I’ve fielded a number of calls lately from clients over 70 ½ who are required to take a minimum required distribution (MRD) from their tax-deferred accounts before the end of the year. The rules state that everyone who owns a traditional IRA (and certain other types of defined contribution retirement accounts) must begin to liquidate these savings after they reach70 ½ years of age. This is to insure that no one escapes taxation and that the money one accumulates through retirement savings is actually distributed during retirement. The yearly sum is calculated on a formula table that liquidates the entire account over the remaining estimated lifetime of the taxpayer. (more…)

It was another week of battle between bulls and bears. Despite continued bad news however, the markets make head way one grudging step at a time. As it does, more and more investors who have been watching nervously from the side lines will begin to put money in the market. When enough investors are committed the true test will come. (more…)

If that sounds like a dream, wake up America because something of the sort will most likely be needed to get us buying and borrowing again. I expect by June we will see a government-sponsored initiative that will guarantee new consumer loans issued by now-government controlled banks for all sorts of things from mortgages to car loans to credit cards. Interest rates might not go as low as zero but I expect most consumers will be able to borrow at rates never before seen in this country. (more…)

Despite Friday’s blow up of the Detroit bail-out, the massive lay-offs from every corner of America and the revelation of an alleged $50 billion Ponzi-scheme from one of Wall Street’s top brokers, Bernard Mad off, the U.S. market is hanging in there. Can investors continue to shake off bad news and for how long? (more…)

The time has come to consider income investments. Yes, those boring bond and stock funds that provide interest and income in a market I believe will at best do nothing throughout most of next year. Granted, you won’t be the center of attention at your holiday office party but you will be way ahead of the game when it comes to preserving your wealth and earning a decent rate of return. (more…)

In my 28 years on Wall Street I’ve lived through over thirty stock market corrections worldwide. Not once have I been able to call a market bottom. I gave up trying long ago and it has not hurt my performance at all. Here’s why. (more…)

Last night the U.S. Treasury Department leaked the rough details of a plan designed to boost home sales. The scheme would use the weight of government-owned mortgage giants Fannie Mae and Freddie Mac to ‘encourage’ banks to lend money a full point below existing 30 year, fixed rate mortgages. Okay, I admit, that got my attention. (more…)

I am about to say something heretical, even life threatening to the investment community. As markets continue to decline and trillions of dollars of retirement money evaporates, an increasing number of investors, myself included, are taking issue with the argument that a Buy-and-Hold investment philosophy is the best approach for all individual investors over the long term. (more…)

No matter how hard I try to avoid it, the onslaught of depressing news, dire forecasts and plummeting markets beats down upon my head like a winter thunderstorm. Thanksgiving is around the corner. I don’t even care. All I worry about is how to cut corners, make-do and pray that the pink slip doesn’t show up a week before Christmas. (more…)

It was all too orchestrated for me to believe. Thursday’s huge turnaround rush into the markets was just another example of investors trying to identify a bottom. I’ve said it before and I’ll say it again–that is not how bottoms are formed. (more…)