You’ve heard the expression, “When the going gets tough, the tough get going.” When it comes to investing for retirement, however, going when the going gets tough isn’t always the right thing to do.
On the same note, going when the going gets easy isn’t always the right thing to do, either.
With the recent news surrounding the Detroit bankruptcy lingering in investors’ minds, the Commonwealth of Puerto Rico has recently been the focus of industry press. The pieces tend to focus on many of the credit negatives of the commonwealth that have been known in the credit community for a long time; specifically, its stalled economy, structural budgetary deficit, high debt and pension liabilities, below-average socio-demographics, and declining population. These realities are represented in the commonwealth’s current general obligation (GO) ratings of Baa3 (Moody’s – 10th highest of 21 ratings), BBB- (S&P – 10th highest of 22 ratings), and BBB- (Fitch – 10th highest of 20 ratings). In addition, all three major rating agencies hold negative credit outlooks for the future of the island’s creditworthiness.
While some of the articles I’ve seen do a great job focusing on the systemic risks posed by the wide ownership of Puerto Rico in mutual funds, the ultimate risk of investors in these mutual funds is the potential for a significant decline in the value of their investment because of the overweight exposure in the funds to the debt of Puerto Rico. Read more
True or false? It doesn’t matter how much an investment goes up or down in value, as long as the average return over time is good.
If you chose “true,” you’re wrong. But you’re not alone. Many investors don’t realize the impact volatility can have on returns over time.
Giving and receiving money between family members takes some care and consideration to make sure everyone’s needs are met. There are tips that can equip you for dealing with family and money situations.
Forget the Joneses. When it comes to saving for retirement, what investors really need is to keep up with inflation. Because bit by bit, year by year, inflation steals away our purchasing power.
For many without employer-provided health care, the Affordable Care Act may offer the first opportunity to purchase affordable insurance. Those with an entrepreneurial spirit (but a family to protect) may be willing to step away from their employer’s coverage and take a chance pursuing their dreams. Even the gap between an early retirement (forced or otherwise) and eligibility for Medicare coverage may no longer be a period of high financial risk.
On October 1, your state’s Health Insurance Marketplace will open its digital doors to health care window shoppers. Whether you’re looking forward to the Affordable Care Act with anticipation, dread, or a shrug, every American will be impacted, whether directly or indirectly.