Pay for lifelong learning with tax-free fund
If you have helped children or grandchildren with college costs, you are probably already familiar with 529 plans — the tax-advantaged education savings accounts offered by states and educational institutions. There’s no federal tax deduction for 529s, but residents can usually get a state tax deduction on contributions made to their own state’s plan. Furthermore, the money... READ MORE
Live like the royals — frugally, that is
With an estimated net worth of $88 billion, the British royal family is one of the wealthiest monarchies in Europe. However, just because money is no object for them doesn’t mean they’re frivolous spenders — quite the opposite. It has been well-documented that Queen Elizabeth II keeps a close eye on her spending, and frugality is a trait that has passed down to other members of... READ MORE
The rise of gray divorce: why or why not?
Till death do us part? Not so much. In the past 25 years, the divorce rate for Americans over the age of 50 has more than doubled. While divorce rates for other age groups have leveled off or even fallen, one out of every four people going through a divorce in the United States is 50 or older, according to research by sociologists Susan L. Brown and I-Fen Lin. Compare that to 1990,... READ MORE
In defense of some managed bond funds
I want to discuss bond funds whose managers aren’t hemmed in by allegiance to an index or by the ultraconservative viewpoint that Treasury bonds and notes are the center of the universe. I dislike such stolid holdings as total bond market exchange-traded funds and funds designed to replicate the Bloomberg Barclays Aggregate Bond index — which is 42 percent Treasuries and includes no... READ MORE
Ways you can stop frustrating robocalls
Dear Savvy Senior: Is there anything I can do to stop perpetual robocalls? It seems like I get five to 10 a day on my home and cell phone, and I’m sick of it! —Frustrated Frank Dear Frank, Robocalls make up around 50 percent of all phone calls today, and it’s only getting worse. Americans were hit with 26.3 billion robocalls in 2018, a whopping 46 percent increase from the year... READ MORE
Is umbrella insurance worth purchasing?
We never dreamed that a short story about umbrella insurance would be the top-ranked article in Kiplinger’s monthly reader survey, but that’s exactly what happened when we tackled the topic in July 2018. The article also generated plenty of reader mail. Many of you wrote to ask us to revisit the topic and help you determine how much umbrella coverage you need — and to do just that, ... READ MORE
Cash rules as stocks and bonds waver
Suddenly, cash is king again. For years, cash languished at the bottom of the investment rankings, weighed down by nearly non-existent interest rates. But with the Federal Reserve raising short-term rates four times last year, money-market funds and online savings accounts began paying interest that came close to approaching inflation. This while stocks, bond funds and gold all posted ... READ MORE
Tax strategies for approaching retirement
When steady income from employment stops, it’s replaced with other sources, such as pensions, Social Security and investments. You can usually control when to start these income sources and — in the case of investments — decide which account to pull money from, as different accounts may have different tax consequences. This gives you a chance to explore tax strategies that can have ... READ MORE
Are index funds becoming too popular?
Forty years ago, the thought of buying a stock index fund was ridiculed. Why would anyone be satisfied with an investment that promised nothing more than the same return as the market? Later this year, however, U.S. stock index funds may for the first time control more in assets than mutual funds run by stock-picking managers who are trying to deliver better returns than an index like... READ MORE
Some smart moves in a volatile market
Down 650 points one day. Up more than 1,000 points the next. Down 660 points another day. That was the Dow Jones industrial average’s performance just during one week in January. How should investors handle these market ups and downs? In the short term, just take a deep breath and don’t panic. “Turn off, or at least turn down, the financial talking heads,” said financial planner... READ MORE
