To itemize or not is the question for 2018
As the new year begins and taxpayers contemplate another round of 1040s, many are pondering The Big Question: Do I take the standard deduction or spend time hunting for receipts and filling out extra forms to itemize? The decision largely boils down to whether itemizing will reduce your taxable income more than the flat, no-questions-asked standard deduction will, thus saving you... READ MORE
Companies pay investors record dividends
It pays more than ever to be an investor. U.S. companies sent a record amount of cash to their shareholders as dividends in 2018, as their profits continued to pile higher. The increase is key for shareholders, offering a bit of stability in what was a stomach-churning year for the stock market. The S&P 500 index twice plunged by 10 percent, and by Dec. 17 had lost 150 points for the ... READ MORE
Play defense: add utilities to your portfolio
Since the bull market began in 2009, shares in utilities — water, gas and power providers — have lagged Standard & Poor’s 500-stock index. But recent rockiness in the stock market bodes well for the traditionally defensive utilities sector. From the S&P 500’s peak in late September to mid-December, the index surrendered 13.1 percent, including dividends. But shares in... READ MORE
Five mistakes not to make with annuities
Recently, we learned an elderly client had unexpectedly cashed out of an annuity that was part of her portfolio, and moved her money to another product. In the process, she accepted a $13,000 surrender charge, increased the amount of time her funds will be tied up with a different annuity, and guaranteed herself a lower rate of return. When I called her, she said an insurance agent had... READ MORE
Is earnings growth as good as it will get?
Here’s the challenge when something’s as good as it gets: What comes next? Companies across industries are in the midst of reporting another quarter of gargantuan profit growth, driven by lower tax bills and a growing economy. Amazon said its net income surged more than tenfold during the summer from a year earlier, for example. Yet stock prices are not getting the boost that they ... READ MORE
The pros and cons of preferred stock
In many of my articles, I have recommended a balanced portfolio consisting of both common stocks and bonds, especially in or near retirement. In retirement, I have maintained a 50-50 ratio of stocks to bonds, in order to avoid significant fall in portfolio value during a bear market in stocks. Bond investors have many options. When the Federal Reserve raises interest rates frequently,... READ MORE
Can you finally ignore your credit score?
At some point, you’ll buy your last car and refinance your last mortgage. Surely then you can stop worrying about your credit scores. Well, not really, although there are situations when credit scores shouldn’t be anyone’s main concern. Let’s start with some reasons why credit scores still matter, even when you don’t plan to borrow money. Lenders aren’t the only ones... READ MORE
Veterans benefits continue after death
Dear Savvy Senior: Does the VA provide any special burial benefits to old veterans? My dad, who has late-stage Parkinson’s disease, served during the Vietnam War in the 1960s. — Only Child Dear Only: Most U.S. veterans are eligible for burial and memorial benefits through the Department of Veterans Affairs (VA) National Cemetery Administration. Veterans who were discharged under... READ MORE
Five best moves for your portfolio
These portfolio moves will help boost the income you get from your portfolio, shield it from inflation, and make it less volatile, too. Dial down volatility. Stocks with low volatility should weather dips better than jiggier peers. Invesco S&P 500 Low Volatility ETF (symbol SPLV, $48) holds the 100 stocks in the blue-chip index with the lowest volatility; iShares Edge MSCI Min Vol... READ MORE
Shop around to find good savings interest
Savers rejoice — you can finally earn a little more on the money you’ve been setting aside. To draw in customers, banks — particularly online institutions — have been getting more competitive with the rates they are offering on savings, CDs and even checking accounts. That means a savvy consumer may be able to earn far beyond the norm if they are willing to shop around. Take... READ MORE
