With the recent release of the Big Four Economic Indicators, analysts now have a clearer idea which way the economy is heading for the rest of 2014. Doug Short illustrates the results for Advisor Perspectives. Should investors be discouraged when 2014 returns fall behind the previous year’s performance? According to the global team of strategists at Russell Investments, it depends on your point of view. Stephen Wood explains. The concern shared by many that they may outlive their retirement investments has recently been alleviated. Sally Schreiber looks into a new IRS ruling and how investors can benefit.
The Big Four Economic Indicators: Nonfarm Employment– Last week’s report of 288K new nonfarm jobs was well above the forecast of 212K. Moreover, the unemployment rate fell to 6.1%, beating the expectation of an unchanged 6.3%. The trends support continued economic growth with no recession in sight. http://www.advisorperspectives.com/dshort/updates/Big-Four-Economic-Indicators.php
2014 Mid-Year Outlook Update From Russell Investments– Russell does not predict a recession in 2014, either in the U.S. market or globally. They encourage investors to keep in mind that market returns for 2014, while lower compared to the previous two years, are actually quite average from a long-term perspective. http://advisorperspectives.com/commentaries/russell_070514.php
Retirement Account Participants Can Purchase Longevity Annuities– Under the new rules issued by the IRS, those with IRAs or defined contribution plans will be allowed to use these funds to purchase longevity annuities. Since longevity annuities do not have to start distributions until the participant is 85, they are used as a hedge against the participant outliving his or her retirement savings.
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John R. Day, Bill Ennis, Stephanie Davidson and Matt Heller
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