Newsletters 2013

The share of overall U.S. exports for companies with fewer than 500 employees rose steadily from 27% in 2002 to 34% in 2010. The number of small and midsize enterprises that export also reached a record high of 293,000, and roughly 70% of all exporting companies have 20 or fewer employees.1–2 A relatively weak dollar […]

In 2012, total health-care costs for an American family of four covered by an employer-sponsored PPO insurance plan averaged $20,728. Employers contributed $12,144 of the total and employees were responsible for $8,584 (through payroll deductions and out-of-pocket expenditures).1 Rising health-care costs are the main reason that more Americans are finding medical plans with higher deductibles […]

As people work longer, they often carry major financial responsibilities, such as mortgages and college loans, into their later years.1–3 Someone who has high medical expenses or a spouse who no longer works may have to shoulder a heavier load than a younger person. If you’re still working, have you considered what might happen if you […]

It’s not a good sign when people raid their retirement plans to pay bills, college tuition, or auto repairs, but more workers have been borrowing from their accounts or taking hardship withdrawals in the past few years. At the end of 2010, 28% of active 401(k) participants had outstanding account loans, and another 7% took […]

As the financial crisis grew in severity from 2006 to 2008, U.S. investors moved more than $1.5 trillion into money market mutual funds as a “flight to safety.” Over the next two years, cash flowed out of these funds almost as quickly as it flowed in when investors rushed to purchase growth-oriented securities in the […]

Spanning more than 900 miles wide, Hurricane Sandy was the largest tropical weather system ever recorded in the Atlantic Ocean. The deadly storm devastated a number of communities when it came ashore along the heavily populated coastline of New Jersey and New York in late October.1 High winds and widespread flooding also shut down public […]

About two-thirds of small-business owners fear that they are financially unprepared for retirement, yet one-third of small-business owners do not have any type of personal or business-sponsored retirement plan in place.1–2 If you are worried about your retirement prospects, it may be well worth the effort to divert a percentage of your earnings into a […]

Publicly traded companies are required to report their financial results to regulators and shareholders on a quarterly basis. Earnings season is the often-turbulent period during which most companies must disclose their successes and failures. An earnings surprise — whether profits come in above or below the stock market’s expectations — can have an immediate effect […]

The number of Americans aged 90 and older almost tripled between 1980 and 2010 and is expected to quadruple by 2050.1 This trend reflects the fact that life spans have been increasing steadily since 1900 (see chart). Of course, life expectancies represent the average number of years someone of a certain age is expected to live. You […]

The London Interbank Offered Rate, commonly known as Libor, has been in the news this year because of allegations that a number of banks tried to manipulate it during the 2007–2009 financial crisis. If you are not familiar with Libor, you may wonder what it is and how it might affect your own financial situation. […]

The beginning of the year is a time when many people reflect on the past and look forward to the future. It may also be a good time to review your beneficiary designations to make sure they reflect your current wishes. This is especially important if there have been changes in your life, such as […]

The Patient Protection and Affordable Care Act (ACA) has been the subject of speculation and uncertainty since it was passed by Congress in 2010. Nonetheless, the law’s provisions have been enacted according to a specified timetable, and after surviving legal and political challenges, the ACA enters a pivotal phase of implementation in 2013. This may […]

Not long ago, small businesses may have found it difficult to compete with larger companies, especially those with the financial resources to develop or purchase more advanced technology. In the last couple of years, however, innovative and relatively inexpensive apps for tablet computers may have helped some small businesses save time, increase productivity, and reduce […]

  It may not be pleasant to think about the possibility of being unable to take care of yourself, but about seven out of ten people over age 65 are expected to need some form of long-term care during their lifetimes.1 Many people might be able to stay in their own homes and receive care […]

More than one-third of retirees lack confidence that they will have enough money to live comfortably throughout their retirement years.1 Committing to a savings strategy during your working career could go a long way to help alleviate this concern, but it’s also important to make sound decisions when withdrawing assets from the portfolio you worked so […]

As of March 1, 2013, paper Social Security checks will be a thing of the past, and all retirement and disability payments (with minor exceptions) will be made electronically. Beneficiaries may choose to receive their monthly payments by direct deposit to a bank or credit union account or to a Direct Express® debit card. The […]

As an investor, you probably own mutual funds and have an understanding of how they work. However, you may not have considered that the vast majority of mutual funds are open-end funds that don’t restrict the number of shares but rather issue and redeem them in response to investor demand.1 You might want to expand […]

The American Taxpayer Relief Act of 2012, approved by Congress on January 1, 2013, left current income tax rates in place for most households. However, it raised taxes on high earners for the first time in about 20 years.1If a deal had not been struck, federal income taxes were scheduled to return to higher pre-2001 […]

In a 2012 survey, 73% of annuity owners said annuity investments are a critical part of their retirement funding strategies, and 63% said market volatility makes them more likely to consider buying an annuity.¹ When saving for retirement, some workers who are concerned about stock market volatility may turn to fixed-income investments, but the current […]

According to the 2010 census, people with special needs make up nearly 20% of the U.S. population.¹ Furthermore, nearly 20 million American families are raising children with disabilities.² Taking care of a loved one with special needs can be an expensive proposition. For example, the lifetime care of a child with autism could cost an […]

A will is a good starting point to help ensure that your assets are passed on to your heirs according to your wishes. However, it’s also important to specify beneficiaries for financial accounts and insurance policies on the appropriate forms, which may supersede instructions in a will. In any document distributing assets to your heirs, […]

The 2006 film Failure to Launch told a humorous story of an adult son who couldn’t seem to leave his parents’ home. Although the plot was fictional, this scenario has become more common in real life — about three in 10 Americans aged 25 to 34 either live with their parents or have done so in recent […]

One common rule of thumb in developing a retirement savings strategy is that your accumulated savings and other sources of income will need to replace about 80% of your pre-retirement income. This assumes that retirees may be able to maintain their standard of living with less income because their taxes could be lower, there would […]

The collapse of the U.S. housing market helped drive the economy into the worst recession since the Great Depression. Unlike previous recessions, however, the housing sector lagged as the broader economy began to grow, holding back what might have been a stronger recovery. That may be changing. Residential fixed investment — a measure of private […]