No Social Security COLA in 2010

The Social Security Administration recently announced that there will be no COLA (cost of living adjustment) for social security recipients in 2010.
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Investors on the Sidelines

Investing is an activity that can be characterized as simple but not easy. One of the most difficult parts of investing is hanging in there when things get tough. If you aren’t in the market during the good times, you will never make up for being in the market during the bad times.
Unfortunately, a “wait [...]

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To Roth or Not to Roth?

In 2010, the Feds are offering high income taxpayers an opportunity to convert a traditional IRA to a Roth IRA (regardless of income). They’ve even sweetened the pot with a deferral of the tax owed on the conversion (over two years, 2011-2012).
So, should you convert? It depends on a number of factors and the decision [...]

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Daytrading Reprise: This Time it’s Currencies

Do you remember when everyone seemed to be quitting their jobs so they could devote more time to their new-found day-trading skills?

Well, here we go again. History has a tendency to repeat itself and this time around it is likely to end even worse since currency trading usually employs massive leverage (ie, up to 100 [...]

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IRS May Cut 401(k) Contribution Limit

Because of the current deflationary environment, the Feds may cut the employee deferral limit to $16,000 in 2010.
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Multi-Millionaire Tech Tycoon, John Mcafee Loses Fortune but Gains Much More

John McAfee, known for his virus-prevention software and for inventing “instant messaging” has lost almost all of his fortune due to the stock market and real estate meltdown.
He’s gained much more than he’s lost though: “I feel a sense of freedom,” he said. “People think that it’s a joy to own things. But it really [...]

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Inflation: If You Wait Until it Arrives, You’ll be too Late

Despite the current benign inflationary environment, inflation poses a threat to your financial well-being as great as that of market volatility.
And if you think you’ll be able to see it coming and react fast enough to protect yourself, guess again. Like stock prices and interest rates (and every other financial or economic variable), inflation is [...]

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A Primer on TIPs Bonds (Treasury Inflation-Protected Securities)

Inflation-adjusted Treasury bonds (TIPs) offer investors a nice inflation hedge, but they aren’t without risks. Namely, their total return will be affected by prevailing interest rates, supply and demand, and expected future inflation (not just actual inflation). Lesson: while appropriate in many portfolios, they aren’t a “silver bullet.”
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Don’t Bet the Farm on Bonds

Bonds are an important piece of most portfolios but the “great recession” has many investors moving money to bonds based on recent past performance.
The past isn’t necessarily prologue: the current interest rate environment and potential future inflation could cause this strategy to be “performance chasing” of the worst kind.
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Be Careful About Picking Beneficiaries for Your IRAs and 401(k)s

Inheriting IRA or 401(k) proceeds from a friend or relative can be a potentially huge windfall, but it can also be a sizable tax headache. For both the giver and the recipient, it’s worth getting some advice.
Bank accounts, stocks, real estate and life insurance proceeds generally pass to heirs free of income tax. However, inherited [...]

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