Managing Bond Risks When Interest Rates Rise
Rising interest rates should not affect the return on a bond you hold to maturity, but may affect the price of a bond you want to sell on the secondary market before it reaches maturity. Mutual funds, ETFs, and UITs are sold by prospectus. Please consider the investment objectives, risks, charges, and expenses carefully before […]
What Do Rising Interest Rates Mean For Your Money?
Although rising interest rates make it more expensive for consumers and businesses to borrow, retirees and others who seek income could benefit from higher yields on savings accounts and CDs. On March 16, 2022, the Federal Open Market Committee (FOMC) of the Federal Reserve raised the benchmark federal funds rate by 0.25% to a target […]
2022 Key Numbers
IMPORTANT DISCLOSURES Dightman Capital does not provide tax or legal recommendations. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be […]
Retirement Investors: This Back Door May Be Closing for Good
In addition to eliminating the conversion of nondeductible contributions from traditional IRAs to Roth IRAs, the proposed legislation includes a similar prohibition on the conversion of after-tax 401(k) contributions (so-called mega-back-door Roth conversions), as well as other retirement-related provisions affecting those with large account balances ($10 million and higher) and high incomes (more than $400,000 […]
Retirement Confidence Remains Strong, Despite Pandemic
Workers who said that they or their spouse participate in a retirement plan were much more likely to have calculated a retirement savings goal than those who do not participate in one. Despite the economic shock of the coronavirus pandemic, American workers and retirees remain largely optimistic about their financial prospects for retirement. In its […]
Common Factors Affecting Retirement Income
When it comes to planning for your retirement income, it’s easy to overlook some of the common factors that can affect how much you’ll have available to spend. If you don’t consider how your retirement income can be impacted by investment risk, inflation risk, catastrophic illness or long-term care, and taxes, you may not be […]
There’s Still Time to Contribute to an IRA for 2020
Making a last-minute contribution to an IRA may help you reduce your 2020 tax bill. If you qualify, your traditional IRA contribution may be tax deductible. And if you had low to moderate income and meet eligibility requirements, you may also be able to claim the Saver’s Credit for 2020 based on your contributions to […]
GameStop, Reddit, and Market Mania: What You Need To Know
At the heart of this story are two very different sets of investors: professional managers of multibillion-dollar hedge funds and a small army of individual investors connected through social media. Over the course of 11 trading days from January 13 to January 28, 2021, the stock of GameStop, a struggling brick-and-mortar video game retailer, […]
Revisiting the 4% Rule
New research suggests that retirees could make larger initial withdrawals, particularly in a low-inflation environment. Saving for retirement is not easy, but using your retirement savings wisely can be just as challenging. How much of your savings can you withdraw each year? Withdraw too much and you run the risk of running out of money. […]
2020 Year End Tax Tips
Here are some things to consider as you weigh potential tax moves between now and the end of the year. 1. Defer income to next year Consider opportunities to defer income to 2021, particularly if you think you may be in a lower tax bracket then. For example, you may be able to defer a […]
