Rockwood Wealth Management

10/31/2024

"Retirees or people approaching retirement who have accumulated large balances in accounts with pretax contributions could find themselves in an unexpectedly high tax bracket once they need to begin taking required minimum distributions at the age of 72 (age 73 for those who were 72 or younger in 2024), especially if they also have other taxable income streams, such as a pension."

These retirement savings accounts, which are often pitched to young investors, can be a good option for older and retired workers.

01/25/2023

"Lack of specific knowledge about the future is a fact of life. Guessing, or betting wildly, isn’t a prudent solution.

Instead, diversify. Hedge your bets so you are prepared whether specific markets move up or down, and be ready to ride out extended losses, like those of 2022. This strategy has been painful this year, though it has paid off over longer periods."

Wall Street’s market forecasts for 2023 are worthless, our columnist says. But the long view is much clearer.

10/08/2020

Also "Moody's Analytics found that Biden's economic proposals, if enacted, would create 7.4 million more jobs than would Trump's. The economy would return to full employment in the second half of 2022, nearly two years earlier than under Trump's plan, Moody's said."

President Donald Trump is once again warning voters that Democrats would "shut our economy and jobs down" if they win in November.

10/04/2020

Retail traders tend to be "late to the party," are vulnerable to FOMO and are overconfident in their abilities.

Bored at home, more people are turning to the stock market for entertainment and profits. But the average day trader loses money.

05/08/2020

"The next legislation, which will take shape later this month, could include another round of funding for the small business loans but would likely come with changes to the program to reflect the more protracted collapse in business activity."

Business owners who took out loans under the Paycheck Protection Program thought converting them to grants would be easy. It’s not.

04/29/2020

"Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves."
-Peter Lynch

03/23/2020

This week!

Take home 3 wines from Spain and Portugal for $49:
- Ulls de Mel , Penedes region 2018 from Spain (Natural wine) white
- Marques de Rincon Garnacha 2014 from Spain, red
- Romaneira Douro 2015 from Portugal, red.

More daily offers to follow!

03/17/2020

When things look their bleakest, a reminder that panic selling is one of the worst things you can do with your retirement savings.

During a market downturn, your emotions actively try to convince you to do irrational things that go against the strategic investment plan you laid down when things were less emotionally charged. Don't fall for it.

03/11/2020

A slightly tired( but still true) adage..."It's not timing the market but time in the market."

Timing the market is a game for professionals, not amateurs. And most professionals are terrible at it too.

03/09/2020

Coronavirus pandemic may very well cause a global recession due to the impact on both supply and demand. Unfortunately the Fed and Congres may not be able to do much to help.

Consequences will linger even after the virus dissipates.

03/04/2020

"My view of markets was shaped long ago by a classic analysis by Robert Shiller — who later won a richly deserved Nobel Prize — did of the huge October 1987 stock crash, which came out of the blue. After the fact, people tried to come up with various explanations of the crash, but Shiller managed to interview a large number of traders in real time, as the crash was happening. He found, basically, that traders were selling because other traders were selling; it was essentially a self-reinforcing selling panic.

What happened Monday was basically a self-reinforcing buying panic."

On putting too much faith in central bankers.

02/25/2020

There is a gem in Buffett’s annual letter, which was released over the weekend, that nobody is talking about. He writes: “Anything can happen to stock prices tomorrow. Occasionally, there will be major drops in the market, perhaps of 50% magnitude or even greater.” He continues that the combination of what he calls “The American Tailwind” and “compounding wonders” will make equities “the much better long-term choice for the individual who does not use borrowed money and who can control his or her emotions. Others? Beware!”

Amid a 10-year-plus bull market, many investors can’t come to terms with the idea that there could be a substantial decline in the stock market.