Coalition Urges Labor Department to Protect Retirees’ Nest Eggs

Public interest groups have joined forces in a coalition to prod the U.S. Department of Labor to revise rules requiring financial advisers to act in their clients’ best interests when offering retirement investment advice. SaveOurRetirement.com, a website created by the coalition, is urging the Labor Department to update the so-called fiduciary rule. Without that safeguard, advisers to retirement plans could sell financial products that pay large commissions yet hurt their clients with unnecessary fees, poor returns or excessive risks, the coalition said. >> Enter …

What to Do With Your Money in 2015

As we start the new year, the usual suspects are lining up to forecast market trends and tell us what to do with our money. But rather than sifting through the same old implausible predictions of the short-term future, let me suggest some useful advice, compliments of Wall Street Journal columnist Jonathan Clements. I asked Clements to share his picks of the best advice for those near or in retirement from his new book, Money Guide 2015, and here they are. …

Picking a Financial Adviser? This Tool Can Help

Investors are generally advised to check the background of brokers or other financial professionals before doing business with them. Yet, how many of us really do that, even though it could protect our life savings? It’s safe to say, not a lot. One reason: Even though this information is available online, it’s not been that easy to navigate the multiple websites to find it. >> Should You Invest in Collectibles? Now the U.S. Commodity Futures Trading Commission has created the CFTC SmartCheck, …

‘Boring’ High-Quality Bonds and Why You Need Them

Between mid-September and mid-October, the S&P 500 average sank nearly 150 points, or about 7.4 percent. Many investment pundits now suggest stocks are quite risky and the next great Bear Market could be coming. Suddenly bonds, previously shunned by many investment advisers, are looking more appealing. To better understand how high-quality bonds and bond funds act as a portfolio’s shock absorber during market volatility, let’s go back to the very painful period that ended on March 9, 2009. The stock market had plunged well …

Should You Sell When Your Fund Manager Quits?

So, the star manager of your mutual fund leaves. Should you bail, too? It’s a question on many investors’ minds now after famed bond manager Bill Gross announced Friday he was leaving the company he founded, Pacific Investment Management Co., to start another fund at rival Janus. The Wall Street Journal reported today that investors so far have pulled $10 billion out of Pimco —  and $90 billion more may follow. “You have to be careful not to have a knee-jerk …

Will Interest Rates Rise Next Year? And Should You Care?

When interest rates rise, the value of bonds declines. Many experts are sure that rates will increase next year, but should you worry about that? Why are experts convinced that rates will rise next year? For one, the Federal Reserve announced last week that it will start raising the federal funds rate next year from the near-zero rate of today. The Fed is also tapering quantitative easing, meaning that it’s buying back its own longer-term bonds at a much slower pace …