There’s Still Time to Contribute to an IRA for 2016

There’s still time to make a regular IRA contribution for 2016! You have until your tax return due date (not including extensions) to contribute up to $5,500 for 2016 ($6,500 if you were age 50 by December 31, 2016). For most taxpayers, the contribution deadline for 2016 is April 18, 2017. You can contribute to a traditional IRA, a Roth IRA, or both, as long as your total contributions don’t exceed the annual limit (or, if less, 100% of your earned income). You may also be able to contribute to an IRA for your spouse for 2016, even if your…

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Fiduciary Now, Fiduciary Always

WE ARE ALWAYS COMMITTED TO DOING WHAT’S RIGHT FOR YOU You may have noticed the word fiduciary bouncing around the news lately. The Department of Labor announced last April that financial advisors who provide retirement investment advice would be held to a new fiduciary rule — that is, they would be required to put investors’ interests ahead of their own. What followed was applause in some corners, angst in others, and spirited dialogue and debate all around the room. Now, the fiduciary rule hangs in midair as the new administration has asked the DOL to review the wide-ranging implications if…

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Indexing vs. Evidence-Based Investing

Many investors realize that an evidence-based investment approach offers many benefits when compared with an active investment approach. Evidence-based investing involves buying and holding market components, whereas an active investor or fund manager tries to pick the next winning stock or time where the market is headed next. An evidence-based approach offers these major benefits: By holding entire market components, the investor maximizes the benefits of diversification. By “tilting” the portfolio to riskier or less risky components, the investor can expect to capture the highest market return given his or her risk tolerance. The investor maintains control over his or…

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2016 Market Review

In 2016, the US market reached new highs and stocks in a majority of developed and emerging market countries delivered positive returns. The year began with anxiety over China’s stock market and economy, falling oil prices, a potential US recession, and negative interest rates in Japan. US equity markets were in steep decline and had the worst start of any year on record. The markets began improving in mid-February through midyear. Investors also faced uncertainty from the Brexit vote in June and the US election in November. Many investors may not have expected global stocks and bonds to deliver positive…

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Active vs Passive Investing

What does it mean to be an active investor versus a passive investor? Siena Wealth Advisors invited Larry Swedroe to discuss his book Think, Act and Invest like Warren Buffet. Larry answers what it means to be an active investor vs a passive investor and what Warren Buffet says about the topic.

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Prediction Season

In the coming weeks, investors are likely to be bombarded with predictions about what the future, and specifically the next year, may hold for their portfolios. These outlooks are typically accompanied by recommended investment strategies and actions that are aimed at trying to avoid the next crisis or missing out on the next “great” opportunity. When faced with recommendations of this sort, it would be wise to remember that investors are better served by sticking with a long-term plan rather than changing course in reaction to predictions and short-term calls. PREDICTIONS AND PORTFOLIOS One doesn’t typically see a forecast that…

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