Tag Archives: retirement

Improving The Way You Invest Before Thanksgiving!

Holidays are traditionally a busy period, but they can also present opportunities for the savvy entrepreneur to realize bigger returns. Timing is everything, however, as investors will need to get in as low on the upswing as possible to enjoy the best gains. Here, you can learn some important information for the modern American entrepreneur to save and invest money in a short period of time.

Two of the strongest days for the equity markets are the day before and the day after Thanksgiving. Since 1950, the S&P index has experienced an uptick 68.18 percent of the time, with the average gain holding at 0.71 percent.

E-commerce sales are growing steadily, and are taking a bigger bite out of bricks and mortar shopping year after year. In 2015 online sales accounted for 34 percent of holiday shopping, in 2016 the numbers were at 36 percent. Investors looking for easy gains can certainly take advantage of the shopping frenzy phenomenon occurring every year around the Thanksgiving holiday.

Thanksgiving is important to many industries, such as transport, and the food industries, but traditionally it holds little sway over the stock market results in general. It’s the day after, Black Friday, which holds the most clout. Analysts keep a close eye on the retail spending activity that occurs on this day, as it can determine the financial fate of retailers, big and small.

For many retailers, Black Friday can make or break their year, as many depend on the volume of sales on this day to push their ledgers into the black.

It’s also a special day for investors, as Black Friday always shows lots of promise for improving returns. Hold on to your retail merchandiser stocks for now, but be prepared to move on Black Friday to realize some juicy profits.

Also, hold on to U.S. Equities and equity exchange-traded funds as probability indicates that prices will nudge higher just before, and just after the Thanksgiving holiday.

Transportation also sees a huge upswing in business, as the US enters the gift-giving season and packages start to criss-cross the country by the millions. FedEx, and United Parcel Service are well worth a look for getting in before the rush.

The gloom and doom of 2008 hit the leisure industry particularly hard, but improvements have been seen since then. People have become more willing to open up their wallets to pay for a few of life’s little luxuries, and are willing to travel to do it.

Holidays have always been the travel industries most active months and the cruise industry, in general, is starting to see some upward momentum.

It may feel like the holiday season is some way off, but time has a bad habit of passing by unnoticed and the holidays will be upon us before we know it. Now is the time to start preparing your portfolio, so you are in a good position to take advantage of any upward movements.

Do you have a 401k from a prior employer?

A 401k plan – especially if you were with a company that had matching grants – can represent a substantial portion of your retirement savings. Preserving this asset is fairly simple but there are several ways for an employee to do so.

In a similar vein, employers should consider the ways they can help a new employee make the 401k rollover transition as easy as possible. Here is a quick rundown on the most important things to know, but still you should always consult an expert before making any decision concerning your 401k.

Advice for employees – As an employee with a 401k from a previous employer, you have two viable options – move the account to your new employer’s plan or establish a self-directed one. If you are an inexperienced investor or simply do not have the time to manage your 401k assets, by all means, take advantage of the rollover option. On the other hand, if you are a seasoned investor and do not like the fund choices offered by your new employer, opt for self-directing your monies.

Advice for employers – A matching 401k plan – behind a good medical plan – is one of the best benefits you can offer a potential employee. Offering one not only helps to attract the best candidates but also serves to retain them over the course of their employment. Obviously, a good transition process will aid in the transfer of a previous plan. Consult with a professional benefits firm to establish the most employee-attractive but still cost-effective 401k plan for your company.

A final word of advice – Always proceed with caution when making this decision as it will have a significant effect on your financial future. Some factors to consider include your age, how long you have until retirement, your risk tolerance and the amount of your assets. In fact, it never hurts to approach an expert to gain some context for your ultimate decision.

If indeed you are looking for further information on the benefits of 401Ks as either an employer or employee, please contact the experts at Lewis & Palmer Benefits. We can be found online at LPBenefits.com or reached directly at 954-308-7204.

What retirement plan options are best for you?

There are over a half-dozen common types of retirement plan options available – not to mention the more esoteric ones. Here is a quick primer on the most common ones and which will be best for your particular situation:

IRA plans – Individual retirement plans (IRAs) are the easiest retirement plan for a company to establish, as the employee is the only one contributing. In essence, it is a tax-deferral strategy. Your money grows tax-free today but you will have to pay tax when you finally distribute the proceeds.

401(k) plans – Easily the most popular type of retirement plan around today, a 401(k) retirement plan allows employees to make pre-tax contributions to their retirement account that are usually matched to some degree by the employer. The retirement account also grows tax-free until distribution of the assets at retirement.

4003(b) plans – Similar to a 401 (k) this type of plan is only suitable for certain eligible employees of tax-exempt organizations, public schools, and certain religious organizations. Again, the employee can contribute a specific percentage of their salary to the plan and have it matched by the employer.

Profit sharing plans – Profit sharing plans are beneficial to both the employee and the employer as benefits accrue depending on how well the company performs during the previous year. In addition, employers are free to adjust the terms while employees can take the fruits of their labors with them if they decide to leave the company.

SIMPLE plans – Designed for small businesses – a company must have 100 employees of less – a Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) is a comparatively easy way for small businesses to set up an affordable retirement plan.

SEP plans – Simplified employee plans (SEP) are another easy – read that, paperwork-free – way to establish retirement accounts for employees. In short, employers make contributions on a tax-favored basis to individual retirement accounts (IRAs) that are owned by the employees

Without a doubt, retirement plan options can be quite confusing to the uninitiated or inexperienced. For more detailed information on them, please contact the experts at Lewis & Palmer Benefits. We can be found online at LPBenefits.com or reached directly at 954-308-7204.