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.
Todays show is a rebroadcast of the July 8th program. Enjoy the show!
Ironically, Twitter may become a victim of the times it helped invent. So says Steven Sears, writing in Barrons. Steve and Sinclair review the stats on Twitter whose IPO has not worked out well. In the real world, Institutional money managers are using social media for financial intelligence more and more, but Twitter ranks last, after LinkedIn and Facebook for financial intel. According to the study, 20% of analysts first use LinkedIn to research industries, followed by 13% for Facebook, and 9% for Twitter. For market and event commentary, 18% turned to LinkedIn, 13% to Facebook, and 12% to Twitter. For investment products and services, it’s 13% for LinkedIn, 9% for Facebook, and 5% for Twitter. Sears reviews put, call, and collar strategies. In the Q & A, Pension and Qualified plan specialist Mary Read joins the A Team to discuss defined benefit plans, cash balance plans, and 401ks for small business owners. Mary has been instrumental in over 10,000 qualified plans in her career.
Todays show is a rebroadcast of the July 13th program. Enjoy the show!
When it comes to asset allocation, where does gold fit in? Is it an investment? Is it a speculation? Is it insurance? Or is it simply a back up currency? On Mondays this summer, Steve has invited Nick Grovich of American Federated Coin and Bullion to share his views on gold, coins, and metals. Listen in to "inside baseball" on the gold markets. Steve comments on a recent article in Barrons': "Bye-Bye Bond Funds" which focuses on the multiple risks that bond mutual fund and ETF owners are faced with now.
Todays show is a rebroadcast of the July 29th program. Enjoy the show!
Biotech and Pharma are tearing up the market this year, and according to Ron Winslow writing in the Wall Street Journal, a powerful new class of drugs promises hope for high-risk patients with cholesterol issues—a group that numbers in the millions. Companies like Regeneron may be in the right place at the right time, up over 25% for the year. Is there room to run? Sinclair and Steve review what's happening. In the Q & A segment, CFP® Murray Titterington with IQ Wealth joins the A-Team to discuss Social Security taxation issues.