Mark Hulbert of the world famous Mark Hulbert Digest and a regular columnist on MarketWatch, has been tracking the results of all major investment newsletters for over 30 years.
On Mastering Money today, Steve and Sinclair reveal the number one market strategy since 2000, and how he did it. Hulbert gives hard statistics that may surprise you.
In the Q & A segment, commercial real estate attorney Christopher McNichol joins the A-Team to discuss the difference between gross leases, net leases and ground leases, and what liabilities arise.
Get up to date on the markets then get educated on leading financial trends.
Are you one of the 95% of gold owners not making any money. National gold expert Nick Grovich of American Rare Coin and Bullion (national headquarters is in Carefree, AZ) joins the A-team to review key questions asked at the recent Retirement Preservation Workshop. Learn what to look for, and what to avoid.
On Mastering Money today...Steve and Sinclair review a T. Rowe Price documented study of retiree income withdrawal rates from 2000 to 2010, using a '55-45' stock-bond portfolio--find out which of four retirees--each with $500,000 dollars and a slightly different approach-- ended up with the best chance of NOT running out of money in retirement, and which technique all but guaranteed total income failure. This was a T. Rowe Price study--the results may surprise you! (does not involve annuities)
Over the past year, the S&P 500 index has fallen approximately 11%, even though many of its constituents are sporting pretty lofty dividends. Many companies also continue to buy back their stock. But until recently when the shorts have been squeezed, there hasn’t been enough motivation to tempt investors into some of the traditional dividend payers like Catepillar and Ford. Investors appear to be worried about China's slowdown and its aligning with different trading partners, global economic growth, and low oil prices. With many blue chips yielding 3% to 5.5% based on their lower share prices, will big investors move more heavily into dividend payers? Steve and Sinclair review a Wall Street Journal report. In the Q & A, estate planning attorney Richard Dwornik joins the A-Team to explore issues with blended families--and happily married couples who, themselves, aren't blended, but whose kids are divorcing and blending. Who gets what, when, and how?
Suddenly, the future just ain’t what it used to be for Smart Beta funds. By now, you’ve probably heard of “smart beta” mutual funds and exchange-traded funds. Some academic studies using back-tests suggest that, yes, these new-age portfolios—in which stocks are weighted by rules or “factors” other than their market value, like dividends, value, high momentum, or low volatility—can outpace a straight index over extended periods—say, a full market cycle or two. But don’t expect outperformance every year. In fact, many Smart Beta funds that took off rather well, are falling harder than the market itself. That's what they were built to avoid. Steve and Sinclair examine why its happening. In the Q & A, we review a Kiplinger's quiz on money management for couples who want to stay together for the long haul.
The Fed raised interest rates back in December--so are you wondering why your money market account isn't paying more? Steve and Sinclair investigate why recent yields are unchanged from the levels of Dec. 15 at 13 of the 20 largest share classes of “prime” money funds for individuals, according to Crane Data LLC, a Westborough, Mass., firm that tracks money-market funds. These include funds from Bank of New York Mellon Corp.’s Dreyfus Funds, Federated Investors Inc., Charles Schwab Corp. and T. Rowe Price Group Inc.
Steve reviews key planning points in the Q & A segment, and previews his upcoming workshop.
Take a hypothetical investor named George who retired on Jan. 1, 2000, at age 65 with a $1 million all-stock portfolio, and spent $50,000 a year on his RLE, adjusted for inflation. Considering the S&P 500 lost 41.2% in nominal dollars (or 53.4% after inflation) between the day he retired and Feb. 28, 2009, George would have barely $100,000 left of his nest egg by the end of September 2014, with perhaps ten to twenty years to go for him and his wife. Steve and Sinclair review a Wall Street Journal article by former Neuro Surgeon turned financial analyst, William Bernstein. Bernstein developed a formula for calculating the amount of nest egg you need to retire, based on your Residual Living Expenses (RLE). Steve and Sinclair dig into it and more.
Passwords are ruling our lives, but here's the rub: hackers can break into virtually any system protected by a typed in password. New technology is on the way that will finally eliminate the password. Apple and Alphabet are working on it as we speak. We review a special report in the Wall Street Journal.
In the Q & A segment, CPA Nick Stefaniak joins the A-Team to review some of the 26 most overlooked tax deductions in the tax code.
Looking for predictors of stock market direction? How about butter production In Bangladesh? Not kidding, this is an indicator, along with the Super Bowl indicator, the ladies hemline indicator and others that actually have higher correlation success than many big name mutual fund manager predictions. According to its adherents, taking the change in butter production in Bangladesh and multiplying it by two will give you the exact percentage by which the S&P 500 Index will change in the year ahead. Steve and Sinclair review this indicator along with several others, including the "nationality-of-the-model-on-the-Cover-of-the-Sports Illustrated-bathing suit-issue indicator." (This indicator has outperformed the S & P considerably by the way.)
In the Q & A, Sinclair grills Steve with some tough questions on annuities and how they fit in today's retirement portfolios.
How helpful are mutual-fund rankings from research firms such as Morningstar Inc. and S&P Capital IQ? New evidence suggests that for many investors, the answer may be “not very.”
This according to a Wall Street Journal research piece submitted by Dr. John Payne and Dr. Shlomo Benartzi.
Dr. Benartzi is a professor and co-head of the behavioral decision-making group at UCLA Anderson School of Management. Dr. Payne is a professor at Duke University’s Fuqua business school.
Steve and Sinclair review this intriguing report.
In the Q & A segment, H & R Block Master Tax Advisor and Enrolled Agent Doris Milton joins the A Team to discuss some surprising facts about the medical expense tax deduction.