Personal Finance

Even Deutsche Bank Thinks GE Is A Hot Mess

When your new CEO admits almost right off the bat that the place is kind of a shithole, you really can’t expect your company to be going too great. And while GE shareholders have come to accept bad results, messy bitches causing ratchet drama and a deep distrust in the long-term recovery process as commonplace, you’ve got to believe that this still hurts… “We believe the chances that GE could be removed from the Dow are increasing as GE continues to face substantial challenges including earnings and cash pressure, tough global power generation markets, aggressive downsizing, shrinking its portfolio, management shake-up and SEC investigations,” Deutsche Bank analyst John Inch wrote Wednesday. “Apart from GE’s other challenges, as the company’s absolute share price has continued to drop, GE ...

An $11 million opportunity: It’s time to think about your estate plan

Here’s a way for financial advisors to strengthen their client relationships: Start a chat about the legacy your client would like to leave for heirs. Such was the focal point of a panel Wednesday at the TD Ameritrade National LINC conference in Orlando. “There is an opportunity for you to get into that conversation,” said Michael Cyrs, a panelist and director of wealth advisory at Savant Capital. “It’s a people conversation: You don’t have to follow the estate-tax nuances we were dealing with in the past.” The Tax Cuts and Jobs Act has opened the door for financial advisors to have more meaningful conversations with their clients about their legacies – and to team up with estate-planning attorneys to update plans. The estate-tax exemption is now a...

What Trump’s address didn’t say about your money could cost you

President Donald Trump’s first State of the Union speech touted higher 401(k) balances bolstered by a soaring stock market and tax cuts intended to put more money in your wallet. Yet the effects on your savings and income may be temporary, experts say. And what was not addressed with regard to retirement savings and tax cuts could have a more meaningful impact on your bottom line. The speech was a “victory lap” for Trump, who is just coming off passage of the Tax Cuts and Jobs Act, according to Scott Greenberg, senior analyst at the Tax Foundation, a non-profit tax policy organization. “The stock market has smashed one record after another, gaining $8 trillion in value,” Trump said in his speech. “That is great news for Americans’ 401(k), retiremen...

Middle America Already Winning Big From Tax Plan As Lowly Workers Get Free Hos And All-You-Can-Eat Dongs

There were a lot of bumps in the road on the way to finally getting the GOP tax plan across the finish line. One persistently pesky problem was explaining how a corporate tax cut and a plan that screams “trickle down” could possibly warrant the “middle class miracle” branding that was slapped on the bill for the purposes of selling it to Trump’s base, which is comprised of working Americans. There were innumerable issues with that branding effort including, but certainly not limited to, numbers and history, two things that are extraordinarily annoying because they’re hard to argue with. The numbers problem manifested itself in independent analysis which showed that by 2027, taxpayers in the top 1% of the income distribution would receive an average tax cut of 0.9% of after-tax income, acco...

These two big budget programs were missing from Trump’s address

Two big items were missing from President Donald Trump’s State of the Union address on Tuesday night: Medicare and Social Security. While these entitlement programs were absent from the President’s speech, together they take up almost all of the government’s mandatory spending. “The harm of neglecting them is they’re underfunded,” said Howard Gleckman, a senior fellow at the Urban Institute’s Tax Policy Center. “There is a cliff we’re going to face in a few decades, at which point the programs won’t have enough to pay their beneficiaries. Real people would lose the benefits they need.” Social Security provides retirement, disability and survivor benefits to qualifying recipients, the bulk of whom are age 65 or older. The Soc...

Trump cites 401(k) gains in speech, yet most workers don’t have one

President Donald Trump touted the strong performance of 401(k) accounts during his first State of the Union address. The reality is that most Americans do not have one. “The great news for Americans — 401(k) retirement pension and college savings accounts have gone through the roof,” Trump said, veering slightly from his prepared speech, in his 80-minute address Tuesday night. Only about one-third of workers participate in a 401(k) plan, according to 2017 research from the U.S. Census Bureau. In fact, just 14 percent of all employers give a 401(k) or other defined contribution plan to their workers. Even at companies where they are offered, only 41 percent of employees contribute. Among employees who do sock away pretax dollars in 401(k) accounts, the average balance was $96,49...

Trump touts 401(k) gains, yet most workers don’t have one

President Donald Trump touted the strong performance of 401(k) accounts during his first State of the Union address. The reality is that most Americans do not have one. “The great news for Americans — 401(k) retirement pension and college savings accounts have gone through the roof,” Trump said, veering slightly from his prepared speech, in his 80-minute address Tuesday night. Only about one-third of workers participate in a 401(k) plan, according to 2017 research from the U.S. Census Bureau. In fact, just 14 percent of all employers have a 401(k) or other defined contribution plan for their workers. Even at companies where they are offered, only 41 percent of employees contribute. Among small business, it’s less likely that a 401(k) is even available. On average, 10 perc...

Should I move my retirement savings out of the market?

I’m well into retirement age, although still working, and have my nest egg of about $500,000 invested entirely stocks. But I’m getting worried about the future of the economy and the market. Should I transfer everything to a safer investment?–J.L. I think you’re absolutely right to question whether keeping 100% of your retirement stash is the right way to go at your age, or for any age at that matter. Yes, the market has given us a terrific ride, with stock prices more than quadrupling since they bottomed out in the wake of the financial crisis. ‘; var storytext = document.getElementById(‘storytext’); var heightToSkip = 0; function resetValues() { totalHeight = 0; targetChildElement = null; } &...

Trump’s speech touts college savings but ignores student debt

President Donald Trump hit on the economy, immigration and infrastructure in his first State of the Union speech. One issue he overlooked: the ever-increasing cost of college. “The stock market has smashed one record after another, gaining $8 trillion in value,” he said in his speech Tuesday. “That is great news for Americans’ 401(k), retirement, pension and college savings accounts.” Yes, balances in 529 savings accounts have been growing, but so are college costs. (See the chart below from the College Savings Plans Network.) “Those same savings accounts are not covering the full cost of college for most students and their families,” said Robert Franek, The Princeton Review’s editor-in-chief. Families with students in four-year private colle...

Puny Financial Giants Finally Standing Up To 88-Year-Old Bully

For decades, Jack Bogle has let Wall Street know what he thinks of it: That the army of besuited money managers crowding the island of Manhattan and city of Boston are beneath his contempt as they literally steal their clients’ money to do a lousy job, all the while literally eating their lunch while doing so—Bogle’s Vanguard Group has gobbled up $3.5 trillion in assets during Bogle’s 80s. Well, the downtrodden aren’t going to take it anymore. Poor little Fidelity Investments, which manages just $2.3 trillion of the $6.2 billion entrusted to it overall, isn’t going to pay for the pleasure of looking stupid at Bogle’s hands anymore. Fidelity, the largest 401(k) plan administrator in the country, will now charge some new corporate customers that hire the firm to run their 401(k) plans a fee ...

GE will likely be dropped from the Dow, Deutsche Bank predicts

General Electric will likely be removed from the Dow Jones industrial average, according to Deutsche Bank.

The 9-year stock rally still has ‘years left,’ says one of Wall Street’s most bullish strategists

The two-day plunge was not the beginning of the end of the stock bull market, says Jeffrey Saut.