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Rising Healthcare Costs in Retirement: Are You Prepared?

The secret to a comfortable retirement is to have more money on hand in retirement than you end up spending. But that’s not always easy to do, and every retiree’s greatest fear is running out of money in retirement. That means that to really be secure in retirement you’ll have to build up as large a nest egg as possible. But even if you do that you’ll still have numerous difficult decisions to make. Probably the greatest unknown when it [...]

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New Front in Trade War Is Bad for Europe But Good for Gold

With the World Trade Organization ruling that the European Union unfairly subsidized Airbus, a new front will soon be opening in the worldwide trade war. The United States will now be able to retaliate against the EU by placing tariffs on EU goods. But that isn’t a victory for US consumers, who now will face higher prices on many goods imported from Europe. While the initial tariffs are expected to fall on Airbus parts, imported wines and liquors, and other [...]

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Gold to See Price Growth in Coming Weeks as Chinese Demand Rebounds

Gold has seen a slight retrenchment in price this week as China begins its “Golden Week” surrounding the October 1st national holiday. This period of travel and holidays sees a slowdown in the Chinese economy, which as the world’s second-largest results in an impact on many world markets. Among those is the gold market, which for the last several years has seen increased demand from China. Gold price patterns have showed a consistent pattern for the past several years, in [...]

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The End of the CBGA Is a Win for Gold

For over 20 years central banks around the world have collaborated in planning sales of gold through the Central Bank Gold Agreement (CBGA). Central banks at the time of the agreement’s adoption were net sellers of gold, but the sale of gold by any individual central bank would have depressed the price of gold, thus leading to lower prices for other central banks looking to sell gold. Rather than selling willy-nilly into world markets, central banks decided to collude [...]

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China’s Massive Money Creation Is a Threat to the World Economy

So much focus has been placed on China’s economic growth and its role as a major trade partner, but relatively little focus has been placed on how that has come about. China’s economic growth is in large part due to money creation, meaning that its enormous economic growth is ultimately unsustainable. Some of that monetary creation has been the result of importing inflation from the United States, while much of it has occurred in recent years as China tries [...]

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How Should Millennials Invest for Retirement?

There’s a lot of retirement advice out there that is just plain dated. Much of it is focused on those who are already in their 40s and 50s and have sizable nest eggs already. And even more of it is written from the perspective of those who came of age during the stock market heyday of the ‘80s and ‘90s, in which stock markets were seeing 15% average annualized gains and you would have had to actually work to [...]

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The Fed Is Doing Something It Hasn’t Done Since the Financial System Nearly Crashed in 2008

The Fed’s rate cut last week was supposed to operate like clockwork. Everyone expected the 25 basis point cut, it was merely the next step in what will likely be a continuing series of cuts, and there was no anticipation of anything unusual. Yet what ended up occurring has rattled markets and left many observers wondering how weak the economy really is. Unless you’re a hardcore observer of financial markets, you’ve probably never heard of overnight repo markets. Those are [...]

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401k plan by age

How Much Should I Have in My 401(k): Amounts by Age

The dream of a comfortable retirement is one that motivates many an American worker. But like many other things in life, the definition of comfortable retirement is one that varies from person to person. For some, retirement means sitting on the couch watching TV and drinking beer. For others, it means living an active life full of sports and travel. Each of those lifestyles brings with it the need for different levels of financing. Most Americans today rely on a [...]

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Fed Cuts Interest Rates as Expected, But Markets Go Nuts

There weren’t really any surprises last week when the Federal Open Market Committee decided to cut its target federal funds rate another 25 basis points, to a target of 1.75% to 2.00%. That had long been expected and even priced in by many investors. But there were two anomalies that bear mentioning. The first is that there were three dissenting votes to the FOMC’s policy announcement. Those dissenting votes this time around were St. Louis Fed President James Bullard, who [...]

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Insiders Are Fleeing Stock Markets: What Do They Know That You Should Too?

When investing in markets, it’s sometimes a good idea to look at what other people are doing. Sometimes that take the form of looking at what they’re doing and doing exactly the opposite, like taking a short position on a hot stock because it’s fundamentally undervalued. Other times that takes the form of watching closely as those in the know make moves in their own self interest. The latter is what we’re seeing today, as corporate insiders have been [...]

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