Target-Date Funds:  Investing on Auto-Pilot

Month: June 2013

June 26, 2013  |  

Target-Date Funds: Investing on Auto-Pilot

Target-date funds have become very popular in recent years especially in retirement plans and 401(k) plans.  At the end of May, assets in these funds topped $550 billion according to Morningstar, an investment research firm.  The funds are designed to be a single investment vehicle with asset allocations that change over time as the fund approaches a particular date. Investors often choose a fund with a target-date that approximates their retirement date. As the years […]

June 20, 2013  |  

Understanding 401(k) Plan Fees and Expenses

If you direct your own 401(k) plan investments you’ll need to consider the investment objectives, the risk and return characteristics, and the performance over time of each investment option offered by your plan in order to make sound investment decisions. Fees and expenses are factors that may affect your investment returns, and therefore impact your retirement income. Why Should I Care About Plan Fees? In a 401(k) plan, your account balance will determine the amount […]

June 18, 2013  |  

I Just Bought a Vacation Home. Do I Need to Purchase a Specific Type of Insurance?

Thoughts of summer vacation combined with the low mortgage interest rate environment may have created the perfect recipe to buy a vacation home.  Vacation properties are a big investment and it’s important to protect your purchase. Insuring a vacation home is different from insuring a primary residence. As a result, you’ll want to purchase insurance that is specifically geared to provide coverage for this type of property. When insuring a vacation home, the type and […]

June 13, 2013  |  

The Randomness of Sector Returns

If only successful investing was as easy as predicting the next winning sector of the market. The news media, with its incessant pundit interviews, implies that this is not only possible but that it’s the preferred method of investing. Alas, the record and research from academia indicates otherwise. In fact, relative returns among industry sectors in the US equity market are just as unpredictable as returns among equity markets, bond markets, and asset classes around […]

June 6, 2013  |  

Should You Delay Your Social Security Retirement Benefit?

Social Security benefits are a major source of retirement income for many people. When you begin taking Social Security greatly affects the size of your benefit. Your Social Security retirement benefit is based on the number of years you’ve been working and the amount you’ve earned. When you become entitled to retirement benefits at age 62, the Social Security Administration (SSA) calculates your primary insurance amount (PIA), upon which your retirement benefit will be based, […]