Month: March 2022

What Is a Bear Market?

Financial Planner

A bear market is a prolonged decline in market prices. This is a situation in which securities prices drop 20% or more from their recent highs, amid widespread pessimism. Bear markets are usually associated with declines of an index or overall market like the S&P 500. However, individual securities and commodities can be considered to be in bear markets if they experience a decrease of 20% or more over a sustained time period (typically two months or longer). General economic downturns, such as a recession, can also lead to bear markets. Contrast bear markets with the bull market that is in an upward trend

Phases Of a Bear Market

Bear markets typically have four phases.

  1. High prices and high investor sentiment are the hallmarks of the first phase. Investors begin to withdraw from the markets towards the end of this phase and start to take in profits.
  2. The second phase is when stock prices start to plummet, corporate profits and

Retiring with Tax Efficiency

Financial Advisor

Can you expect to pay more taxes when you retire? Yes. However, it will depend on how much income you earn. Is it from work? Is it from work? It’s important to know which retirement plans will finance your retirement.

Consider the impact Social Security has on your retirement. When will you begin to receive Social Security benefits? When do you plan to start receiving benefits if you have a spouse? You need to answer the key questions about Social Security benefits so that you can better understand how it will impact your taxable income.

What is a pretax investment? Traditional retirement plans and 401(ks)s are two examples of pretax investments that can help you save for retirement.

Until you begin taking distributions, you won’t have to pay taxes on any contributions to these accounts. These investments, also known as pre-tax investments, are tax-deferred investments. This is because the money that you have in these accounts can enjoy tax-deferred growth.…