Private Equity Securities Archives - Page 2 of 4

ThursdayMar 20, 2008 5:44 am

Afraid of Outliving Your Income?

"Longevity risk" refers to a potential problem many seniors face: outliving their assets. Statistics show that a 65-year-old man has a 34% chance of living to age 90 and a 17% chance of making it to 95. A 65-year-old woman has a slightly higher longevity risk, with a 44% chance of living to age 90 and a 23% chance of reaching 95.1 This means that at least one out of every five baby boomers could have a retirement that spans three decades.2 How will you spend your retirement years if they number in the thirties? Will your retirement savings be…

ThursdayMar 20, 2008 5:42 am

Don’t Get Burned Chasing Hot Performers

“Ten Funds You Absolutely Must Own Right Now” could be the cover of a major publication you might read. Every year, several financial magazines designate a handful of investments that they exhort the reader to buy immediately. As hype builds, it’s easy to get caught up in the excitement, imagining coffers overflowing with cash. However, chasing the latest investment trends may just as easily leave an investor with a big loss. A Lack of Discipline Sometimes an investor’s biggest obstacle may not be taxes or inflation, but rather his or her own behavior. Undisciplined investor behavior accounts for a high…

MondayMar 10, 2008 6:42 am

Shelter from the Storm

You may see your swimming pool and luxury automobile as creature comforts, but should you find yourself in court as the result of an accident, a jury could see these items quite differently. In fact, in about half of tort trials concluded in U.S. district courts during 2002–2003, a judge or jury found for the plaintiff. Finding yourself on the wrong side of a multimillion–dollar decision would be a bad time to discover you didn’t have enough liability coverage under your homeowners and auto insurance. Coming up short may mean jeopardizing a lifetime of accumulated assets. If you live in…

MondayMar 10, 2008 6:41 am

Join the Millionaire Club

As of 2004, there were 9 million households in the United States with a net worth of $1 million or more, including the value of their primary residences. This figure has more than doubled since 1995, as has the number of households worth more than $5 million, $10 million, and $25 million. For baby boomers, 8,000 of whom are turning 60 every day, $1 million may have seemed an unattainable goal for much of their lives. Yet more and more people are reaching the million–dollar threshold, which puts them in the top 10% of all U.S. households. It Ain’t What…

MondayMar 10, 2008 6:40 am

Tolerating Risk

Nearly all mutual fund shareholders acknowledge that investing in equity or bond mutual funds involves some degree of risk. About half of shareholders say they are willing to assume average risk for average potential gain, and 35% are willing to accept above-average risk for above-average potential gain. The actions of mutual fund shareholders would seem to validate their willingness to tolerate risk in order to reach financial goals: 80% own equity funds, which are generally considered the riskiest type of fund, considerably more than the 49% of shareholders who own less–risky money market funds.2 Whether you are a conservative investor…

ThursdayFeb 28, 2008 9:11 am

Dollar Doldrums or Delight?

When the value of the U.S. dollar achieved parity with the Canadian dollar in September 2007 for the first time since 1976, and set a record low against the euro, the media hardly embraced it as good news.1 But it was a mere five years ago that the financial media were bemoaning the United States strong dollar policy for the damage it was doing to U.S. manufacturing, exports, and tourism. So, is it surprising that the recent dollar weakness didn’t elicit cheers from Wall Street? Not really. The fact is, no matter what happens to the dollar, there are parties…

ThursdayFeb 28, 2008 9:09 am

Going Solo: A Retirement Plan Built for One

Thanks to the Pension Protection Act of 2006, pensions may be going the way of the Greatest Generation that enjoyed them. Three decades ago, 39% of active private-sector employees had traditional pension plans. Today, the figure is down to 19% (about 22 million workers).1 Although most large companies are moving away from traditional defined-benefit plans, a solo defined-benefit plan may be an attractive pension option if you are a sole proprietor or are self-employed. Savings Right on Target Defined-benefit plans allow much larger contributions than many other retirement plans. With a solo defined-benefit plan, the company makes annual deductible -contributions…

ThursdayFeb 28, 2008 9:08 am

Handling Hand-Me-Down Dollars

Inheriting an IRA can be a great source of additional income, but the penalties for mismanaging one are severe. There are strict guidelines regarding distributions from inherited IRAs, and you want to avoid making mistakes. According to the IRS, taxpayers paid over $3.6 billion in penalties on qualified retirement plans for the 2004 tax year.1 For Spouses If you inherit an IRA from a spouse, you can roll the assets into your own IRA and delay withdrawals until you reach age 70½. Or you can keep the IRA in the decedent’s name and remain the beneficiary, in which case you…

FridayFeb 22, 2008 12:41 pm

The High Cost of Low Coverage

More than 40% of U.S. households believe that either they need to buy life insurance or they need to increase their existing coverage. The average difference between the amount of coverage they think they need and what they actually own is about $200,000.1 Why do people who know they are underinsured fail to address the shortfall? The decision to buy life insurance is imbued with complexities that go far beyond dollars and cents. Here are some common objections to purchasing life insurance. Do any of them sound familiar? “It won't happen to my family.” It’s true that the U.S. death…

FridayFeb 22, 2008 12:39 pm

His and Her Uncertainty

Remember “The Newlywed Game,” a TV game show that asked husbands and wives funny questions about each other and then compared their answers? Much of the show’s humor stemmed from the fact that the contestants were only recently married and still didn’t know each other very well. A recent survey revealed that even long–married couples might be surprised by how little they know about each other. When husbands and wives were asked about each other’s ideas concerning retirement, their answers were no laughing matter. More than 30% were unaware of when their mates planned to retire and the retirement lifestyle…

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