few opinions we thought that we would share with you.
Vanguard chief investment officer and indexing guru Gus Sauter thinks U.S. stocks are in a secular, long-term bull market and that investors can reasonably expect returns in line with historic rates between 8% and 10% over the next five to 10 years.
We hope he’s right, but we expect a bumpy ride.
In 2009, 25% of retirees said their financial situation was much worse after the recession. That percentage fell slightly to 23% in 2011. Among pre-retirees, the difference was more significant. Over a third of pre-retirees said in 2009 that they were much worse off after the recession, compared with 25% who said the same in 2011.
It’s an improvement, but the concerns that people had after the 2008 crash will take much longer to recede.
The amount you can sock away into your 401(k), 403(b), and most Section 457 plans increases from $17,000 to $17,500. If you’re over 50, add another $5,500.
Individuals making qualifying contributions to an IRA can now contribute $5,500 in 2013. The 2012 limit was $5,000.
The annual gift exclusion rises from $13,000 in 2012 to $14,000 in 2013,
Worker’s tax rate goes back to 6.2%b from 4.2%.