Currency Hedging?  Individual Investors Shouldn’t Bother

Currency Hedging? Individual Investors Shouldn’t Bother

MANISHA THAKOR: As it has been so frequently noted in the financial press, last year the U.S. dollar appreciated significantly against most foreign currencies, including the widely quoted benchmark euro. For investors with a portion of their portfolio in unhedged international stocks, this caused some short-term pain. For illustrative purposes, let’s expand the discussion beyond the euro to examine a broader basket of foreign currencies against which to assess the U.S. dollar’s movement relative to foreign currencies. Going back to 1998 with MSCI data, you can observe wide swings–in both directions–on an annual basis. However, the average return was close to zero. That means, over the long run, currency risk typically washes out, making long-term returns the same whether you hedge them or not. If, on the other hand, you are focused on maximizing returns in any one-year period, the urge to hedge can be strong. In 2014, for example, the U.S. dollar was up about 10% relative to its benchmark. U.S. large-cap stocks, as represented by the S&P 500, were up roughly 14% in 2014. International stocks, as represented by the MSCI EAFE, were down about 4%. Had that international exposure been hedged, an investor’s international return would have been up close to 6%. Click here to continue reading....
Retirement Tips for Singles

Retirement Tips for Singles

Let’s face it, saving for retirement isn’t easy. It may be even tougher when you’re single. According to the 15th annual Transamerica Retirement Survey published last year, 45 percent of unmarried workers age 50 and older do not have a retirement strategy, compared with 36 percent of older married workers. If you have never been married, or are divorced or widowed, these three strategies can help you keep your finances on track as you plan for retirement. Continue Reading.   By clicking on any of the links above, you acknowledge that they are solely for your convenience, and do not necessarily imply any affiliations, sponsorships, endorsements or representations whatsoever by us regarding third-party Web sites. We are not responsible for the content, availability or privacy policies of these sites, and shall not be responsible or liable for any information, opinions, advice, products or services available on or through them. The opinions expressed by featured authors are their own and may not accurately reflect those of the BAM ALLIANCE. This article is for general information only and is not intended to serve as specific financial, accounting or tax advice. © 2016, The BAM...
Are You Financially Ready for Retirement?

Are You Financially Ready for Retirement?

Researchers and others say only half of households in the USA are financially prepared and ready for retirement. The other half, not so much. Other research, however, shows that only one in 10 households — if you factor in less spending after your children move out and falling expenses in retirement — are at risk of not enjoying the same standard of living in retirement as in their working years. So who’s right? And, more importantly, does it matter to you? The short answer, in a way, is that it doesn’t matter who’s right. What matters, say experts, is whether you are financially prepared for retirement. And to do that, you might need to do some number crunching. Here’s a look at the some of the more common ways to tell if you have enough money socked away for your golden years. To continue reading please click here.   By clicking on any of the links above, you acknowledge that they are solely for your convenience, and do not necessarily imply any affiliations, sponsorships, endorsements or representations whatsoever by us regarding third-party Web sites. We are not responsible for the content, availability or privacy policies of these sites, and shall not be responsible or liable for any information, opinions, advice, products or services available on or through them. The opinions expressed by featured authors are their own and may not accurately reflect those of the BAM ALLIANCE. This article is for general information only and is not intended to serve as specific financial, accounting or tax advice. © 2016, The BAM...
Saving for Kids’ College Trumps Parents’ Retirement

Saving for Kids’ College Trumps Parents’ Retirement

Parents have spoken: paying and saving for college is affecting their retirement planning. Two new surveys indicate that the surge in college costs is impinging on Americans’ retirement finances.  One survey, by the research firm Hearts & Wallets, found that boomer parents who support their adult children are more likely to delay retirement than parents of financially independent offspring.  The second survey, by the mutual fund manager T. Rowe Price, found that half of parents are willing to delay retirement or dip into their retirement savings to fund college. To see the surveys and continue reading please click here.    By clicking on any of the links above, you acknowledge that they are solely for your convenience, and do not necessarily imply any affiliations, sponsorships, endorsements or representations whatsoever by us regarding third-party Web sites. We are not responsible for the content, availability or privacy policies of these sites, and shall not be responsible or liable for any information, opinions, advice, products or services available on or through them. The opinions expressed by featured authors are their own and may not accurately reflect those of the BAM ALLIANCE. This article is for general information only and is not intended to serve as specific financial, accounting or tax advice. © 2016, The BAM...
Wall Street Banks’ Mutual Funds Can Lag On Returns

Wall Street Banks’ Mutual Funds Can Lag On Returns

By NATHANIEL POPPER, NYTIMES.COM,  APRIL 12, 2015 Facing challenges on all fronts, Wall Street banks are pinning some of their hopes on a relatively simple business opportunity: creating mutual funds for ordinary savers. Over the last few years, an expanding line of mutual funds created by the likes of Goldman Sachs and JPMorgan Chase has been drawing billions of dollars from investors looking to earn a good return on their retirement money. For the banks, the fees that the funds generate have been among the few consistent bright spots of growth in a time of retrenchment on Wall Street. There is, though, one big problem with all the growth: History has not shown these banks to be particularly good at managing mutual funds, and their clients have paid the cost. To continue reading please click here. By clicking on any of the links above, you acknowledge that they are solely for your convenience, and do not necessarily imply any affiliations, sponsorships, endorsements or representations whatsoever by us regarding third-party Web sites. We are not responsible for the content, availability or privacy policies of these sites, and shall not be responsible or liable for any information, opinions, advice, products or services available on or through them. The opinions expressed by featured authors are their own and may not accurately reflect those of the BAM ALLIANCE. This article is for general information only and is not intended to serve as specific financial, accounting or tax advice. © 2016, The BAM...