BUSINESS

08/28/2008

Thrift Savings Plan has basic blocks to build your retirement portfolio
I saw your advice to a Seattle reader who had lost some money in the government Thrift Savings Plan. I also have over $100,000 in the TSP.

08/24/2008

Variable annuities mostly benefit insurers
Variable annuities have a tough row to hoe. Doomed to being measured against better alternatives, they simply can't overcome the burden of their fees or the higher tax rates investors must pay on their returns. The last year has been no exception.

08/21/2008

A primer on annuities
I would like to know the difference between a variable annuity and a life annuity. A few years ago, I invested $100,000 in a tax-deferred variable annuity. Later, I came to know there is a surrender charge for seven years. Is a life annuity tax-deferred? Is there a surrender charge?

08/17/2008

Fret a little less about dying broke
A new study indicates that most Americans will die broke. You may think that's just more bad news, but read on. I'll tell you why things may be better.

08/14/2008

Financial adviser is helping himself - not his client
A co-worker is 65. He is going to start taking Social Security though he is still working full time as an engineer, making good money. I am close to being the same, but one year older. I'm wondering if I should do the same thing.

08/11/2008

Give yourself a raise - with a few spending cuts
Yes, there is a silver lining in the gigantic cloud that surrounds us. It's small, but it has a value far greater than most people realize.

08/07/2008

More retirees paying taxes on Social Security benefits
What triggers taxation of Social Security benefits and what does not? Can the tax be avoided?

08/03/2008

Retirees may see a big boost in benefits
Senior citizens can look forward to a major increase in Social Security benefits next year. Unless there is a sudden rush of deflation in the current quarter, the increase will be the largest in 25 years.

07/31/2008

T-bill fund offers safety, but with low yield
Would you give us retirees your view as to the safest place for our hard-earned savings while we are having bank failures?

07/27/2008

Don't count on the tax tooth fairy - or politicians
It has been a long time – decades – since we suffered from tax inflation. In the late 1970s, Bureau of Labor Statistics reports regularly showed taxes rising faster than food, energy or other costs.

07/24/2008

Mortgages and retirees don't mix
My parents, who are retired, are looking for a house in the Dallas-Fort Worth area. They're trying to decide whether to pay cash for the house.

07/22/2008

To junk or not to junk an SUV
I have a confession to make. Do you remember the parsimonious Prius I've written about, the one that gets 45 miles per gallon? Well, it isn't the only car in the Burns family.

Steps for getting a guaranteed lifetime income
I am 73 and have investigated buying back the Social Security benefits I took at age 62. The buyback number is $158,529. My current monthly benefit is $1,231. A total buyback would give me a new monthly benefit of $2,019. This is a difference of $788 a month. My spouse is approaching 59 years of age.

07/13/2008

Control your 401(k)
Securities attorney and investment adviser Daniel R. Solin has saved our bacon once again, just as he did at this time last year. That's when he offered a short book on investing for everyone – even those sitting at the beach, smudging pages with sunblock-smeared fingers.

07/10/2008

Broker depends on high fees from funds for her living
I like my broker, but she and I differ on what type of fund to be in. I prefer a low-expense fund. She says: Forget expenses if the 10-year returns bear more fruit.

07/03/2008

Inflation-protected bond fund best for 401(k)
Which would be safest and offer the best long-term results for my 401(k) – a stable value fund or an inflation-protected bond fund?

Retirees can pull in more income with 3 levers
Allow me to introduce the Power of Nonfinancial Thinking. This is the kind of thinking that actual people can do.

06/26/2008

You're a 'virtual millionaire,' but so is everyone else
Question: Can I be said to be a millionaire? I have cash-type assets of about $180,000. I have a 401(k) worth about $82,000. My paid-off home is worth about $175,000. I will also receive a defined-benefit pension.

06/19/2008

Build a ladder for a secure retirement
I have around $1.2 million, mostly in equities. My house is paid for. There will be around $300,000 in company profit sharing when I retire, and that has been my ace in the hole for the conservative portion of my investments. If I were to retire soon, what would you advise doing with the $300,000?

06/15/2008

Rise in Medicare premiums to cut retirees' spending
Medicare premiums may soon start crushing retiree spending power. I estimate that many long-lived couples may need to reduce their retirement spending on nonmedical consumption by 13 percent to 26 percent to avoid sharp declines in purchasing power as they get older.

06/12/2008

Always keep return rates in mind
My wife and I are nearing retirement. In his recent letter to stockholders, Warren Buffett said that investment returns from 1901 to 1999 averaged 5.3 percent plus 2 percent for dividends. He described this time period as a very good century. He also said that if expectations are that investment returns for the next 100 years will match the previous 100, then the Dow would have to close at around 2 million in 2099.

06/01/2008

Investors pile up commodities, shun dollars
Lots of explanations are offered for the soaring prices of oil and commodities.

03/09/2008

Broker system costs you years of retirement savings
In the late 1960s, The New York Times declared that we had entered the age of "people's capitalism." The paper cited the broad increase in mutual fund and stock ownership. The declaration was a bit premature.

02/28/2008

Following the basic elements leads to comfortable life
Question: Am I living the American Dream – or will there be a rude awakening down the line? I am 85 years old, happily married for over 60 years with four grown children. Our comfortable home was paid for 30 years ago. We have a nice vehicle and no debts.

02/24/2008

Tiny numbers make foreclosure increases look huge
A recent report on mortgage foreclosure rates in 100 top areas drew a lot of attention. Released by RealtyTrac, a firm that compiles data on home foreclosures, the listing showed the number of foreclosure filings in each city, the percentage of homes being foreclosed and the percentage change from the previous year.

02/21/2008

In rebalancing, listen to your gut
Question: It is time for the annual rebalancing of my portfolio. Two of my funds, Vanguard Precious Metals and Mining and Vanguard Energy, have made 50 percent over the last year.

02/17/2008

Reapply for Social Security to improve income
If you're retired and are interested in having a higher steady monthly income for as long as you live, you have two main options.

Which funds should be in which accounts?
Question: I am nearly halfway through the process of restructuring my investments. I'm changing from a portfolio of more than 25 individual stocks to one of diversified index funds (a la your Ten-Speed or Six-Way Couch Potato Building Block portfolios).

02/10/2008

A subpar idea to solve the subprime loan crisis
Remember Gresham's law? It's the one that says bad money drives out the good money. Well, it also applies to lending.

02/07/2008

Trying to relieve Nest Egg Anxiety
Question: I retired at age 60 with a package. That was 13 months ago. As the package dwindles, I wonder if I should go back to work. Ugh!

02/03/2008

The subprime mortgage crisis began on 9/11
Trundling a suitcase and a computer bag in piercing cold, I head into an office building on 55th Street. I am immediately stopped by an array of security turnstiles and watchful guards.

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