A varied portfolio is a hallmark of a savvy investor. You may be amused by the efforts of some of your friends and neighbors as they try to “chase the return” in the stock market. We all seem to know a day trader or two: someone constantly hunting for the next hot stock, endlessly refreshing browser windows for breaking news and tips from assorted gurus. Is that the path to making money in stocks? Some people have made money that way, but others do not. Many people eventually tire of the stress involved, and come to regret the emotional decisions …
IRA Contribution Limits Rise For 2013
Save a little more for retirement. Time to boost your IRA balance. In 2013, you can contribute up to $5,500 to your Roth or traditional IRA. If you will be 50 or older by the end of 2013, your contribution limit is actually $6,500 this year thanks to the IRS’s “catch-up” provision. The new limits represent a $500 increase from 2012 levels.1 January is an ideal time to max out your annual IRA contribution. If you are in the habit of making a single annual contribution to your IRA rather than monthly or quarterly contributions, try to make the maximum …
The Fiscal Cliff & Your Taxes
What will change (and won’t change) as a result of the new legislation. Several tax hikes, some tax breaks. Now that the fiscal cliff deal assembled in Congress is becoming law, it is time to look at some of the tax law changes that will result. Here are the major details in the bill, which will bring significant tax hikes to some households in an effort to increase federal revenues by $600 billion over the next ten years.1 The Bush-era tax cuts will be preserved for at least 98% of taxpayers. Individuals with incomes of $400,000 or less and households …
Fiscal Cliff Averted
If you’ve been paying any attention to the media over the past few weeks, you’ve heard about the looming Fiscal Cliff that threatened to push the fragile U.S. economy back in to recession. As a New Year’s gift to the U.S. people, Congress decided to pass a bill averting this cliff. It’s commendable that Republicans and Democrats could overcome their petty differences to pass a bill that actually makes sense. My biggest annoyance with all this talk about the 1% paying their “fair” share in taxes, was that Democrats proposed couples with $250,000 in annual income pay higher taxes. In …
Macro-Economic Follies
Every year, especially around Thanksgiving and Christmas, we hear the mainstream media tell us how important consumer spending is for our economy – after all consumer spending is 70% of our economy. So by that logic, consumption is good and savings must be bad, right? Well maybe if you’re a Keynesian economist. But if you follow Adam Smith or Hayek, you believe that increased productivity leads to more wealth. Forced spending just leads to improper allocation of resources. Here’s a fun explanation, in tune with the Christmas spirit: [embedplusvideo height=”370″ width=”608″ standard=”http://www.youtube.com/v/7uKnd6IEiO0?fs=1″ vars=”ytid=7uKnd6IEiO0&width=608&height=370&start=&stop=&rs=w&hd=0&autoplay=0&react=0&chapters=¬es=” id=”ep4924″ /] You can read …