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Nov 14, 2018
Setting up joint accounts between parents and children may seem like an effective way to prepare in case of emergency or if people need help with finances as they get older, but it can cause some big tax and estate problems. Here's a dual strategy to consider instead.
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Nov 13, 2018
The Standard & Poor's 500-stock index is on pace for a loss in 2018. While the 1% decline year-to-date isn't broadly catastrophic, it has been fueled by several shares that have simply been cleaved. But there is a silver lining: This has created a number of deeply discounted stocks to buy.
History has shown us that when rates rise, stocks typically decline - at least temporarily. This was the case in 1994, 2006 and last February. The market's latest swoon, caused in part by more upward pressure on interest rates, may be painful, but it too may just be temporary. That's little comfort to owners of numerous stocks that have fallen precipitously off their recent highs. But that is good news for bargain hunters that are looking for battered stock picks to grab up off the ground.
Here are 10 deeply discounted stocks to buy - companies that are anywhere from 20% to 50% off of their 52-week highs:
SEE ALSO: 101 Best Dividend Stocks to Buy for 2019 and Beyond
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Nov 13, 2018
Yes, the stock market is open on Veterans Day, but the bond market is closed. See a complete list of all 2018 market holidays.
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Nov 13, 2018
Imagine you missed out on an opportunity of a lifetime because of something you just discovered that your mother did years before. Could you challenge her estate to get what you feel you deserve?
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Nov 13, 2018
Wall Street loves its acronyms. For a long time, FANGs have reigned supreme, but now it may be time to pay attention to the BAITs.
When was the last time you read a market recap that did not include mention of the FANG stocks? Depending on your definition, this group of typically (but not always) highflying tech stocks included the likes of Facebook (FB), Amazon.com (AMZN), Netflix (NFLX) and Google parent Alphabet (GOOGL), though other stocks are often mentioned in the same breath.
Why not? Acronyms catch investors' attentions and get plenty of media play. The problem is when these vaunted stocks don't give investors the fat returns they expect. Sure, Amazon is up 38% year-to-date, but it is now trading down 13% from its Sept. 4 peak. Alphabet's performance lags the Standard & Poor's 500-stock index by two percentage points for the year, and Facebook is actually negative by 22%.
But a different group of tech stocks seems poised to carry the mantle of market leadership. And they provide the game-changing technology to the world's second largest economy. They are China's version of the FANGs, called BAITs. they now look attractively priced thanks to China's recent bear market.
SEE ALSO: Emerging-Markets Stocks: 10 Ways to Play the Next Bull Market
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Nov 13, 2018
Before you go out and buy a snazzy new car or a 52-inch TV, read this. Research shows there may be something else to splurge on that'll make you so much happier.
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Nov 12, 2018
Moves you make between now and the end of the year can have a significant effect on how much tax you have to pay next April, particularly when it comes to investments you might hold outside a retirement account.
But time is running short. Review our list and get cracking.
SEE ALSO: Tax Map 2018: All 50 States Ranked for Taxes
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Nov 12, 2018
The market may be in turmoil, but there still are some compelling stock picks out there for the savvy buyers willing to dig a little deeper.
Amazon.com (AMZN) and Google parent Alphabet (GOOGL) recently posted disappointing third-quarter earnings results, dragging down the rest of the market. It appears Wall Street is checking out of large-cap growth stocks for a moment; perhaps now is time to take a breather from them.
We used TipRanks data to identify 10 promising stocks with a "Strong Buy" Street consensus - and what sticks out is how little these companies stick out. While Wall Street likes a few big, blue-chip names you're familiar with, it also is awfully bullish on some under-the-radar companies.
Here are 10 stock picks that you may not know, but are definitely worth checking out. Wall Street sees these as stocks to buy right now, garnering a significant percentage of buy ratings over the past three months. We also can get an idea of the growth potential via the average analyst price target.
SEE ALSO: 101 Best Dividend Stocks to Buy for 2019 and Beyond
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Nov 12, 2018
The name of the game in investing is "total return." When you buy a stock, your total return comes from two places - price appreciation and dividends. For the longest time tech stocks were never mentioned hand-in-hand with dividend stocks. Pick up Amazon.com (AMZN) for $300, sell half at a thousand bucks a few years later, and you're sitting on free shares worth $1,600 each a year after that. That's the blueprint!
Many tech stocks used to offer share splits as their prices rocketed higher. However many technology companies are maturing, and with breakneck growth in the rear-view mirror, and they need a different way to draw investors. The answer, for many, has been to start delivering dividends, paying investors for owning their shares.
To be clear, tech stocks that pay dividends aren't done growing. The increased presence of technology in all aspects of human life means that there's still plenty of upside, even for Wall Street's biggest tech companies. To wit, old-guard blue chip Microsoft (MSFT) has surpassed Google parent Alphabet (GOOGL) and Facebook (FB) in market value this year, and it's neck-and-neck with Amazon.
Here are 10 tech stocks that offer an ideal combination of dividends and growth potential. They might not be the flashiest names in the sector, but they deserve attention nonetheless.
SEE ALSO: 101 Best Dividend Stocks to Buy for 2019 and Beyond
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Nov 12, 2018
Value stocks are en vogue again.
As recently as the end of May, stock prognosticators were calling for the Dow Jones Industrial Average to hit 30,000. Some suggested the Dow would reach that number by the end of 2018. Growth looked in, and slow-but-steady value picks were out.
That was until October's bout of nauseating volatility. Thanks to a trade war with China, higher interest rates, problematic technology earnings and worries that a decade-long bull market is primed to lose its legs, the Nasdaq hit correction mode and the Standard & Poor's 500-stock index came close. Growth stocks - especially smaller companies - have been hammered, while large-cap value stocks have gained favor among investors looking for a little protection to go with their upside potential.
Here are 10 large value stocks to buy now, with the expectation that they should thrive compared to their growthy brethren in a tumultuous environment.
SEE ALSO: 101 Best Dividend Stocks to Buy for 2019 and Beyond
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Nov 12, 2018
Vanguard dominates the 401(k) world. More of the company's funds are among the list of the 100 most popular funds in workplace retirement plans than any other fund firm, says consulting firm BrightScope.
This year, 19 actively managed funds make the list - 10 are "traditional" mutual funds and nine are target-date funds, which we will analyze as a set.
We will look at some of the best Vanguard funds for your 401(k) and filter out some lesser options. We rate each "buy," "sell" or "hold." As always, symbols, expense ratios and trailing performance data are for the investor share class. Your 401(k) plan may offer a different share class, with lower fees.
SEE ALSO: The Best Mutual Funds in 401(k) Retirement Plans
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Nov 12, 2018
If there's one thing investors have been able to count on during this long bull market, it's companies repurchasing record amounts of their own stock. Recent volatility notwithstanding, big stock buybacks are a trend that's expected to continue.
"For the second half of 2018, indications are strong for increased corporate expenditures in both buybacks and dividends, with annual records for both," wrote Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices, in a report summing up buyback activity through the first half of the year. "Buybacks appear to be on a roll, supporting stock price via more purchases and increasing earnings per share through lower share counts."
Lower corporate tax rates and companies repatriating cash held overseas are helping fuel an acceleration in share repurchase programs, which were already going strong. Indeed, over the past five years, companies in Standard & Poor's 500-stock index bought back a stunning $2.82 trillion of their own stock, according to S&P Dow Jones Indices.
Although it takes more than share repurchases to support stock prices, they sure do help - and investors generally love them. When it comes to returning cash to shareholders through stock buybacks, these are the most generous companies over the past half-decade.
SEE ALSO: The Kiplinger Dividend 15: Our Favorite Dividend-Paying Stocks
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Nov 12, 2018
Investors need to bring their hopes back down to earth and possibly tweak their portfolios, because returns in the next decade may be less than stellar.
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Nov 12, 2018
Your worst risk may also be your biggest blessing: a long life. Take some steps now to make sure you will have the income you need to last a lifetime.
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Nov 12, 2018
The conditions are looking increasingly favorable for a hurricane of a stock market correction to form. Luckily, like with most hurricanes, investors have time to prepare.
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Nov 09, 2018
Now is a good time to boost savings and double-check your benefits. But the most important decision to make is whether to sign up for the new Blended Retirement System.
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Nov 09, 2018
If you spent your career in the military, you've probably lived all over the U.S. and around the world. But before you put down roots in retirement, find out how much of your hard-earned pension will be taxed. You'll pay tax to the federal government on military retirement pay that's based on age or length of service (disability pensions might not be taxed). With state taxes, though, it isn't always so clear.
Many states provide special tax breaks for military retirees or for retirement income in general. And, of course, some states don't even have an income tax. But some other states aren't so generous when it comes to helping retired veterans at tax time.
We've identified 9 states, and Washington, D.C., with not-too-friendly tax rules for military pensions. These states may tax at least part of your pension, and some tax the entire amount. We've listed the least tax-friendly of these states first. Take a look.
SEE ALSO: Best States for Low Taxes: 50 States Ranked for Taxes, 2018
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Nov 09, 2018
Most stocks have been thoroughly shaken and stirred since early October, and a long-overdue corrective move finally took shape. Not even the bluest of the blue chips have been immune. The Dow Jones Industrial Average still is off its record high from a couple months ago, and several Dow stocks still are vulnerable to more selling.
The initial shellshock has started to fade, however, the smoke is clearing and some stocks are recovering. Smart investors are now weighing the impact and searching for opportunities. Some Dow Jones stocks may have more downside to dish out, but a handful of these iconic names are looking oversold, undervalued and ripe for a rebound sooner than later. Remember: Corporate earnings have never been better, and consumer confidence is as high as it's been in years. Clearly something is going right.
Here's a look at five Dow stocks that may have more ground to give up before they hit bottom, and two industrial-average components that may already be buys at current prices. But a note: Most of these "stocks to sell" are merely in short-term trouble. A sizable pullback from any of them could ultimately turn into a buying opportunity.
SEE ALSO: 12 Vulnerable Stocks to Watch on Market-Wide Weakness
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Nov 09, 2018
Retirement savers can stash an extra $500 in IRA and 401(k) plans, and the income limits for contributing to a Roth are higher.
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Nov 09, 2018
Did you know there's an actual equation to figure out this crucial piece of the retirement puzzle? Find out how to do the math yourself to get a general idea of what to shoot for.
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Nov 08, 2018
With the U.S. unemployment rate near a 50-year low, it's a great time to be looking for a new job. Employers have plenty of openings to fill, and wages are even starting to rise after remaining stubbornly stagnant for years. But exercise caution before blindly switching careers. Even as the economy prospers, some occupations continue to fade as the evolving employment landscape leaves them behind.
To help today's job seekers better grasp the realities of the labor market and avoid dying professions, we analyzed 773 occupations, considering their pay rates, growth potential over the next decade and educational requirements. The bottom of our rankings are littered with jobs that pay little at present and are expected to shed positions in the future. Take a look at 20 of the worst jobs for the future, along with our suggestions for alternate career paths that utilize comparable skills or satisfy similar interests while offering better growth and pay prospects.
SEE ALSO: 35 Ways to Earn Extra Cash
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Nov 08, 2018
T. Rowe Price mutual funds may not get as much attention as their bigger brothers in the 401(k) space, Vanguard and Fidelity. But the firm's offerings are solid. There isn't a dog in the bunch.
Six actively managed T. Rowe Price funds and eight of the provider's Retirement target-date offerings rank among the 100 largest 401(k) funds, according to BrightScope, the workplace retirement plan consulting firm.
Here is a breakdown of some of the best T. Rowe Price mutual funds for your 401(k); we'll also weed out some lesser options. We rate each one either "buy" or "hold" (none of the funds listed here rated a "sell"). Read on for more details.
SEE ALSO: 25 Best Mutual Funds in 401(k) Retirement Plans
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Nov 08, 2018
When you're choosing a health plan for the year -- whether you get coverage through your employer or on your own -- one option may be a high-deductible plan that makes you eligible to contribute to a health savings account. Weigh this option carefully. There are a lot of misconceptions about how HSAs work. Health savings accounts offer a triple tax break -- contributions aren't taxed, the money grows tax-deferred, and it can be used tax-free for eligible medical expenses at any time.
Here, we take a look at several of the most common HSA myths -- and the reality.
SEE ALSO: 50 Ways to Save on Health Care
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Nov 08, 2018
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Note: We have updated this slide show with results. See the top of each state to learn whether the measures were approved or rejected.
Ballot initiatives are one of the purest forms of democracy. Citizens vote directly on matters important to them, bypassing the normal (and often messy) lawmaking process.
On November 6, voters in 18 states will have their say on a wide variety of proposed tax law changes. Will Colorado ditch its flat income tax rate? Do Washington voters want a carbon tax? Will feminine hygiene products be taxed in Nevada? A resident's overall state tax bill could go up or down by hundreds, maybe even thousands, of dollars each year depending on how voters respond to these questions.
If your state isn't holding a tax referendum this year, you should still pay attention to these proposals. You may see similar tax measures on your next ballot because states (especially neighboring ones) often mimic successful tax policies. But remember, just because voters approve something doesn't mean it's going to happen. Sometimes that's because the measure is simply meant to be advisory; sometimes it's because state legislators or executives don't agree.
The states with statewide, tax-related ballot measures are listed here alphabetically. Take a look.
SEE ALSO: All 50 States Ranked for Taxes
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Nov 08, 2018
If you are between the ages of 60 and 70, the time could be right to pump some money out of big, fat 401(k)s and traditional IRAs into tax-free Roth accounts.
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Nov 07, 2018
Costco gets big ups from shoppers and shopping experts alike for its high quality and low prices. During recent research trips we've been impressed too, highlighting some of the best things retirees should buy at Costco as well as some of the warehouse club's best store-branded Kirkland Signature products.
With annual membership fees ranging from $60 to $120, it's tempting to wring as much as you can from every Costco run: bulk packages of toilet paper, eggs in 24-packs, 10-pound bags of flour or a 12-pound Japanese Wagyu boneless ribeye roast (just $999.99). But as enticing as buying everything in bulk at Costco might be, it's not always the wisest choice, says Tracie Fobes of money-saving website PennyPinchinMom.com. "For example, that big pack of toilet paper may look like a great deal, but what do you pay at your [local grocery] store? What is the price per roll there versus what you are getting at Costco?"
Understanding per-unit pricing is critical when buying in bulk. So too is understanding that you might not use up such large quantities before they spoil or expire. Here are 10 things you should think twice about before buying in bulk at Costco. Take a look at the list.
See Also: 18 Kirkland Products You Should Buy at Costco
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Nov 07, 2018
As far as investment portfolios go, cash doesn't get the respect it deserves. It should be valued as a star player on your retirement plan.
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Nov 07, 2018
Honesty, respect and money are concepts that go hand in hand. To spark productive conversations about ethics with your children and grandchildren, try these two car games.
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Nov 06, 2018
Holding property for too long is a mistake many investors make. On the other hand, rushing to buy a property to comply with 1031 rules can be a bigger problem. Sometimes it's better to take the tax bite than rush into a bad deal.
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Nov 06, 2018
Those investing in real estate have to be prepared for the baggage that comes with it. If you'd rather not bother, there are two investment opportunities that offer the benefits without the baggage: REITs and limited partnerships.
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Nov 05, 2018
Four ways to help protect your sensitive digital information from hackers without breaking the bank.
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Nov 05, 2018
Here's how to save more the next time you shop for household goods, buy auto insurance, purchase prescription drugs plus more.
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Nov 05, 2018
Follow these steps to help maximize your portfolio's earning power.
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Nov 05, 2018
Here are our top picks for investments, rewards credit cards, cell phone plans, online security and more.
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Nov 05, 2018
Wring all the gains you can out of an aging bull market with stocks that balance growth and yield.
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Nov 05, 2018
Splitting up money is easy. Splitting up an antique car or a vacation home isn't. And unless you plan ahead by answering these three questions, your family could be in for some strife.
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Nov 05, 2018
Annuities can be a valuable tool in your retirement arsenal, IF you choose wisely and use them in the right way.
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Nov 02, 2018
Socially conscious investing has gone mainstream with many people now factoring environmental, social and corporate governance criteria--the ESG triumvirate that define so-called sustainable investing--into their portfolio decisions. In fact, worldwide investment firm Schroders reports that, over the past five years, 70% of U.S. investors have increased their allocation to ESG investments. In 2018, 43% of U.S. institutional investors--endowments, foundations and pension plans--incorporated ESG factors into their decision-making process, nearly twice the percentage in 2013.
One driving reason for the increased interest in values investing: The strategy has proven to reward investors just as well as other investing approaches. In fact, we found five actively managed funds--four stock funds and one bond portfolio--that combine an ESG ethos with stellar returns. Nearly all beat their benchmarks over the past five years (one has a shorter, but still impressive, track record). Take a look.
SEE ALSO: 101 Best Dividend Stocks to Buy for 2019 and Beyond
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Nov 02, 2018
As pensions disappear, retirement savers are left to fill that gap on their own, and that job's getting tougher to do all the time.
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Nov 02, 2018
Lifestyles of the rich and famous don't come cheap, and grandchildren who get used to the perks may be in for a rude awakening down the road. Here are two reasons why.
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Nov 01, 2018
Whether your divorce is amicable or rancorous enough to inspire a country music song, it's important to pay attention to taxes when dividing your assets.
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Nov 01, 2018
The White House plan to freeze fuel economy standards faces a rough ride.
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Nov 01, 2018
Currency risk hurt one of columnist Kathy Kristof's holdings — giving her one good opportunity to offset capital gains.
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Nov 01, 2018
More funds are looking for companies that pay attention to environmental, social and corporate governance factors.
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Nov 01, 2018
Take action before the end of the year to save money and improve your finances for 2019.
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Nov 01, 2018
Sustainable or values investing is mindful of three types of issues -- environmental, social and governance.
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Nov 01, 2018
When choosing a phone plan, talk and text are the least of your concern; your cost will largely depend on how many users (lines) you choose and how much data you expect to use.
If you're switching plans, refer to a recent bill so you needn't guess about usage and try to anticipate any changes ahead -- say, you're retiring or kicking the kids off your plan. Here are suggested plans for various types of users.
SEE ALSO: Best Personal Finance Products and Services, 2018
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Nov 01, 2018
The Kiplinger Dividend 15, the list of our favorite dividend-paying stocks, doled out plenty of payout love in its first year, with an average yield of 3.7%.
To make it into our lineup, dividend stocks had to first beat the 2% average yield of the Standard & Poor's 500-stock index. We then looked for firms that are leaders in their industry and that have solid prospects for expanding their sales and profits, while also generating enough cash to pay investors. And we aim to avoid dividend traps -- stocks with high yields but weak underlying businesses and poor prospects.
We've made just one change in the list, pulling CVS Health (CVS). Although the stock has performed well, it broke its streak of dividend increases, which was one reason we recommended it. We'll introduce its replacement in a minute.
We're keeping the rest of the Kiplinger Dividend 15, which we divide into three groups, for their dividend stability, briskly growing payouts or high yields. Find a dividend stock that suits your needs, or select a mix.
SEE ALSO: 101 Best Dividend Stocks to Buy for 2019 and Beyond
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Nov 01, 2018
Financials are having a volatile year, but investors should remain patient with them — and consider Financial Select Sector SPDR, one of our favorite ETFs.
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Nov 01, 2018
Nothing that has happened this year or that looms over 2019 should threaten these elites.
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Nov 01, 2018
This market-neutral fund delivers consistent returns despite market volatility.
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Nov 01, 2018
These members of the Kiplinger 25, the collection of our favorite no-load mutual funds, require new investors to jump some hurdles in order to buy initial shares -- but we think you should endure the hassle.
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Nov 01, 2018
Owning gold or oil -- or both -- can even out the volatility of a stock-heavy portfolio.
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Nov 01, 2018
Wall Street has been pretty crazy lately, and if you're worried about it, here are five things you can do to help make sure you'll be OK.
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Nov 01, 2018
Use our guide to save on taxes, avoid probate and keep peace among your heirs.
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Nov 01, 2018
A rental real estate investment can seem like a great way to build your wealth (and maybe generate a little extra income), but how often does it really work out that way?
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Oct 31, 2018
Many people choose a business that takes advantage of skills they've developed at a 9-to-5 job.
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Oct 31, 2018
There's a lot of evidence that retirees may be worrying too much about preserving their money.
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Oct 31, 2018
If you're not switching jobs, smart negotiating could help you get ahead of the trend.
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Oct 31, 2018
These care packages let deployed service members know they are appreciated.
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Oct 31, 2018
Your cell-phone service is taking aim at spammers and spoofers.
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Oct 31, 2018
Think you're getting a low fare? Be sure to add up the extras before you buy.
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Oct 31, 2018
Utilize free ship-to-store services or retail lockers to thwart porch pirates.
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Oct 31, 2018
Besides creating iconic brands, including Craftsman and Kenmore, Sears was a financial innovator.
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Oct 31, 2018
Rising interest rates won't affect savings bonds, which makes them a money-smart gift for a young child. Here's our top pick.
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Oct 31, 2018
Invest in a child's future with gifts of stock or contributions to a Roth IRA or college savings.
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Oct 31, 2018
For nearly a decade, savers have kept pictures of Federal Reserve Board members on their dartboards: The Fed brought interest rates to record lows after the financial crisis of 2008, but it has been raising interest rates since December 2015. Kiplinger projects another hike in December and at least three more in 2019. You'll hear cries of anguish from borrowers and bond investors, but savers will be doing a happy dance. Here are seven ways to cash in on cash.
SEE ALSO: 35 Ways to Earn Extra Cash
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Apr 24, 2018
While Google's parent beat Wall Street estimates, the uninspiring Q1 report should have shareholders on edge
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Apr 24, 2018
Here's how I helped my client take the RMDs he didn't need and turn them into peace of mind for his children's future.
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Apr 24, 2018
The road is not an easy one, but even if you've been denied, there are ways you can improve your chances at getting the help you need (and that you paid for through your FICA payroll taxes).
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Apr 23, 2018
I saw an article about sector exchange-traded funds recently. While the author was talking about the 11 different S&P 500 sectors and how you can trade each of them using State Street SPDRs, it got me wondering about all the other sector ETFs to own in the marketplace.
According to ETFdb.com, there are 446 sector ETFs to own that aren't SPDRs with more than 30 over $2 billion in assets under management ensuring they won't be closed due to a lack of investor interest.
Interestingly, Bloomberg reported in March that BlackRock (BLK) introduced iShares Evolved, a group of actively managed ETFs that will use machine learning and natural language processing to pick the stocks that are held by the funds.
Therefore, a company like Amazon.com (AMZN), which traditionally gets slotted in a retail or consumer discretionary sector ETF, will be held by both its technology and discretionary spending ETFs.
I've long thought someone should introduce a sports ETF because of how many sectors sports businesses cross in their day-to-day operations. For example, CBS Corporation (CBS) is a media company but it's also a sports business owning several sports-related broadcasting entities.
While most investors consider sector ETFs a way to plug holes in one's portfolio, I see all seven of the sector ETFs listed here being good to own for the long haul.
Prices and data are from the original InvestorPlace story published on Apr. 17. Click on ticker-symbol links in each slide for current prices and more.
SEE ALSO FROM KIPLINGER: 10 Funds That Can Beat the Market for Another Decade
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Apr 23, 2018
Oil's fundamentals are changing for the better. And you don't need to trade futures to climb aboard.
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Apr 23, 2018
Before you take the plunge, take the time to do a series of background checks on the exchange you're thinking of using. Some have much stronger protections and better reputations than others.
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Apr 23, 2018
Despite a circuit court ruling that essentially (at least for now) nullifies the Department of Labor's consumer protections, retirement plan sponsors still need to do the right thing ... or else. And consumers need to keep an eye out.
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Apr 22, 2018
The IRA contribution limit is $5,500. If you are age 50 or over, you can contribute an extra $1,000 as a catch-up contribution, for a total of $6,500.
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Apr 22, 2018
The Roth IRA contribution limit is $5,500. If you are 50 or older, you can save $6,500 including a $1,000 catch-up contribution. Income limits apply.
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Apr 20, 2018
Emerging-markets funds are on fire. Over the past 12 months through April 18, the MSCI Emerging Markets index has returned 27.1%. That's 7.6 percentage points more than the MSCI EAFE index of developed countries outside the U.S. and 9.6 percentage points better than Standard & Poor's 500-stock index.
The rally looks likely to continue. Corporate earnings are growing at a rapid clip in many emerging markets, and the stocks are cheap. EM shares are trading at 11.9 times analysts' estimates for the coming 12 months. That compares to a forward price-earnings ratio of 16.6 for the S&P 500 and 13.8 for the rest of the developed world. The World Bank projects emerging economies will grow 4.5% this year compared to 2.2% for developed economies.
Emerging markets do have their issues. For instance, EMs have higher rates of corruption than developed economies and many have not embraced capitalism. Russia is the poster child for these afflictions. Many emerging markets are dominated by commodity-producing companies, which tend to go through long periods of feast and famine. Others, such as China, have a high percentage of state ownership of publicly traded companies.
Historically, emerging markets have either led the pack or trailed it for multiyear periods. The most recent dry spell was from 2011 through 2015, when EMs lost an annualized 4.8% thanks to meager earnings growth, particularly in commodities. For the five previous years, emerging markets returned an annualized 12.8%, topping the U.S. and the MSCI EAFE index by more than 10 percentage points.
My advice: Own emerging markets, especially when they're relatively cheap, as they are now. But don't get carried away. Dedicating 10% or 15% of your portfolio to a good emerging-markets fund makes good sense to me. Here are my five favorites:
SEE ALSO: The 25 Best Low-Fee Mutual Funds You Can Buy
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Apr 20, 2018
The stakes can be higher for a second marriage, because you probably have built a more established career, have amassed more assets and possibly some children as well. So be prepared before you set foot down that aisle.
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Apr 20, 2018
Singles don't have to pay taxes on up to $250,000 in profits on the sale of their home, and couples can shelter twice that amount from taxes. But even if the gain is much higher, there are ways for home sellers to minimize the tax bite.
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Apr 20, 2018
Biotech stocks typically are considered one of Wall Street's more aggressive sources of growth. These companies spend years and gobs of money to create breakthrough biological treatments and diagnostic tools, and successful developments can literally change their fortunes - and the fortunes of shareholders - overnight.
The flipside? Many of these companies generate no revenues, and are reliant on just one or two products to change that. Thus, failure to receive FDA approval can put their very existence at risk, and any setbacks often result in swift, stark losses.
Typically, this risk scenario puts biotech stocks on the outs when the market is volatile and investors are looking to go on the defensive. But so far through the first months of a very shaky 2018 in which the markets are essentially flat, most biotech exchange-traded funds are actually beating the market soundly.
It makes sense. While Wall Street might be worried about a trade war with China or tensions in Syria, these biotech companies still are running clinical trials, and still generating interest from larger pharmaceutical companies that are looking to buy their way to more robust pipelines.
Biotech ETFs are a safer way to buy into the space than individual companies. By investing in a basket of dozens or even hundreds of these biotechnology stocks, you reduce the risk that a single-stock failure will torpedo your whole investment, while still participating in the broad upside that this industry has to offer. Here's a closer look at eight funds that give you varying types of exposure to biotech.
SEE ALSO: The 15 Best ETFs for a Prosperous 2018
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Apr 20, 2018
In Warren Buffett's most recent letter to shareholders, he updated a data point that never gets old: Just how much Berkshire Hathaway (BRK.A, BRK.B) shares have outperformed the Standard & Poor's 500-stock index. Between 1965 and the end of 2017, the S&P 500 has put up a plenty-respectable 15,508% ... but Berkshire shares have delivered an overall gain of 2,404,748%!
Yes, Buffett's clout means he can swing some deals that regular investors can't get, but those returns are still a resounding seal of approval for the value investing principles that the Oracle of Omaha espouses. And those principles should drive even higher returns in the future - especially if higher interest rates put heavily indebted firms at risk.
"The economic environment continues to favor corporate earnings," says Jim Barnes, Director of Fixed Income at financial services company Bryn Mawr Trust. If earnings are threatened by higher borrowing costs, however, that could make the companies with the healthiest balance sheets and more prudent approaches much more desirable - thus, value stocks could seem even more attractive very quickly.
"Classical value investing principles are timeless, and after one of the longest bull markets in history, they are extremely important today," says Don Wilson, CIO of Brightworth, an Atlanta-based investment company.
Closed-end funds are an excellent way to invest in a broad swath of value stocks. In addition to the ease of getting exposure to dozens or even hundreds of stocks in just one fund, many CEFs boast much higher yields than their mutual fund and exchange-traded fund counterparts. Here are five such funds that value-minded investors should consider.
SEE ALSO: 50 Dividend Stocks You Can Count On
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Apr 19, 2018
Many people take Social Security early and put off tapping into their IRAs and 401(k)s until they must. But that's the opposite of what most should do, because waiting until 70 to take benefits can pay off in more ways than one.
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Apr 19, 2018
Easy-money policies across the globe have set us up for some rocky times ahead. Here's why, and what retirement savers and investors should be doing now to protect themselves.
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Apr 19, 2018
The passage of the 2017 Tax Cuts and Jobs Act was the beginning of tax change, not the end. It's likely to touch off plenty more changes ahead ... so be prepared to take advantage of them if you can.
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Apr 18, 2018
The first-quarter earnings season is here, and this one is an important one. That's because we should see the effects not only of an economy that's heating up, but the massive corporate tax cuts signed in at the end of 2017.
So far, it mostly has been financial stocks. But the really interesting part of earnings season will come in the latter part of April and early May, when the most important tech stocks' results start to flow in earnest.
Mike Bailey, director of research for independent investment management and wealth services firm FBB Capital Partners, thinks the next few weeks could prove compelling for most of the names in the technology industry.
"Steady demand for new tech hardware and software coupled with a weaker dollar are driving sales, while lower tax rates and major share repurchases are boosting earnings," he says, adding, "Generally clean balance sheets mean rising interest rates should have only a modest impact on tech profits during Q1."
Here's a closer look at 10 tech stocks that represent arguably the 10 most important quarterly earnings releases from the sector. Every investor likely has a stake in at least a couple of these names. Not to mention, their results also could have an impact on several other companies not on this list.
SEE ALSO: The 18 Best Stocks to Buy for 2018
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Apr 18, 2018
In many sectors, initial public offerings (IPOs) can generate a lot of buzz. After all, a new company is entering the markets. Investors want to know what the company does, how it operates and what potential it holds for future profits. For biotech IPOs, things are a bit different.
For one thing, they're much more common. Of the last 100 IPOs, 30 have been healthcare stocks. And that's just since the end of September 2017.
That's a lot to keep track of for any investor who is also thinking about their current investments. Adding to the confusion is the very nature of biotech stocks themselves. Specifically, biotechs depend on highly scientific developments and properties, which companies often use highly-technical language to explain.
So here's a starting point for investors looking at biotech IPOs. There are five biotech companies expected to go public before the end of April. Here's a breakdown of what they actually do.
SEE ALSO FROM KIPLINGER: 20 of the Best Stocks You Probably Haven't Heard Of
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Apr 18, 2018
If you're getting hounded by calls, emails or letters from the IRS, how do you know they're legit? Here are some warning signs of scams to watch out for.
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Apr 17, 2018
When searching for a 529 college-savings plan for a grandchild, first check whether your state offers a tax break for your contributions.
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Apr 17, 2018
Dividends play an unsurprisingly prominent role when it comes to long-term wealth creation. Indeed, take a look at the best stocks of all time, and you'll see that most of them have long histories of returning cash to shareholders through regular dividend payments.
We know this thanks to research by a finance professor who made a startling discovery about the stock market: Over a 90-year span, 96% of all stocks collectively performed no better than risk-free one-month Treasury bills. After analyzing the lifetime returns of 25,967 common stocks, Hendrik Bessembinder, of Arizona State University's W. P. Carey School of Business, determined that just 1,092 of those stocks -- or about 4% of the total -- generated all of the $34.8 trillion in wealth created for shareholders by the stock market between July 1926 and December 2016. Even more striking, a mere 50 stocks accounted for well over one-third (39.3%) of that amount.
Although price appreciation did much of the heavy lifting, dividends played a key role in wealth creation, as well.
Now, here's a look at the 10 best-performing dividend payers since 1926, culled from these top-50 stocks.
SEE ALSO: 50 Dividend Stocks You Can Count On in 2018 and Beyond
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Apr 17, 2018
Experts urge training, support and rest for aging caregivers as seniors caring for seniors in retirement becomes increasingly common.
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Apr 17, 2018
Some self-employed savers can put away as much as $61,000 for retirement in a solo 401(k), depending on age and compensation.
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Apr 17, 2018
The maximum contribution is $55,000, up from $54,000 in 2017 and significantly more than can be saved for retirement in a regular IRA.
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Apr 17, 2018
You might not be thinking about the practical tasks that need to be accomplished as soon as possible, but these steps are critical to safeguard an estate and ensure that it is passed down as smoothly as possible.
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Apr 16, 2018
Conventional wisdom holds that bonds' value falls as rates rise, and rates are rising, so now what? Well, before you start selling, read this.
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Apr 16, 2018
The decision depends on the level of the fee, what services are included, how often you trade and any hidden costs that may eat into your balance.
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Apr 16, 2018
Starting in 2018, the tax deduction that giving to charity provides may be no longer be available to many people. That is, unless they change the way they give. Here are three strategies to help keep the deduction many count on.
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Apr 16, 2018
Bitcoin is back. Kind of.
The biggest financial story of 2017, the cryptocurrency Bitcoin was worth less than $1,000 in January, then worth more than $29,000 by December. As 2018 opened, the Bitcoin market was worth over $250 billion - more than AT&T (T).
The new year was unkind to Bitcoin, which quickly dipped to $15,000, then $10,000, and fell to nearly $6,000. It recovered from there but has spent much of the past month dipping back below $7,000. Now, though, Bitcoin is suddenly a hot topic once more, with the cryptocurrency jumping $1,000 in less than an hour recently, and volume suddenly recovering.
But there is so much more to the cryptocurrency story than Bitcoin.
By April 2018, more than 1,500 of these currencies were in circulation, sporting a market value of nearly $330 billion, according to Coinmarketcap, which tracks the market. Some of these cryptocurrencies, or altcoins, are designed to handle more transactions than Bitcoin. Others are designed to protect user privacy, or separate the process of finding the coins or "mining" them from the process of trading them. Still others are designed to stand in for real currencies in international trade.
If you want to get to better know the cryptocurrency world, you need to move beyond just Bitcoin. Here's a look at 10 of the more important cryptocurrencies in existence, including how they came to be, what distinguishes them and what they may be good for.
SEE ALSO: How Well Do You Really Understand Bitcoin?
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Apr 16, 2018
The Tax Cuts and Jobs Act raised the federal exemption from estate taxes to $11.2 million per person, or $22.4 million for a married couple, so the vast majority of taxpayers won't have to worry about federal estate taxes. However, if your goal is to leave as much as you can to your heirs, then you should also pay attention to the state you choose for retirement.
Twelve states and the District of Columbia levy their own estate taxes, sometimes called death taxes, and some have much lower thresholds than Uncle Sam. In addition, six states have inheritance taxes. Maryland, whose nickname is the Free State, has both.
The good news for retirees focused on estate planning: There are 33 states that have neither estate taxes nor inheritance taxes. Delaware, which eliminated its estate tax at the end of 2017, is the latest state to join the list. New Jersey also nixed its estate tax at the end of 2017, but it still has an inheritance tax.
SEE ALSO: 37 States That Don't Tax Social Security Benefits
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