IRA Basics Part II: Choosing the IRA That’s Right for You

RetirementIf you expect to remain in the same tax bracket when you make contributions and withdraw the full account balance, a Roth IRA generally is the best option. If you move to a lower tax bracket when you begin making withdrawals, a Traditional IRA generally is the best choice.  Continue reading

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Ask Our Expert: What’s Influencing U.S. and Non-U.S. Real Estate Markets? (Part I)

Steven R. Brown, Senior Vice President, Senior Portfolio Manager

Steven R. Brown, Senior Vice President, Senior Portfolio Manager

Q: What are the key market conditions influencing the U.S. and non-U.S. real estate markets today?

A: The key conditions we are seeing now are related to continuing U.S. economic growth and the government policies bringing us low rates and strong liquidity. We are confident we’ll see continuing economic improvement and job growth throughout 2014. New real estate supply continues to be below long-term averages, providing the market with a positive fundamental backdrop. Continue reading

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CIO Insights: Rational Exuberance and Our Value Approach

Phillip N. Davidson

Phillip N. Davidson, CFA, Chief Investment Officer U.S. Value Equity

We believe market conditions have become much more favorable for higher-quality, dividend-paying companies temporarily trading at a discount to their fair value. Our macroeconomic observations contain concerns regarding the sustainability of corporate profit margins, emerging market demand and asset inflation driven by U.S. Federal Reserve policies. Bringing this extended bull run into perspective, since World War II there has been a market correction of at least 10% every two years on average.1 In line with this trend, we believe there are protective benefits to owning higher-quality companies temporarily trading at a discount to their fair market value with an income focus. Continue reading

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Chart of the Week: U.S. Wealth Gap Widens

Chart of the WeekThe wealth gap in the U.S. has widened past early 20th-century levels, as the richest 10% of Americans are accounting for the biggest share of national income since the 1930s. While the U.S. is the only developed nation to surpass previously recorded income levels, countries such as the U.K. have recorded significant increases over the past three decades. In the book Capital in the 21st Century, Professor Thomas Picketty of the Paris School of Economics details the wealth gap created by the share of total income for the richest 10% of developed nation populations such as the U.S., U.K., Germany, France and Sweden since 1900. Continue reading

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American Century Investments: What Sets Us Apart

At American Century Investments®, our commitment is rooted in focusing on delivering superior investment performance and developing long-term relationships with our clients. Our track record of performance, our business model and the legacy of our founder set us apart in the industry. Continue reading

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IRA Basics Part I: Using IRAs to Reach Retirement Goals

RetirementAn IRA can help put you one step closer to a comfortable retirement. Even if you already invest in a 401(k) or other employer-sponsored retirement plan, an Individual Retirement Account (IRA) can provide more investment choices and add to your earning power. The first step is deciding which type of IRA—Traditional or Roth—is right for you. Keep in mind that you must have earned income to contribute to either type of IRA. Continue reading

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Ask Our Expert: What Are the Opportunities in International Growth? (Part II)

Rajesh Gandhi, CFA, Vice President, Portfolio Manager

Rajesh Gandhi, CFA, Senior Portfolio Manager

Q: Are there any current themes in the portfolio that stretch across regions?

A: At times, we do arrive at themes as our bottom-up analysis uncovers trends that transcend regions or countries. These are important in that they can help us identify areas with the potential for future earnings gains. Improvements in an industry—new technology or innovation, strengthening fundamentals—can signal an inflection point where earnings may accelerate as well as help us solidify the sustainability of our investment case. An example of such stabilization/improvement across regions is the current strengthening in the global auto industry. We invest in company that produces active safety systems in cars—a play on the increase in new car sales. The global auto theme is also evident in other names in the portfolio in the sales, manufacturing, and components industries. Continue reading

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American Century Golf Championship Celebrates 25 Years

The 25th anniversary edition of the American Century Championship will bring a powerhouse lineup of 80+ sports legends and celebrities to Edgewood Tahoe July 15-20. Returning participants in the 2014 tournament include Charles Barkley, Oscar de la Hoya, Aaron Rogers, Kevin Nealon, Ray Romano and Jack Wagner. They will be joined by newcomers Rob Riggle (comedian), Terrell Davis (NFL) and Ricky Stenhouse (NASCAR).

In honor of American Century Investments Founder James Stowers Jr., an investment management innovator and philanthropist who recently passed away at the age of 90, the official national beneficiary of the 2014 tournament is the Stowers Institute for Medical Research. The Institute was established in 1994 through the extraordinary generosity of cancer survivors Mr. Stowers and his wife, Virginia, who dedicated their personal fortune to improving human health through basic research.

Television Schedule

  • July 18, Friday – Televised live on NBC SPORTS NETWORK (Cable): 1-4 pm PT, 4-7 pm ET
  • July 19, Saturday – Televised live on NBC (Broadcast Network): Noon-3 pm PT, 3-6 pm ET
  • July 20, Sunday – Televised live on NBC (Broadcast Network): Noon-3 pm PT, 3-6 pm ET

Each year, more than 40 percent of American Century Investments’ profits are distributed to the Stowers Institute of Medical Research. Total dividend payments since 2000 now exceed $1 billion. Learn more.

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How We Support the Stowers Institute for Medical Research

Through our ownership structure, more than 40% of our profits support the Stowers Institute for Medical Research, one of the most innovative biomedical research organizations in the world. Since 2000, nearly $1 billion in dividends have been distributed to the Stowers Institute. Continue reading

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CIO Insights: Are You Prepared for Rising Rates and Inflation?

Dave MacEwen

G. David MacEwen Co-Chief Investment Officer

Now that we’re past the first-quarter winter weather effects, we believe that stronger economic conditions will prevail in the U.S., leading to moderately rising interest rates and inflation pressures. We believe opportunities exist in non-dollar bonds, high-yield corporates, short-duration inflation-indexed securities, and municipal bonds. Continue reading

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