Serving Proudly As The Voice Of Valley County Since 1913
Serving Proudly As The Voice Of Valley County Since 1913
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When many people think about investing, the first thing that comes to mind is the stock market. And that’s not surprising, as the rise and fall of stock prices is constantly in the news. But if you’re going to achieve your financial goals, you may well need to look beyond stocks and include fixed-income investments in your portfolio. Fixed-income investments offer three important benefits: • Income – When you invest in fixed-income vehicles, such as bonds, Treasury securities and certificates of deposit (CDs), you receive regular income...
If you’re a business owner, you always have a lot to do and a lot to think about. But have you put much thought into how you’ll eventually leave it all behind? Even if you’re a few years away from that day, it’s a good idea to create an exit strategy. If you’re like most other owners, most of your net worth may well be tied up in your business — so how you exit that business can have a big impact on your finances and your retirement. As you begin the exit strategy process, you’ll need to examine some basic questions, such as how much you want...
You may have read reports about an impending “debt crisis” in the U.S. Should you be worried about investing in Treasury securities? Part of the concern over debt has been driven by the cost of government borrowing, which has risen because of higher interest rates. But it’s worth noting that while interest expenses have risen to nearly two percent of gross domestic product (GDP), this measure had exceeded three percent in the early 1990s. So, while the upward trend of federal debt could prove problematic down the road, the claims of a current c...
As we begin the new year, you may be receiving various tax statements from your financial services provider — so it’s a good time to consider how your investments are taxed. This type of knowledge is useful when you’re doing your taxes, and, perhaps just as important, knowing the type of taxes you generate can help you evaluate your overall investment strategy. To understand the tax issues associated with investing, it’s important to understand that investments typically generate either capital gains or ordinary income. This distinction is mean...
When you plan to retire at a certain age, you can follow a strategy that incorporates your investment moves, your health insurance and other factors. But what happens if you’re forced to retire earlier than you anticipated? Unfortunately, this situation is not that uncommon. About 40 percent of Americans say they have been forced into retirement, according to a recent survey from Edward Jones and Morning Consult, a research firm. If this were to happen to you because of a layoff, company downsizing or a health issue, would you be prepared to ma...
Now that we’ve reached 2024, you might be thinking about your goals and hopes for the new year. But in addition to whatever personal resolutions you might make — volunteering, going to the gym more, learning a new language and others —why not make some financial resolutions, too? Here are a few to consider: • Boost your retirement savings. If you can afford it, try to increase your contributions to your IRA and 401(k) or similar employer-sponsored retirement plan. The more you put away in these accounts, the greater your chances of reachin...
Who knows where the time goes? We’ve reached the end of another year, so it’s appropriate to reflect on the nature of time and how it affects us. And time certainly is a key element in the pursuit of your financial goals. As an investor, time can be your greatest ally. If you hold some investments for the long term, you could achieve an impressive cumulative growth in value. Furthermore, if you keep adding shares to these investments, possibly through a dividend reinvestment plan, you could attain “growth on growth” through the power of comp...
If you want to make a big purchase, such as a new car or a piece of property, or you were faced with a large, unexpected expense, such as a major home or auto repair, would you have the funds readily available? If not, you might look at what may be your biggest pool of money — your 401(k) or IRA. But should you tap into these accounts well before you retire? Maybe not — and here’s why: Less money in retirement – The more money you invest in your retirement accounts, and the longer you keep it invested, the more you’ll probably have when you...
If your children are grown and your mortgage is paid off, do you still need to carry life insurance? It depends on your situation, but for many people, a cash-value life insurance policy, such as whole life or universal life, can be a valuable, tax-efficient source of retirement income. And by drawing on the cash value of your policy, you might be able to temporarily reduce the amount you take out from your retirement accounts, such as your IRA and 401(k). This ability could be especially important when the financial markets are down — y...
Once again, it’s the season of generosity. In addition to considering gifts for your loved ones, you might want to think about charitable gifts as well. But what should you know before making gifts to charities? And what impact might these gifts have on your financial and tax situation? First, you may want to create a gift budget by deciding just how much you will give to charitable organizations over the rest of the year. Next, look closely at the groups to whom you wish to contribute. You can find many reputable charities, but some others m...
As you know, the gig economy has been booming over the past several years. If you’re thinking of using your skills to take on a side gig, what should you do with the money you’ll make? There’s no one right answer for everyone, and the decisions you make should be based on your individual situation. And of course, you may simply need the extra income to support your lifestyle and pay the bills. But if you already have your cash flow in good shape, and you have some freedom with your gig money, consider these suggestions: • Contribute more to...
As you go through life, you’ll have various financial goals — and to achieve them, you’ll need to invest. But just recognizing the need to invest is not as useful as matching specific types of accounts or investments with specific goals. How can you make these connections? Let’s look at some common goals and how they could possibly be met with appropriate accounts and investments: • Saving for a down payment on a house – When you’re saving for a down payment, you want a certain amount of money available at a certain time — so, for this goal,...
You may spend decades contributing to various retirement accounts. But for some accounts, such as a traditional IRA and 401(k), you must start withdrawing funds at a certain point. What should you know about this requirement? To begin with, the rules governing these withdrawals — technically called required minimum distributions, or RMDs — have changed recently. For many years, individuals had to begin taking their RMDs (which are based on the account balance and the IRS’ life expectancy factor) when they turned 70½. The original SECURE Act of...
We all make mistakes in many areas of life. These mistakes are usually fairly harmless — we took a wrong turn while driving, used the wrong ingredients in a recipe and so on. But sometimes, our mistakes can be costly — especially those connected to investing. Here are some of the most common investment mistakes: • Too much buying and selling – Some people find it exciting to constantly buy and sell investments in the pursuit of big gains. Yet, frequent trading can work against you in a couple of ways. First, it can be expensive — if you’re al...
If you’ve invested in an IRA for many decades, it may well turn into a key source of income for your retirement. Still, you might not deplete your IRA in your lifetime, especially if you also have a pension or a 401(k) and other investment income. So, if your IRA still has sizable assets after your passing, it would likely end up in your estate plan. If you leave your IRA to grown children or other family members, could they be hit with a big tax bill? Here’s a little background: Up until the Secure Act of 2019, those who inherited tra...
It’s not as well-known as Halloween, but National Retirement Security week happens every October – the third week, to be precise — and while it doesn’t involve ghosts and goblins, it does deal with something even more frightening: the risk of not being able to enjoy a comfortable retirement. Through various events, this occasion highlights ideas about building retirement security. What steps can you take? Here are some suggestions: • Don’t underestimate your longevity. Consider this: 65-year-old men can expect to live another 20 years, whil...
If you’re a long-term investor, your portfolio may stay fairly stable over time. However, that doesn’t mean you will never sell any investments. But when should you sell — and why? Here are some scenarios to consider: • If an investment has consistently underperformed – For one reason or another, some investments may not live up to your expectations. Rather than holding these investments in the hope that they will eventually show consistently positive returns, you might be better off selling them and using the proceeds to buy other investments...
Managing your finances and investing for your future are important tasks — and they can be challenging. But you don’t have to go at it alone. Many people benefit from working with a financial advisor, someone who knows their needs and goals and makes appropriate recommendations. If you’re considering getting some help, you’ll want to ensure a particular financial advisor is right for you, so it’s a good idea to ask questions. Here are some to consider: • Have you worked with people like me? All of us are unique individuals. Yet, you do shar...
Paying for health care can be challenging — but are you taking full advantage of all the resources available to you? You might have access to a Health Savings Account (HSA) or a Flexible Spending Account (FSA), so let’s look at both. An HSA is a personal savings account used to pay health care costs. If you’re enrolled in a high-deductible health plan, you also may be eligible to contribute to an HSA. You aren’t taxed on the money you put into this account or on the earnings generated from your contributions, as long as withdrawals are used for...
If you have grandchildren, you probably enjoy spending time with them and watching them grow. And to help them achieve a bright future, you might like to make some financial gifts — but which ones? You have several options. Let’s look at three of them: • 529 plans – When you invest in a 529 education savings plan, any earnings growth is distributed federally tax free, as long as withdrawals are used for qualified education expenses. (Withdrawals used for expenses other than qualified education expenses may be subject to federal and state t...
If you own a small business or are self-employed, you’ve always got plenty to do, but you can’t forget about the days when you’ll be less busy — that is, when you’re retired. How can you prepare for that time of your life? One key step is establishing a retirement plan for your business or yourself. And thanks to the 2022 SECURE 2.0 Act, you can now receive tax credits for opening and administering a 401(k), SEP-IRA or SIMPLE IRA. These aren’t the only plans available for small businesses or sole proprietors, but they are among the most popula...
You’ll find some big differences between traditional and speculative investments — and knowing these differences can matter a great deal when you’re trying to reach your financial goals. To begin with, let’s look at the basic types of traditional and speculative investments. Traditional investments are those with which you’re probably already familiar: stocks, bonds, mutual funds, government securities, certificates of deposit (CDs) and so on. Speculative investments include cryptocurrencies, foreign currencies and precious metals such as g...
When you retire, you’ll experience many changes — should one of them involve your living arrangements? The issue of downsizing is one that many retirees will consider. If you have children, and they’ve grown and left the home, you might find yourself with more space than you really need. Of course, this doesn’t necessarily mean you must pack up and scale down yourself. You might love your home and neighborhood and see no reason to go. But if you’re open to a change, you could find that moving to a smaller house, a condo or an apartment...
Most investors are aware of the different types of stocks: big-company, small-company, technology, international and so on. And it may be a good idea to own a mix of these stocks as part of your overall investment portfolio. But the importance of diversification applies to bonds, too — so, how should you go about achieving it? To begin with, individual bonds fall into three main types: municipal, corporate and government. Within these categories, you’ll find differences in the bonds being issued. For example, government bonds include con...
To be successful in most endeavors, it’s important to develop good habits — and that’s certainly the case for investors. And the earlier one develops these habits, the better. So, if you have teenagers who may be starting to work at part-time jobs, now may be a great time to introduce them to investing — and one place to begin might be a Roth IRA. As you may know, a Roth IRA is a popular retirement savings vehicle — its earnings can grow federally tax-free, provided withdrawals aren’t taken until the investor is at least 59½ and has had the...
