Think You Can’t Contribute to a Roth?  Think again: Advantages of a 401(k) Roth Option

Month: February 2016

February 24, 2016  |  

Think You Can’t Contribute to a Roth? Think again: Advantages of a 401(k) Roth Option

Key Takeaways The Roth option in 401(k) retirement plans eliminate IRS income limits applied to Roth IRAs. Participants in plans offering the Roth 401(k) option can split their contributions between both traditional and Roth accounts–thus, building two buckets of money to fund their nest egg. There are no income limits for Roth 401(k) accounts, and potential ways to avoid Required Minimum Distributions! Does your current employer’s sponsored 401(k) retirement plan offer a Roth option?  Sounds […]

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February 17, 2016  |  

5 Things to Know About Executors

Key Takeaways This is a great honor, but also a big job Your duties as executor may be in conflict with the family’s wishes Organizational skills are very important  1. What is an executor? An executor is a personal representative who acts on your behalf after you die. You nominate or designate an executor in your will in order to settle your estate. An executor’s responsibilities typically last from nine months to three years or […]

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February 4, 2016  |  

Expected Sources of Premium Stock Returns Part IV: Risk Premiums, Lucky Monkeys and Patient Practice

In our series of posts so far, we’ve described how and why we have identified small-company and value stocks as likely ongoing sources for risk premiums. This begs one more question: Why not just get out of various return factors when they’re underperforming and get back in when things are looking up? The Market-Timing Myth That would be a great idea, if only factors didn’t under- and outperform so frequently, and with such little notice. […]

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February 1, 2016  |  

Expected Sources of Premium Stock Returns Part III: Capturing Return Premiums Requires Resolve

In our last post, we described how small-company and value stocks have served as a source for premium returns in the past. Today, we’ll explain how capturing these returns has rarely been as easy or obvious as 20/20 hindsight might lead us to believe. Figure 2 Consider Figure 2, from 1928–2014. It illustrates three critical points about how the average premium returns we described in our last post were actually delivered. (1) Average does NOT […]