Dividend money manager Federated Investors’ commentary discusses why they believe the economy is poised to grow even further this year, driving equities to new highs. “2014 hardly could have started worse, with a brutal and seemingly never-ending winter bringing activity to a halt and keeping shoppers at home in much of the country. The final first-quarter estimate told the story, with real gross domestic product (GDP) contracting a much worse-than-expected 2.1%. But there’s a reason the equity market shook off the number. It was, after all, so yesterday. What today and the rest of the year look like are much different, as manufacturing and jobs appear to be accelerating, auto and retail sales are on the upswing and even housing is showing some signs of pulling out of its funk. The government’s estimate of second-quarter growth was a well-above-consensus 4.2%, in line with our view that the economy is settling onto a higher growth plane that will drive equities to new highs this year and into 2015.” Download Federated's Full Commentary Here Get Free Research Reports on Federated Investors [+] Read More

Often times your fixed sources of income like Social Security and pensions will not fully meet your retirement income needs. This likely means you’ll need to tap into your investment accounts to increase your income. But which accounts should you draw from first, and when is the right time to take distributions? Here’s a general guide for choosing which accounts to draw down first and why. Remember, which approach you take depends on your unique situation and goals. [+] Read More

Retiring in today’s world can seem to be a bit of a mystery. It used to be that when you retired, your company threw you a party then sent you home with a comfortable pension and health insurance. While times have changed, that doesn’t mean your retirement has to be any less comfortable or rewarding than your parent’s. In fact, with all the investment and planning options available today, you and your financial advisor can build a goals-based retirement plan that best suits your income needs, your future plans and your family’s unique situation. Our popular e-book, 5 Ways to Enhance Your Retirement Planning Strategy So You Can Face the Future with Confidence, provides you with an understanding of five of the most effective methods of planning for your retirement. [+] Read More

Should you count on Social Security benefits as an integral part of your retirement income plan? And how much? These are questions we hear often. There's a lot of confusion out there regarding social security benefits because misinformation abounds. With political issues, rhetoric becomes inflamed, and information is often used to sway opinion or policy. But when you're planning for retirement, misinformation is dangerous. What you need are solid answers about Social Security. Let's look at some of the most common questions surrounding Social Security in retirement. [+] Read More

If you want to add more yield-producing investments to your portfolio, one option for you could be master limited partnerships (MLPs). They could help increase your portfolio’s overall yield and improve your retirement income strategy. MLPs – which invest largely in oil and gas assets – are experiencing a revival and currently pay attractive yields relative to traditional income producing assets, like dividend-paying stocks and US Treasuries:1 Asset Class Yield and Correlation (Click chart for larger version) Source: Newfound Research LLC. Yield on a given day is calculated using smoothed 12-month trailing dividends. Yield presented in the table is computed as of 3/31/2014. Correlation is calculated as Pearson correlation of monthly returns between the asset class ETF and the S&P 500 ETF “SPY” from ETF inception to 3/31/2014. [+] Read More

As you look forward to retirement, you may be picturing the easy life. Maybe you plan for the beach, maybe you will pursue a new hobby, charity work or even a new, more fulfilling career. As you are preparing to enter retirement remember that you Social security benefits can potentially be taxed and plan ahead. If you think of the six-fingered vizier Count Rugen from the movie "Princess Bride" and his egregious tax collection every time the IRS comes to mind, just remember, the IRS does not need to be scary. You do not have to be crafty to get prepared for retirement. The key is to plan ahead! How Much of Your Social Security Benefits are Taxable? The short answer is the IRS will probably want their portion. How much can vary based on how much income and the type of income. The IRS offered Publication 915 to help resolve the answer to my question "Are my social security benefits taxable?"1 [+] Read More

You don't have to wait until you retire to take advantage of a 401K rollover and all the benefits that come with it. A 401K inservice withdrawal can be just what you need to advance your retirement strategy and create new investment options. In fact, it's not unlike a general gathering all of his troops together, examining the mission, and positioning everyone where they'll do the most good. Just as this wise general can be ready for whatever comes his way, a 401K inservice withdrawal can enhance your retirement income strategy while you're still working, thus preparing for a promising future. 401K Rollovers While You're Still Working Many 401K plans allow you to rollover a portion (or all) of your 401K into your IRA while you're working without incurring any of the penalties associated with early withdrawals. Normally, if you're under the age of 59 1/2, a 401K withdrawal could be subject to a 10% early withdrawal penalty and be treated as ordinary income, thus raising income tax concerns. These penalties could take quite a significant bite out of your retirement savings. [+] Read More

If you’re invested in target date funds, or your employer offers them as part of your 401(k) or another retirement plan, you may want to consider whether they are a good investment option for you. Target date funds are automated investment products that do not take into account your personal financial circumstances and needs, and they do not adapt to changing market conditions. As a result they may not be effective products for helping you reach your long-term retirement goals, and in some cases they could even add risk to your portfolio over time – hurting your retirement. Why Are Target Date Funds so Popular? The appeal of these funds is generally their “auto-pilot” feature – you pick a fund that matches your retirement date, and the fund will diversify your assets and gradually become more conservative as you near retirement.1 For this reason, some may perceive them as low risk investments, but there are issues with this view as you examine target date funds more closely. [+] Read More

According to an April 2014 Gallup poll, 59% of Americans are concerned their nest egg is not big enough to last them through retirement. A majority (53%) is concerned about not having enough to pay medical costs in the event of a serious illness or accident, and (48%) wonder about their ability to maintain the same standard of living throughout retirement. Thankfully good retirement income planning can help alleviate these concerns, and even help prevent them from happening in the first place. [+] Read More