DWS Active | Reports - December 2012

Submitted bydkranker onFri, 02/01/2013 - 12:07

The first article in this quarterly publication titled Streaming Toward Simplicity discussed account statement changes and an ever increasing push to move more customers to online account access, like so many financial institutions. The printed statements underwent further consolidation. For customers with money fund transactions, you'll receive a monthly printed statement in the mail, check images would no longer be mailed, and would be online only. A small section titled DWS Weblink gave notice of the 2012 IRS 1099-B cost basis reporting requirement, also in reference to 2012 tax reporting, all DWS fund investements will be consolidated into one envelope. More tax information and details on calculating Cost Basis on shares sold is on the DWS Investments website.

To reach a representative at DWS Investments, the single toll-free phone number of 1-800-728-3337 was identified. The new Personal Performance feature of the online account was described and may help to better understand the distribution of individual portfolios. Online accounts also have access to directly downloadable tax information ready for import into common tax preparation software, such as those produced by TurboTax and H&R Block.

The inside article entitled Lemons to Lemonade was clever and tied together how a "sour" economy has been tough for retirement savers, but how "catch-up" contributions could be an option for workers over age 50. The "catch-up" contribution allowance applies to both Individual Retirement Accounts (Traditional & Roth) and 401(k) style. While intended for contribution shortfalls or periods of unemployment, a "catch-up" contribution can also offset performance shortcomings due to a weak economy.

An organization called IRI (Insured Retirement Institute) was cited as carrying out a telephone survey of people in the 50 - 66 year old age group, in which over 30% had insufficient funds to save for retirement, while 20% cited debt. The Bureau of Labor and statistics also showed in increase in joblessness, higher yet in people 55 and older.

The final section title Maestro, If You Please discussed how coordinating and planning your retirement by setting goals and identifying needs. Many of the questions focused on long range planning, and one though provoking question asked, "What could inhibit achieving these goals?" To help you to answer your own questions, several statistics were again identified. Life expectancy is predicted to rise in men and women to 77.1 and 81.9 in the United States by 2020. A call to use all investment instruments available was made. Holding a larger percentage of high growth potential stocks and less bonds until near 10% of retirement savings goal. An online tool at the Social Security Administration website along with software called Maximize My Social Security or Social Security Solutions were suggested to do personal projections based on demographics. Another factor to consider is when your spouse will retire and how this may affect your own goals. It's common for couples to retire at the same time, but this may not make the most financial sense given the life expectancy statistics.

When the time comes to begin drawing from the account, the idea is to have an orderly plan and be aware of required distributions at a particular age. Postponing taking out payments has the greatest return, and if only one spouse\'s account is drawn from, the other can be locked in for a higher potential return.