors in the rapidly transforming consumer electronics world. Here’s a breakdown of who they’ve sued, and who’s sued them over the [...]
Source: http://www.canadianpersonalfinance.com/a-short-history-of-apples-patent-wars.html
John Lithgow, Part II
He's played heroes, villains, saints, sinners, a ballet-dancing elephant, and a space alien, now actor and children's author John Lithgow - best known as Dick Solomon from NBC's hit show 3rd Rock from the Sun - reveals a new side of himself... poetry lover. The award-winning stage and screen star Lithgow shares his favorite poems, insights into acting, and thoughts on the enduring power of art. Lithgow currently stars in the Broadway revival of Arthur Miller's All My Sons. He has penned several children's books, as well as compiled poems for The Poets' Corner: The One-And-Only Poetry Book for the Whole Family.
Source: http://feedproxy.google.com/~r/bmjvodcast/~3/Hx-EA1qhxjM/profile.html
Dividend Growth Index Q3 Update
The Dividend Growth Index is a fun project created by Mike over at The Dividend Guy. The Index is comprised of 8 dividend growth bloggers selecting 3 stocks each, for a total of 24 dividend paying companies in the Index. My three selections for the Index are: Abbott (ABT:US) Bank of Nova Scotia (BNS) CML [...]
Source: http://feedproxy.google.com/~r/myownadvisor/CsCc/~3/tWSPQjxExPk/
Thursday, October 11, 2012
Want Real Estate Investments But Can’t Buy Property? Consider REITs
The idea of adding real estate to an investment portfolio is one that many are interested in. However, many investors don’t have the capital required to buy property. In those cases, it might be tempting for them to give up, especially if they can’t get another mortgage to make a real estate purchase. However, it...
Want Real Estate Investments But Can’t Buy Property? Consider REITs appeared first on Canadian Finance Blog.
Related Posts:- Real Estate Investment Trust (REIT) Portfolio
- Should You Use A Real Estate Agent To Sell Your House?
- Save Money By Selling Your House Without A Real Estate Agent
Source: http://canadianfinanceblog.com/want-real-estate-investments-but-cant-buy-property-consider-reits/
News Analysis for the Investor on October 11, 2012
Author(s):
Catherine McBreen
IMF calls on the US and Europe to resolve their debt crisis
The International Monetary Fund, or IMF, called upon Europe and the US to act faster to resolve their debt crisis, blaming their failures on the lack of global growth and creating economic uncertainty. According to Reuters, the IMF cut its global growth forecast earlier this week. While Germany indicates that Europe is now on track, the IMF has been frustrated with the piecemeal approach taken by the European Union. Similarly, the US is hoping to fix its “fiscal cliff” in the short time between the November election and year end. Asian shares are mostly negative on Thursday while European shares are positive. The Dow fell 128 points on Wednesday, closing at 13,344.
US foreclosure filings hit 5 year low in September
The Associated Press indicates that US foreclosure filings dropped to a 5 year low in September as fewer homes were on track to be overtaken by lenders. It was the second consecutive monthly decline although results varied by state. On a national level, foreclosures fell 7 percent from August and 16 percent from September 2011. Foreclosures peaked in April 2009 at around 203,000. The current level is 180,427, well above the 34,000 experienced in May 2005. The biggest drops were in California, Arizona, Michigan, Georgia and Texas.
Greece likely to receive more time
CNBC is reporting that the IMF is supportive of Greece receiving additional time to meet its budget goals. The managing director of the IMF, Christine Lagarde, said that heavily frontloading Greece with austerity could undermine its reforms and recovery. It is anticipated that Greece’s debt will once again be restructured and perhaps cut. Greece is still in discussions with the IMF, European Union and European Central Bank. Unemployment in Greece is over 25 percent.
Spain’s credit rating cut to near junk
Reuters reports that Standard and Poor’s cut Spain’s sovereign credit rating to BBB minus, just above junk, due to a deepening economic recession that is limiting the government’s policy options. The downgrade comes with a negative outlook. This rating is similar to the Moody’s rating. Unemployment in Spain is close to 25 percent. Failing tax revenues and costs of unemployment benefits are preventing the government from meeting its 2012 debt reduction target of 6.3 percent. Spain said it had not anticipated the downgrade.
Top Fed Reserve official suggests US bank size cap
A top Federal Reserve official overseeing financial regulation has suggested that US lawmakers cap the size of banks based on their borrowings. According to Dan Tarullo, Fed governor, currently US banks can hold no more than 10 percent of the country’s deposits. The Financial Times reports that Tarullo has proposed a cap based upon the bank’s non-deposit liabilities compared to a percentage of US GDP. This would force a break up of the six biggest US banks by assets, including JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley. Such a proposal still needs to be passed by Congress.
Girl Scout cookie box updated
The New York Times reports that the Girl Scout Cookie Box is getting a makeover. The box will now tell what the girls learn from selling cookies and what the girl scouts do with the funds from the 214 million cookies sold each year. Last year cookie sales increased 3 percent up to $787 million.The girls actually choose how the money is spent for various activities. The box redesign is part of an effort to refresh the organization’s branding. Girl Scout cookies will be 100 years old in 2017.
Bench seat in cars will become history
When the 2013 Chevrolet Impala goes out of production for the redesigned 2014 Impala this year, it will end the production of bench seats in cars. According to USA Today, the Impala is the last car to offer a bench seat as an option. GM says that only 1 in 10 buyers purchased the bench seat option last year. Bench seats lasted 101 years in Chevrolets. They first appeared in the Series C Classic Six of 1911. They are best known for cuddling up with a date, especially during a drive in movie. While they are gone in cars, bench seats will still be available in pickup trucks and sport utilities.
Source: http://www.millionairecorner.com/article/news-analysis-investor-october-11-2012
Subscribe to:
Posts (Atom)