…If you weren’t paying attention to the stock market before Monday, you are now. ..”A 1,000-point drop in the Dow Jones Industrial Average will do that,” says best selling author Jason Zweig writing for the Wall Street Journal. The market recovered somewhat on Tuesday, but when we see blood red arrows pointing down for several days in a row, it is very easy to suspect the worst. Being sensitive to bad—or potentially bad—outcomes can be helpful, but reacting in herky jerky fashion can be costly. Big sounding numbers scare people. Experiments have shown that people believe cancer is riskier when they are told that it kills “1,286 out of 10,000 people” than when they hear that it kills “24.14 out of 100 people.” Hearing “1,286” immediately brings a large number of victims to mind, while “24.14” is simply a much smaller number. Actually, 24.14 % would affect far more people. Steve and Sinclair review Mr. Zweigs article and then review the facts about bear markets and corrections. In the Q & A segment, high powered attorney Christopher McNichol joins the A-Team to discuss options on real estate, and how they differ from first rights of refusal, and first rights to offer. Steve wraps up in segment 4 with historical market perspectives.
With the stock market getting blasted, many investors are wondering what's coming next. Many are looking at gold as not only a safe haven, but as a potential upside position. The price of gold is sitting near its cost of getting it out of the ground, and half of the world tends to look to gold as a safe haven as currencies gyrate. Some investors are buying gold. Precious Metals expert Nick Grovich reviews important fundamentals in segments 2 and 3. Steve and Sinclair wrap up the numbers in segment 4.
The market is getting rocked in August as China's woes go global. Not missing an opportunity, shock jock newsletter writers are talking about the Chinese yuan replacing the dollar as the world's "reserve" currency. Is there any truth to it? Are we headed for the end of the financial world as we know it? Learn what's really going on. Sinclair and Steve review some important facts and what you really need to know. In the Q & A segment, national blogger and well known CFP® Michael Kitces, who holds a Masters Degree in both Financial Services and Taxation, joins the A-Team to review the actual value of Social Security payments and how "back door IRA's" work. The back door IRA can work but Michael points out what can go wrong under the "step transaction rules."
Both on the radio and at steak dinner seminars, you will hear about the Stretch IRA. It can sound like a windfall of some sort, but there are realities--the "fortune" that is created over a fifty year period can be decimated over time by fees, inflation and poor markets. The Stretch can be a good thing, but several factors must be considered. The fact is that an IRA owner has the right to name whoever they wish to be the beneficiary of their retirement account, but what about your trust? Steve and Sinclair dig deep into Stretch IRAs, trusts as beneficiaries, and the Restricted Beneficiary Payout designation.
Many retirees consider the idea of buying a franchise to supplement their retirement or even to fund an IRA. Some can be good opportunities but look before you leap. Most franchises cost six to seven figures to get in. Is it worth it? Subway is a lower cost franchise, however, many believe it has expanded beyond reasonable limits and franchisees report net earnings are down. Steve and Sinclair review a Wall Street Journal piece with interesting facts on the expansion of Subway, McDonald's, and Starbucks, pros and cons. CFP® Murray Titterington with IQ Wealth joins the A Team to review rules on earnings limitations while taking Social Security, as well as ex-spousal claiming rules.
The middle American renter is being squeezed out of being able to save for retirement--or even to save for a down payment to buy a home. Steve and Sinclair delve into the real estate luxury apartment trend and how American renters are now spending between 30% to 50% of their incomes on rent alone. This squeeze is another brick in the wall in the historic deflationary picture we live in, and why this economy is stuck in "flat." As an investor you need to know your situation and foresee what's coming next. In the Q & A segment, real estate attorney Stephanie Wilson joins the A team to discuss the risks and issues with mold--both from the victim's and investors perspective.
Commodities have fallen in value during the great deflation of the 2000's, but recent price movements indicate gold could be poised for a move. China and India's economy will eventually have their say on which direction gold, platinum, and silver head to in price. The Chinese yuan devaluation could trigger uncertainty and lead to gold buying. Is copper a metal you should watch as a predictor for the precious metals? Or does it matter? Nick Grovich and Sinclair Noe dig deep into the fundamentals of metals and how to incorporate metals at low prices into your portfolio. Steve reviews a more effective, real world approach to organizing your retirement plan in segment 4.
Reinvesting dividends in quality stocks is a proven path to long term accumulation, but the demand for the most popular dividend paying stocks has pushed their valuations to high levels. According to the Wall Street Journal’s Dan Strumpf, interest-rate jitters are taking their toll on high-dividend stocks. Double digit losses in 2015 have now replaced double-digit gains seen in recent years. Investors plowed $48.4 billion into mutual and exchange-traded funds tracking utilities and REITs from 2010 through 2014, according to Morningstar Inc., but now, many large institutions are moving away. You may not want to be sitting in some of these positions as the tide goes out. In the Q & A segment, Neil MacNeal, whose stock split strategy has been recognized by Mark Hulbert at MarketWatch, and has doubled the Wilshire 5000 since 2000, returns to Mastering Money to talk splits with the A-Team.
Shock jock newsletter writers are talking about the Chinese yuan replacing the dollar as the world's "reserve" currency. Is there any truth to it? Are we headed for the disruption of the financial world as we know it? Sinclair and Steve review some important facts and what you really need to know. In the Q & A segment, well known CFP and financial educator Michael Kitces joins the A-Team to review the actual value of Social Security payments and how "back door IRA's" work. Michael, who holds a Masters Degree in Taxation, likes the idea but also cautions about what can go wrong under the "step transaction rules."
Spies are infiltrating Wall Street. According to Bradley Hope writing for the Wall Street Journal, a wave of companies with ties to the intelligence community are winning over the world of finance--with banks and hedge funds putting the firms’ terrorist-tracking tools to work in multiple ways. It turns out the CIA gave many of these companies their big break, through the private-equity arm of the CIA known as In-Q-Tel. Steve and Sinclair review the trend. In the Q & A segment, CFP® Murray Titterington joins the A-Team to discuss why the service at the Social Security system is so slow, and what to do about it. Steve reviews real estate opportunity and risk.