Aggressive Pension Return Assumptions: The Wall Street Journal’s Jason Zweig points out that many private pension plans have unrealistic expectations of double digit returns from stocks. On the other hand, Berkshire Hathaway, whose pension plan is overseen by Warren Buffett, expects stock returns to range between 8% and 9%.
Pricey Dividend Payers: This column in the New York Times points out that investors attracted to dividends should note that the sectors that a rich in dividend-payers such as utilities, REITS, health care and consumer staples are now trading at rich valuations.
Canada’s Housing Bubble: The Economist magazine weighs in on housing prices in Canada pointing out that the ratio of housing prices to income is now 30% above the historical average.
Modest Housing Returns: Larry Swedroe points out that a long view of history shows that returns from residential real estate are rather modest. In any case, he suggests that we think of housing as a consumption item rather as a pure investment.
TurboTax Online Giveaway
With T-slips and tax receipts starting to roll in, it is time for a tax preparation software giveaway. Thanks to Intuit, I’m giving away three (3) coupons that are good for any version of TurboTax Online (valued at $17.99 for Standard and $32.99 for Premium). As always, entering the giveaway is real simple. Just leave a comment in this post and don’t forget to include a valid e-mail address. If you are reading this through your favourite RSS Reader or via-email, you have to click on the headline, get through to the website and scroll down to the bottom of the page and type in your comment.
Some quick rules:
(1) No purchase necessary. A skill-testing question may be required.
(2) Deadline for entries is 8 p.m. EST on Thursday, February 9, 2012.
(3) One entry per person please.
(4) I treat your privacy very seriously. Your email will be used for the sole purpose of contacting you if you happen to win.
(5) I’ll pick three (3) entries at random and announce the winner after the deadline. Thank you for entering and good luck!
