For the three months between March and May 2016, the United Kingdom recorded a record low unemployment rate of 4.9%; which is 10 basis points below the psychological lower limit of 5% it hit earlier on in the year. The last time the UK economy … [Read more...]
Q1 Annuity Sales Reports Indicate Positive Growth
Market research shows last year's annuity sales broke records. An analysis of first financial reports from top-tier annuity sellers indicates an upward trajectory for 2015. While decreasing interest rates threaten the popularity of certain annuity … [Read more...]
QLACs: New Tool for Preserving Retirement Income
Last summer, the Treasury Department introduced tax rules for a special financial tool known as a Qualified Longevity Annuity Contract (QLAC). QLAC refers to annuities purchased as part of a qualified retirement plan. The longevity part indicates … [Read more...]
Master Limited Partnerships
A Master limited partnership (MLP) is a publicly traded entity that combines the tax benefits of a limited partnership with the liquidity of a publicly traded company. MLPs are listed on the major U.S. stock exchanges, but because they are … [Read more...]
Portfolio Diversification
Portfolio diversification is a risk management technique by which investors minimize their portfolio risk by combining a variety of assets. Diversification tries to smooth out unsystematic risk events in a portfolio, and moderate the short-term … [Read more...]
Utility Bonds
A utility bond is a type of municipal bond that is issued to finance the construction of public utility projects, such as water systems, sewer systems, electrical plants and various public projects. The issuer of a utility bond receives a cash … [Read more...]
Auction Rate Securities – Meaning and Risks
Auction rate securities are debt instruments in which the interest rate is reset on a recurring basis through a Dutch auction. Auction rate securities help issuers diversify their funding structure by allowing them to pay at variable, short-term … [Read more...]
Debentures – Features, Types and Benefits
Debentures are a type of debt instrument that are not secured by specific property or collateral, but are backed by the full faith and credit of the issuer. If the issuer were to liquidate, the debenture holder is considered a general creditor, and … [Read more...]
Utility Bonds – Meaning, Merits and Risks
Utility bonds are municipal bonds that are issued to finance the construction of public utility projects, such as water systems, sewer systems, electrical plants and various public projects. The issuer of a utility bond receives a cash payment at the … [Read more...]
Don’t Be Afraid of Rising Interest Rates
By: Wealth Effect Blogger It seems every day I’m being warned by newspapers, magazines and websites of “financial bogeymen” waiting under my investment bed ready to jump out and turn my dream portfolio into a nightmare. One of these “bogeymen” I … [Read more...]