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Print Only The American Investor – Editorial CalendarA Newsletter for High-Net-Worth IndividualsJuly 2012
Growth of Health Spending Declines
Total U.S. health-care spending rose 3.9% in 2010 following a record-low increase of 3.8% in 2009. By comparison, health-care spending often grew by more than 10% annually during the ‘80s and ‘90s.
Inherited IRAs Come with Critical Choices
Consider the Possibilities and Pitfalls
People who inherit an IRA have the opportunity to benefit from continued tax deferral of IRA assets, but some withdrawal options depend on the heir’s relationship to the original owner. This article explains some common strategies for spouses, children, and others to help maximize their inherited assets.
Following the Leading Index
Economists Shake Up Mix of Indicators
The Conference Board’s Leading Economic Index is designed to assess the U.S. economic outlook for the next three to six months. In January 2012, the 10 indicators that make up the index changed for the first time since 1996. Read about what changed and how the revised index may better forecast economic turning points in the future.
The ABCs of Business Structure
Old and New Ways to “Benefit” from Incorporation
Small-business owners can adopt a number of business ownership structures for tax and legal purposes, such as sole proprietorships, partnerships, and LLCs. This article looks at some of the potential benefits and costs of S corps and C corps.
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June 2012
Examining the Employment Situation
Nonfarm payrolls rose by 200,000 at the end of 2011, marking the sixth straight month that the economy added at least 100,000 jobs. Accompanying chart shows the rise and fall of nonfarm payrolls since January 2008.
Yield-Seeking Strategies in the Spotlight
Why Chasing Dividends Could Be Riskier Than You Think
Given the low yields offered by U.S. Treasuries and other fixed-income instruments, some investors may be exploring dividend-paying stocks as an alternative. This article explores how dividend-paying stocks could be an option for equity investors who are uncomfortable with high market volatility.
Following the Federal Reserve
Policy Shifts Send Central Bank into New Territory
This primer on the central bank discusses the Fed’s recent policy moves, including the unprecedented actions it has taken to help prop up the banking system and spur the economy in the wake of the financial crisis, and how Chairman Ben Bernanke has promoted greater Fed transparency.
What Is Your Business Worth?
Looking Ahead May Require More Than a Guess
The market for selling small businesses improved slightly in 2011, but buyers still had the upper hand. This article addresses some reasons why a precise professional valuation could be useful for effective business, estate, and retirement planning.
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May 2012
Who Holds Our National Debt?
Outstanding debt has grown to more than $14.7 trillion. Accompanying chart provides a breakdown of U.S. and foreign entities that hold U.S. treasury securities.
Rebalancing World Trade
Why the U.S. Strives to Expand Exports
Healthy U.S. exports have been an important contributor to economic growth during the recovery. Investors may be interested in following some important developments in the international trade arena.
Socially Responsible Investing Joins the Mainstream
Portfolio Fundamentals Still Apply
Assets in socially responsible investments (SRIs) have climbed in recent years as more investors seek to invest according to their personal beliefs. This article looks at the different types of socially responsible, green, and sustainable investments available and reminds readers to consider traditional portfolio fundamentals when selecting SRIs.
Hanging the “Help Wanted” Sign
Costs to Consider When Hiring New Employees
Business owners need to consider not only wages when hiring new staff, but also the potential costs involving benefits, recruiting, training, and compliance. Accompanying chart shows median recruiting costs per hire, by industry.
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April 2012
The ABCs of Credit Quality
Investment-grade bonds (BBB or higher) account for roughly 77% of outstanding corporate debt. Accompanying chart looks at the breakdown of the total U.S. corporate bond market.
Taking a Closer Look at Corporate Bonds
Why Healthy Companies May Be Worth Considering
Many U.S. corporations are in a strong position due to solid earnings and large cash holdings. Largely because of that, the frequency of corporate bond defaults declined last year. This article focuses on the appeal of corporate bonds and how ratings typically impact bond yields and prices.
Designating Retirement Plan Beneficiaries
A Simple Form Often Plays a Major Part in Estate Conservation
Investors hold much of their personal wealth in tax-advantaged retirement accounts. For investors who have money in a 401(k) or an IRA, a beneficiary form could be one of their most important estate conservation documents, because these designations typically supersede instructions in a will.
Small Businesses Face Costly Cybersecurity Threats
Tips to Help Defend Your Business
For many small businesses, the Internet is an important tool for marketing, conducting business, and accepting payments, but cybersecuity risks are growing. Forty percent of all targeted Internet attacks are now directed toward companies with fewer than 500 employees. This article provides tips to help small-business owners shore up their online defenses.
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March 2012
2009 Estate Tax Bill: $21 Billion
Because of the $3.5 million estate tax exemption in effect that year, fewer than 34,000 estate tax returns were filed in 2009. Here’s a graphical look at assets reported as a percentage of gross estates.
Understanding the Appeal of Share Buybacks
Cash-Rich Companies May Prefer to Repurchase Stock
The amount of money devoted to corporate stock buybacks surged throughout 2010 and 2011 as large companies sought ways to spend their cash stockpiles and reward shareholders. This article looks at how corporate buybacks work, why they have become more common in the current economic climate, and what they typically mean for investors.
A Permanent Policy May Provide More Than Life Insurance
Tax Benefits Offer Incentives to Save
More than half of all life insurance assets are owned by the wealthiest 10% of families, which suggests there is often a place for life insurance in the financial strategies of affluent households. Permanent life insurance provides not only a death benefit that may never expire (as long as the premiums are paid) but also a savings or investment component that can be accessed during the policy owner’s lifetime. This article considers some possible benefits of the cash-value component of permanent life insurance.
Preparing to Turn the Corner
Buy-Sell Agreement May Help Ease Transition
What happens to a multiple-owner business when one of them chooses to retire or must leave suddenly for some other reason? Death, disability, divorce, and bankruptcy are just a few of the events that can affect one owner and threaten the future of the business. This article discusses the reasons why it may make sense for small businesses to have a buy-sell agreement in place and describes several basic types of agreements.
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February 2012
Accounting for Retirement Assets
Retirement plans account for about 60% of the assets of U.S. households (with $100,000+ to invest). Accompanying chart looks at average holdings in IRAs and 401(k) plans, by net worth.
Understanding the Rise of Exchange-Traded Funds
Flexible ETFs May Offer the Best of Both Worlds
Exchange-traded funds, once a relatively unknown niche, are among the fastest-growing investment vehicles. Total ETF assets exceed $1 trillion and account for about 40% of U.S. equity market trading. ETFs combine the diversification of mutual funds with the liquidity of individual investments, which is one reason why they have gained attention from investors in recent years. This article explains how exchange-traded funds work, their characteristics, and the role they might play in an investor’s portfolio.
Rethinking the Role of Household Debt
Controlling Debt Could Help Improve Retirement Prospects
Many people aspire to pay off their home mortgages before retirement, but the housing situation and a weak economy have taken a toll on the finances of many older Americans. Thirty-nine percent of households aged 60 to 64 had first mortgages in 2010, compared with just 22% in 1994. There are some compelling reasons why pre-retirees might want to consider maximizing their retirement plan contributions and avoid carrying large amounts of debt into retirement.
Lessons from a Perilous Year
Be Prepared to Recover If Disaster Strikes
In retrospect, 2011 was a formidable year for catastrophes, including a devastating tornado and widespread floods in the Midwest, wildfires in the Southwest, and Hurricane Irene’s ravaging of the East Coast. Small businesses can be hit hard when extreme weather or a natural disaster causes damage or forces a temporary closure. This article considers the importance of adequate insurance protection and ways to help reduce uninsured losses.
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