In recent years, the 401(k) has become the most common way for full-time employees to save for retirement. With a 401(k), employees can take money from their salary before it is taxed, and they can choose to invest that money in a variety of stock and bond mutual funds. At the same time, many millions of Americans are investing directly in the stock market via a regular brokerage account. It’s often possible to invest in the same fund in both ways—through your 401(k) and through your brokerage account. However, you might find that the expense ratio associated with the investment is higher if it is held in your 401(k). In this article, we’ll explain why that might be the case and what you can do about it. Many people have both a self-directed brokerage account and a 401(k) plan provided by their employer. If that applies to you, you might notice that your expense ratios for the employer-sponsored plan are higher than your self-directed account. That’s because running … [Read more...] about Are Expense Ratios Higher for Fund Options in a 401(k)?
Taxing stock options
"In Asia, I am cautious on countries with large current account deficits, where the future increase in imports will exaggerate the already strained government finances," says Asheesh Chanda, Founder & CEO of Kristal.AI in an interview to Moneycontrol. On themes to invest, Asheesh with more than 15 years of experience in the financial industry says India has several interesting themes going on. "As our country moves up the chain to add more manufacturing power, we should expect factory automation and robotics to play a role." According to him, corporate earnings, especially at the higher quality end of the spectrum, are expected to remain strong. However, the supply chain constraints are expected to persist for 2-3 more quarters, says Asheesh who had worked with global giants including Citibank, BNP Paribas, and JPMorgan Chase before establishing a global digital private wealth platform. What is your advice to investors as we entered into new financial year 2022-23 … [Read more...] about Daily Voice | India to be one of brighter pockets with likely growth of around 8.5%: Asheesh Chanda of Kristal AI
Subscribers to the National Pension Scheme (NPS) are worried about their corpus eroding amid falling prices of stocks, bonds and government securities. Some savvy investors would like to sit out and come back to stock markets at lower levels, but NPS does not allow interim withdrawals. In this situation the only alternative, experts say, is to take a long-term view and focus on investing in line with your desired asset allocation. Falling returns Investors have experienced volatility across asset classes. In NPS , equity, corporate bonds and G-sec schemes have given 6.85 percent, 2.18 percent and 0.27 percent average returns respectively in the year ended May 27, 2022. Equity markets have done well since March 2020 on abundant liquidity. As liquidity is being withdrawn by central banks and inflation is sticky, stock markets have turned volatile. Same is the case with bonds. When central banks, including Reserve Bank of India, cut policy rates to stimulate the economy in … [Read more...] about Worried about falling NPS returns? Here is what you can do
If you have investments in one or more IRAs, and you are starting a new job with an employer that offers a 401(k) plan, an important question may well arise – should you move your assets from your IRA into your new 401(k)? While the question is a logical one, it rarely arises because IRA “roll overs” generally happen in the opposite direction, with investors moving 401(k) assets into an IRA when they leave a job, or simply to take advantage of the investment freedom that an IRA offers. Nevertheless, there can be some good reasons to move your IRAs into your company’s 401(k). In this article, we’ll look at the pros and cons of this maneuver. Key Takeaways If you are starting a new job with an employer that offers a 401(k) plan, you might be wondering if you can move investments from your IRAs into your new plan. While unusual, this can have some advantages if you want to access your retirement funds early, or defer distributions until you retire. The disadvantage of doing … [Read more...] about Should I Put My IRAs Into My Company’s 401(K)?
Fallout from a strategic decision between Dish Network and EchoStar Corp. to trade a few assets is hitting home for many EchoStar employees. Make that former EchoStar employees. The two Douglas County-based companies are swapping certain business units that would give Dish most of the video side of EchoStar, including the rest of online video service Sling TV plus the set-top box business that includes the ground-breaking Slingbox. The trade, announced Jan. 31, will also result in “fewer than 100” EchoStar employees losing their jobs, plus a reported end to manufacturing of Slingbox. Another 1,800 EchoStar employees will move to Dish following the trade, which was completed Tuesday. “EchoStar implemented a small reduction in force in late January, in response to recent changes in the marketplace,” said Michael T. Dugan, CEO and president of EchoStar Corporation, in a statement e-mailed to The Denver Post on Tuesday. “This reduction in force has impacted fewer than 100 of … [Read more...] about EchoStar cuts 100 employees, another 1,800 moving to Dish Network
This article first appeared in Capital, The Edge Malaysia Weekly, on June 20, 2022 - June 26, 2022. - A + A Bermaz Auto Bhd Target price: RM2.40 ADD CGS-CIMB RESEARCH (JUNE 14) : BAuto’s 4QFY22 revenue rose 44% quarter on quarter due to stronger contribution from Malaysia (+45% q-o-q) and the Philippines (+34% q-o-q) on the back of higher sales volume, which grew 47% and 30% q-o-q respectively. The group also attributed the stronger sales in Malaysia to higher contributions from new model launches for Kia and Peugeot, which grew 29% and 94% q-o-q respectively. BAuto declared a combined interim and special dividend per share of 4.5 sen for the quarter, bringing the total dividend for FY22 to 8.75 sen, significantly above our expectation of 6.5 sen. Overall, the dividend payout rose from 56% in FY21 to 65% in FY22. BAuto’s Ebit margin for FY22 expanded 2.1 percentage points year on year to 8.6% due to (1) a discontinuation of aggressive … [Read more...] about Brokers Digest: Local Equities – Bermaz Auto Bhd, MyEG Services Bhd, Genting Bhd, Scientex Bhd
This article first appeared in The Edge Malaysia Weekly, on June 20, 2022 - June 26, 2022. - A + A GIVEN that investors accept higher valuations for technology companies going public in the US, aviation analysts say it is not surprising that Capital A Bhd (CapA) is considering listing its low-cost AirAsia airline and digital businesses on the New York Stock Exchange. They believe, however, that now is not the right time. On June 12, the Financial Times reported executive director and CEO Tan Sri Tony Fernandes as saying that CapA was considering two separate listings in the US, one for AirAsia “sometime next year”, followed by its super app, which offers services from travel to takeaways. A senior investment banker who asked not to be named says while there is a rebound in air travel amid the easing of travel restrictions and rising demand — a trend experts term “revenge travel” — airline stocks are not fetching the kind of valuations that Fernandes … [Read more...] about Capital A could fetch higher valuations in US markets
Investors seem to be willing to take more risks in bullish markets. This could be because they believe markets will remain strong or because they missed the bus earlier. This is very typical of bull markets. I see many queries in social media on courses that teach stock trading. “Around 80 percent of open buy option positions at the end of the day are in losses,” says Nithin Kamat of Zerodha. Stock trading doesn’t work. Period. Chasing higher returns with risky products With traditional fixed income products giving low returns, the hunt for higher yields is making investors choose covered bonds and NCDs, which deliver 3-4 percent points a year over what bank fixed deposits do. Even peer-to-peer lending and invoice discounting are being explored. Full-page advertisements from platforms promoting these products seem to be working. Close The instant gratification mantra is making investors forget risk aspects. Instruments such as cryptocurrency and invoice … [Read more...] about Here are two products for investors who missed the market rally
- A + A BEIJING (June 29): Chicago wheat futures extended gains on Wednesday (June 29), lifted by signs of improved demand and bargain-buying after three straight sessions pushed the contract to its lowest level since February. Corn and soybeans edged lower. Fundamentals The most-active wheat contract on the Chicago Board of Trade (CBOT) rose 0.29% to US$9.38 (about RM41.27)-3/4 a bushel. Corn fell 0.46% to US$6.56-1/4 a bushel and soybeans edged down 0.39% to US$14.56-3/4 a bushel. Jordan's state grains buyer purchased about 60,000 tonnes of hard milling wheat to be sourced from optional origins in a tender that closed on Tuesday. Indicating signs of demand, Bangladesh and Pakistan also launched tenders to purchase wheat. The reports of more demand supported Chicago wheat prices. The US Department of Agriculture cut its rating of the country's corn crop in good-to-excellent shape to 67% in its weekly crop progress report, down three percentage points from … [Read more...] about Chicago wheat extends gains on demand optimism
Share to Twitter Share to Linkedin S nack giant Mondelez announced last week it will acquire energy bar maker Clif Bar in a deal worth at least $2.9 billion. The sale of the Emeryville, California-based company, founded by entrepreneur and sports fanatic Gary Erickson back in 1992, marks a landmark moment that will make not only its majority owners rich, but also some of its employees. Forbes previously estimated that Erickson, aged 64, and his wife Kit Crawford, 63, who own at least 80% of the business they ran as co-CEOs for many years, would walk away with $1.53 billion (after taxes), bringing their collective net worth to $1.6 billion. The remaining 20% was set aside for Clif Bar’s employees when the company introduced an employee stock ownership plan (ESOP) in 2010 as a retirement benefit. That ownership stake should set employees up for a $580 million (pre-tax) payday. But which employees, and how much they get, appears to be a bone of … [Read more...] about Inside Clif Bar’s Rocky Road To Its Sale—And A Possible $580 Million Employee Payout