News & Views
Holiday Edition |
Greetings!
I hope all is well. In this edition of News & Views, I will discuss the markets and the 2014 retirement contribution limits. As always, please contact me with any questions or suggestions you may have.
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| Market Update | |
Good Times for Stocks, Not So for Everything Else
2014 has been a strong year for stocks, but not for other assets. Stocks have posted solid double-digit gains while bonds, commodities, and precious metals are all negative. That means that a diversified portfolio (stocks and bonds for example) would have returned you less than an all stock portfolio.
It's been said that the three most important things to remember about investing are diversification, diversification, diversification. That concept holds true over the long-term as diversifying your investments has provided superior risk-adjusted returns. If you look at a 10 or 15 year time period, a diversified portfolio of stocks and bonds would have returned you slightly more than an all stock portfolio with about 70% of the volatility.
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| 2014 Retirement Plan Contribution Levels (same as 2013) | |
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Traditional / ROTH IRA
$5,500 standard contribution limit with a $1,000 catch-up contribution for participants age 50 and above
401(k) / 403(b)
$17,500 standard pre-tax contribution limit with a $5,500 catch-up contribution for participants age 50 and above
SIMPLE
$12,000 standard pre-tax contribution limit with a $2,500 catch-up contribution for participants age 50 and above
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| Happy New Year! | |
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Thank you for the trust and confidence you place in me. I wish you and your family the best during 2014!
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Sincerely,
Paul Hewitt
(949) 727-4734 x1 |
