If you enjoy good writing, we recommend all of Warren Buffett's annual Berkshire Hathaway shareholder letters, dating back to 1965. While financial reports are rarely the stuff from which dreams are made, Buffett's ability to crystallize investing wisdom is remarkable. His most recent letter, covering 2016, was no exception, including this powerful insight about market downturns:
Whether it's saber rattling from North Korea, a possible U.S.-China trade war, or uncertainty about taxes and health care policy emanating from Washington, there is plenty of risk to go around in our world.
We have a deep commitment at our firm to what is known as evidence-based investing. When it comes to helping our clients build and protect their wealth, we think data win out over intuition every single time. But what exactly does evidence-based investing mean, and why does it matter?
A recent study by Merrill Lynch and Age Wave found that the cost of retirement exceeds $700,000 on average, easily surpassing the costs of buying a home or paying for college. While this number probably seems daunting, it may be a comfort to know that setting aside even small amounts of money for retirement can have a big impact on your future nest egg.
After having saved for retirement for so many years, some people don’t realize that eventually they will have to start taking distributions—or be hit with tax penalties. The rules surrounding these forced withdrawals—known as required minimum distribution, or RMDs more colloquially—are not new or complicated. But they are important to understand so you don’t end up paying more in taxes than you have to.