BACK IN THE SADDLE

BACK IN THE SADDLE

  • Posted on: 8 December 2015
  • By: admin

Demystifying The Market: Is It Time To Jump Back In?

For the last few years, everywhere you looked, you saw signs of the recession. In our neighborhoods with foreclosures, in our places of work with layoffs, and in the massive cuts to consumer spending, the doom and gloom message has been very consistent. Due to these factors, many investors have chosen to play it safe when trying to determine where to invest their hard-earned dollars!

Thankfully, the U.S. is very good at making lemonade out of lemons and recent turns in the market are now pointing towards recovery and growth. Some promising changes we’ve seen are:

•    Private-sector job creation and growth continuing
•    Unemployment rate dropping for five consecutive months
•    Interest rates remain low into the foreseeable future
•    Inflation is moderate and historically low
•    U.S. consumers are starting to spend again

While we envision some volatility through 2012 and recommend investing with a more conservative approach during this time, these points are promising for the long-term stability of market investments.

No matter what the market is doing, Americans can no longer put off planning for college, retirement, and the golden years. There is no time like the present to review your personal situation and plan for your future.  If you’re still on the fence about getting back into the investment game, we’d love to speak with you and discuss your ideas and concerns. Contact us today at info@pathlightinvestors.com for more information.

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GIVE UNCLE SAM A RUN FOR HIS MONEY!

GIVE UNCLE SAM A RUN FOR HIS MONEY!

  • Posted on: 8 December 2015
  • By: admin

Smart Moves for the Future can Save Taxes

With tax season upon us, now is the time to make sure you are effectively using investment vehicles to your advantage.  Some strategies may not only save you taxes currently, but also provide you with a more secure retirement in the future.  

When it comes to investing, one way to save on taxes is to open an Individual Retirement Account (IRA).  Traditional IRA investments allow pre-tax money to grow tax deferred, meaning contributions to a traditional IRA reduce your earned income for a given year.  Gains on those investments aren't taxed until the money is actually taken out of the IRA, which is usually upon retirement.

Another option is a Roth IRA, which allows your after-tax contributions to grow tax free, meaning that although you were taxed on your contributions at ordinary income tax rates, you will not have to pay taxes on any funds, including the gains, when they are withdrawn. This is a very attractive vehicle for especially younger investors.

Withdrawals from traditional IRAs can begin penalty free at age 59 1/2, but if money is removed prior to 59 1/2 there is a 10% penalty in addition to the ordinary income tax burden. All 401(k) contributions are made pre-tax, so they effectively reduce your earned income, often resulting in a lower tax bill.

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