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The Jacobs Financial Group, owned and managed by Richard Jacobs, is an independent Registered Investment Advisor firm located in The Woodlands, Texas. The firm provides independent investment advice and asset management to its clients using a fiduciary standard – we serve our client’s interests ahead of own. The firm can be contacted at 281-298-6545 or rjacobs@TheJacobsFinancialGroup.com.
Entering your 50s and behind in your retirement planning goals? Don’t fret. You’ve still got time to get your financial plan back on track.
There are many steps that older investors can take to better prepare themselves financially for retirement. Here are six tips that may help you make the most of your final working years.
Sector funds target specific industries and economic niches to seek above-average returns. With the opportunity for greater returns comes greater risk, as these funds typically are prone to fluctuate in value more than diversified, multi-sector funds.
Sector funds may invest solely in specific industries, such as utilities, technology, financial services, health care, and manufacturing. They may also invest in commodities, such as oil and gold. Additionally, there are sector funds that invest in specific international markets, such as Germany and China.
Many investors look to sector funds to gain exposure to industries that may appear to offer exceptional potential. Top-down… Read the rest
An incentive trust is an estate planning tool that allows the trust grantor to reward heirs for desired behavior. It also allows the grantor to impose appropriate penalties for undesirable activities.
Some common themes contained in incentive trusts:
The IRS audited approximately 1.6 million individual tax returns filed in 2011. That amounts to just over 1.1% of 141 million individual returns filed that year. However, just over one-quarter of those audits involved face-to-face meetings with IRS auditors. The rest were conducted through the mail.
Filers earning less than $100,000 had a 1% chance of being audited. Among filers with income exceeding $200,000, the audit rate was 3.93%; for those earning more than $1 million, it climbed to 12.5%. Self-employed taxpayers who filed a Schedule C and reported gross receipts of at least $100,000 were audited at a 4%… Read the rest
For same-sex couples contemplating marriage, tying the knot confers many legal rights and benefits. Since 2004, nine states and the District of Columbia permit same-sex marriage. But from a financial perspective, such benefits are limited since gay marriages are currently not recognized under federal law. In fact, same-sex marriage has both pros and cons when it comes to finances.
The Good News
For those living in a state that permits gay marriage there are a number of benefits.
Many Americans do not realize that one of the greatest risks to their financial security in retirement may be outliving their money. According to pension mortality tables, at least one member of a 65-year-old couple has a 72% chance of living to age 85 and a 45% chance of living to age 90. This suggests that many of us will need to plan carefully to ensure that we don’t outlast our assets.
The first step in tackling longevity risk is to figure out how much you can realistically afford to withdraw each year from your personal savings and investments. You can… Read the rest
Investors in the hunt for higher yields have to search far and wide and consider avenues they may not have investigated before. One investment type that may be worth a look is foreign bonds and foreign bond funds.
Investing in foreign bonds can have a number of advantages, including that the returns from foreign bonds are typically higher than returns offered via U.S. Treasury securities. However, Treasury securities are guaranteed as to the timely payment of principal and interest, which cannot be guaranteed for many foreign bonds. What’s more, the monetary and budget policies of many foreign nations are often… Read the rest
A margin account can be a valuable tool for investors seeking flexibility in managing their portfolios. Margin accounts offer convenience, sophistication, and an integrated approach that allows you to fully capitalize on market opportunities. But investing on margin isn’t for everybody. It involves elevated risk and is not appropriate for many situations.
How It Works
Like buying a house or car with the help of a loan, investing on margin simply means purchasing securities with borrowed funds. To purchase a stock on margin, you first need to have a margin account with a broker. Depending on the account, different securities may… Read the rest
One of the few positive aspects of the recent recession has been getting Americans to refocus on saving. With so many taking hits due to job losses, investment losses, and home losses, putting together a strategy for savings has become important. But we’ve still got a long way to go. In a recent survey, 71% of respondents said they were saving too little.
So how can you save more? The steps below should help you put a plan in motion.
Step One: Set a Goal
How much should you save? It depends on a number of factors, including:
There is a good possibility that you or your spouse will eventually require some form of long-term care. According to the U.S. Department of Health and Human Services, about 70% of people aged 65 or older will enter a nursing home for some period of time during their lifetimes.
Whether you or your spouse will be among this group is impossible to predict. But it is wise to consider how you might pay for long-term care and whether long-term care insurance (LTC) is a good idea for you.
Long-term care policies are complex and vary widely. But in general, LTC insurance… Read the rest
