Beta, in the investing universe, is a measure of risk relative to a chosen benchmark. For example, if a stock has a beta of 1 vs. the S&P 500, it should move just as far up (or down) as the index itself does. The definition and calculation of investment indices have numerous components (see our […]

Retirement is a popular topic of discussion and, in some cases, an item of concern. There have been television commercials of “What is your number?” and “Do you have enough money for retirement?” This Quarter’s newsletter discusses some of the factors that lead to a successful (financial) retirement. These factors can be complex and our […]

Have You Taken Your Required Minimum Distribution Yet?  The April 1st deadline is almost here! Unfortunately, you cannot keep funds inside a Traditional IRA forever; eventually the IRS will require you to take taxable distributions. What is an RMD? During the calendar year you turn age 70 ½ is when the IRS mandates that you […]

Corporate retirement plans have been, historically, either defined benefit (DB) or defined contribution (DC) plans. With a DB plan, the employer is “guaranteeing” a life-long retirement benefit to the employee at the time of retirement. That benefit is usually a function of the years worked at the company and the salary earned over a previous […]

This quarter’s edition of Paragon Perspectives discusses mistakes to avoid in your Individual Retirement Account and some simple steps for late contributions. Individual Retirement accounts (IRAs) have been great savings devices for many individuals.  Contributions have been limited to several thousands of dollars per year; however, rollovers of corporate retirement plans into self-directed IRAs have […]

The December 1, 2014 Wall Street Journal (Encore Section, pg R3) had an interesting article about how people spend time in retirement. The implication was that time spent in retirement was different than time spent when working. That time utilization difference in retirement is intuitively obvious. What is not so obvious, however, is the financial […]

On Monday, October 27, 2014, the Society of Actuaries issued new estimates of life expectancies in the U.S. A 65 year old female has a life expectancy of 88.8 years, an increase of 2.4 years from the 2000 age projection. Males age 65 have a life expectancy of 86.6 years, an increase of 2 years […]

More and more retiring employees are facing the question of whether to take their retirement benefits as a lump sum payment or a life-time monthly payment. The “correct” decision obviously lies with the individual’s particular circumstances (health of retiree and spouse, other financial assets, fund needs, etc.). There are compelling reasons for both scenarios in […]

Individual Retirement Accounts (IRAs) have been a popular savings vehicle for a long time (since 1974). They became more popular with the Economic Recovery Tax Act of 1981. Contributions made into an IRA were usually tax deductible (depending on your income level) and grew tax deferred until money was taken from the IRA. There were […]

Retirement brings many changes. The old adage of “twice as much spouse and half as much money” is humorous; other aspects of retirement are not. In this issue, we discuss some of the planning issues that retirement brings. We also look at what may lie ahead for rising interest rates.The first article discusses longevity. No […]