Terry Savage’s Archives
Below you will find the columns terry has written by date.
Below you will find the columns terry has written by date.
Earnings Season
It’s “earnings season” again – the quarterly period when public companies report their profits, and more. Both anticipation and results impact stock prices. Some companies “disappoint and some “beat” expectations. Unless you’re a seasoned investing pro, the frenzy over corporate earnings reports may leave you a bit confused. Here are the basics, and some definitions:..
Beware of Bonds
Bonds are traditionally viewed as the safest of investments. But that myth may be shattered in the months ahead, whether interest rates rise or fall. So, if you’re looking to hide out from the stock market by buying bonds or bond funds or ETFs, you should have a good idea of the risks involved. A..
The Search for Yield
The stock market cheered signals that the Federal Reserve will cut interest rates this month. There was no complaint from politicians, who see low interest rates as encouraging economic growth. But what about savers? A decision to cut interest rates will send them on a search for higher yields, and encourage some to take risks..
Time for Risk Management
Whether you’re trying to decide how to invest or considering the prospects for a better job, the economic outlook has never been more confusing. Yes, the economy is doing well right now, despite the disruptions of tariffs and uncertainty over global growth. And certainly the stock market, hovering at record highs, encourages optimism. But both..
Cut Student Loan Rates!
Student loans are about to become a big political issue in the 2020 election. That’s a shame because it guarantees that nothing will get done to solve this huge $1.6 trillion problem that not only affects 40 million debtors but also the entire American economy. So, from both a moral and a practical viewpoint, a..
Keeping Score of Your Credit
Your credit score affects almost every aspect of your financial life — not only the rate you will pay on a mortgage or car loan but also the cost of your auto insurance and even your prospects for getting a job. Your credit status reveals quite a bit about your sense of personal responsibility. So..
Beware New “Best Interests” Standard
The SEC has just passed a new regulation called the “best interest standard.” The title of the rule — and the public self-congratulations — are designed to reassure investors that all brokers are suddenly required to put their clients’ interests ahead of their own. In reality, nothing could be farther from the truth! The new..
The Long Run?
People buy lottery tickets with astronomical odds against winning. (I must confess, I do that myself when the jackpot is huge.) After all, it’s a cheap price for a few hours of fantasy. But that’s not how you should approach your retirement investments. Investing requires a long-run perspective. Overall, the stock market has always, in..
Five Tips for College Grads
If you have a child graduating college this spring, it’s quite an accomplishment — not only for them, but for you as a parent. When that baby was born so long ago, surely you gave a bit of thought to how you would be able to raise the child with values, keep your baby safe..
A Lonely Problem
The baby boom generation is getting a new name: The Loneliest Generation. About one in 11 Americans age 50 and older lacks a spouse, partner or living child, according to a recent report in the Wall Street Journal. “That amounts to about 8 million people in the U.S. without close kin,” the Journal reported, “and..
Student Loan Rates Drop — Still Not Great Deal
There’s a bit of good news for those taking out student loans for the 2019-2020 school year, which begins this fall. Rates on new student loans will fall about a half of one percent to 4.53 percent on the most popular Stafford undergrad loans. The rates are set each spring, based on the 10-year Treasury..
Inheriting an IRA
As America ages, it’s likely that more people will inherit substantial Individual Retirement Accounts. What you do next will make a big difference in your own financial future. Yet, few people leave instructions for their named beneficiaries about the best course of action. Fortunately, there are financial planners who are trained IRA experts, taught by..
Congrats, Grad. Now Repay Debt
Congratulations, college grad. Your first challenge is finding a job, and perhaps a place to live. The second challenge is even more difficult: starting to repay your student loans. The time to start thinking about loan repayment is the week after graduation. At the very least, you’ll know how to start the process when your..
Social Security, Medicare Key Facts
Americans are woefully uneducated about Social Security and Medicare — and that creates some expensive mistakes. Here are a few facts you should know. —Waiting until age 70 will increase your monthly Social Security check by 76 percent over claiming benefits when they are first available at age 62. Yet nearly 40 percent of Americans..
Roth Conversions
In a recent column, I mentioned the importance of tax planning for your retirement assets. We are living in a time of relatively low historic income tax rates, and as our national debt grows and political considerations change, it’s not unlikely that tax rates will rise in the future. It’s always been the conventional wisdom..
Consider Disability Insurance
Income tax time brings you face to face with the amount of money you earn — and have left to live on, after taxes. But what if you were disabled and couldn’t work? It’s something no one wants to think about: being alive but incapacitated. But consider the odds. The Disability Insurance Resource Center says..
Taxing Your Retirement
As tax time draws near, Americans are taking a second look at the impact of the new tax laws. For many people, the day of reckoning is proving an expensive one. The tax cut put more money in their paychecks, but the amount withheld for taxes was also reduced. Now, as tax returns are being..
Socially Responsible Investing
If you want your investment dollars to not only make money but to make the world a better place as well, there are now some new and easy ways to make that happen. More than one out of every four dollars under professional management in the United States — $8 trillion or more, and an..
Stock Market Predictions
The tenth anniversary year of this bull market got off to a great start in 2019. After posting the largest one-day point decline in history on Christmas Eve, January proved the Grinch did not steal the stock market. At the end of the first two months this year, the S&P 500 stock index gained 17.5..
529 Plan Costs Compare
Are you paying too much for your 529 college savings plan? If you’ve bought through a broker or adviser, the answer is almost certainly yes. Every state has a “direct-sold” plan that you can access through a website, without paying any commissions, so it has always mystified me why some parents and grandparents pay extra..
