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Top Income-Earners Drive U.S. Economic Growth

Have you been surprised by the slow but steady growth in the U.S. economy over of the last three years and the accompanying doubling in U.S. stock prices in major indexes of the broad stock market? The explanation for these two very positive economic developments may lie in the distribution of income and spending in America, specifically, in their skew toward wealthier individuals. To be clear, it’s not the top 1% of wealthiest Americans driving the recovery but the top two income quintiles, the middle class — the top 40%. The top two income quintiles account for 61% of total spending in the U.S. economy, according to statistics released in […]

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Take A Closer Look At Your RMDs

The IRS allows you to build up a sizeable nest egg for retirement inside your traditional IRAs. But then the other shoe drops: Whether you want to or not, you must begin taking “required minimum distributions” (RMDs) once you reach a certain age. Otherwise, you could be socked with a hefty tax penalty. But the tax law does provide some flexibility. Depending on your situation, you might decide to withdraw funds from one of your IRAs, all of your IRAs, or any combination you prefer. You have to start taking RMDs from your IRAs by April 1st of the year after the year in which you turn age 70½. In […]

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This Is Not Granddad’s ‘Defined Benefit Plan’

One type of retirement plan that was popular in your grandfather’s day, or maybe your father’s day, is making a comeback. It’s a “defined benefit plan”—really, a traditional pension plan. Why the revival now? With a defined benefit plan, you can generally build a retirement nest egg faster than you can with a 401(k) or other kind of “defined contribution plan.” For this reason, defined benefit plans often appeal to older business owners or managers who are in a position to call the shots. But the plan does come with some potential drawbacks. Basic premise: A defined contribution plan specifies an annual amount to be contributed on behalf of each participating […]

BNY Research and Commentary

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Global Markets

China's Balancing Act In The Trade War

China’s economy is in a tough spot, facing multiple headwinds including escalating trade frictions, tightening global financial conditions led by the U.S. rate hikes, and deleveraging efforts curbing domestic demand.

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Market Commentary

Real Assets: Opportunities and Constraints for Investors

With sovereign wealth and public pension funds’ investments to real assets set to rise by over US$400bn in the next two years, Alan Flanagan, Managing Director, Global Head of Private Markets and Marvin Vervaart, EMEA Pensions Product Head, explore how...

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Investment Insight

The Importance of a Strong Foundation

In Jeff Mortimer's September 2018 Investment Update, rather than look at this bull market's extraordinary age, he prefers to focus on the fundamentals, which appear to remain strong.

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Asset Allocation

Investing for a Disruptive Future

Technological advances are pointing toward a future in which markets are subject to rapid and continuous change. This presents new challenges for investors, but also new opportunities.

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Economic Insight

How Family Businesses Can Avoid the Wealth Transfer Trap

An estimated $8.8 trillion will be passed down to Gen X and millennials by 2027. But research shows that 70% of families lose their wealth by the second generation and 90% lose it by the third. Why?

Read More: How Family Businesses Can Avoid the Wealth Transfer Trap