The Bancorp Institutional Banking business provides financial professionals with innovative lending solutions, such as an Insurance-Backed Line of Credit (IBLOC), that can seamlessly integrate with their clients’ wealth management strategies. An IBLOC allows financial professionals to show clients they are a forward-thinking steward of their wealth management by educating them on how they can use this money to work for them.
With the growth in 401(k) plans and the contraction of private pensions over the last 30 years, risks in retirement have slowly and almost imperceptibly transferred from institutions to individuals. Institutions staffed with actuaries and analysts are well suited to manage those risks. Individual investors may need some help.
This session introduces a relatively new kind of portfolio income insurance: a Contingent Deferred Annuity. It unbundles the insurance from underlying investments so that advisors may “wrap” the risk in client portfolios by covering investments in retail ETFs and mutual funds with lifetime income protections.
It came as a surprise when I found the annual report of the New Zealand SuperFund. While no one could fault it for sticking with passive investments, it chose a different path, with stunning results.
Our economy is in a will-they-won’t-they relationship with the next big recession.
Some Uber and Lyft drivers are finding that renting or buying a Tesla, the luxury electric car, is a more profitable option now amid soaring gas prices that have upended the economics of gig work.
It’s easy to be carried away: Top banking regulators are hungry for the efficiency, profitability and better service that pan-European banks could deliver.
This bear market is punishing everyone and everything.
Options insurance. Hedging with Treasuries. Using sentiment to pick a bottom. The things that have lessened the pain of past equity selloffs are coming up short this time around.
This morning's seasonally adjusted 229K new claims, down 2K from the previous week's revised figure, was above the Investing.com forecast of 227K.
Lifetime income solutions are high on the wish lists of defined contribution (DC) plan participants, with the certainty of a guaranteed lifetime income stream ranking as the top feature in our surveys over the past decade.
Because the consequences of leaving longevity unmanaged are likely to be the most devastating, advisors must act now to address it.
Given year-to-date fixed income returns, one would be forgiven if they never wanted to own the asset class again. Such a view, however, could prove costly as, for the first time in a year, areas of the market are starting to look attractive.
US credit-card rates have soared past 20%, mortgage costs have climbed to the highest since 2008 and companies are having a harder time borrowing money.
The latest Conference Board Leading Economic Index (LEI) for May was down 0.4% from the April final figure of 118.8.
Leo Tolstoy’s Anna Karenina opens with one of the most famous lines in world literature: “All happy families are alike, but every unhappy family is unhappy in its own way.”
Applications for US unemployment insurance were little changed last week, suggesting the labor market remains exceptionally tight.
Investors are terrified.
Since the recession of 2008 in 2009, financial stocks in general have been trading at significantly lower valuations than normal.
Mistakes are easy to make but are easier to avoid if you know what a “bad” succession plan looks like.
Several avenues for diversifying cryptocurrency portfolios exist. Investors should weigh the costs and benefits of each of the following three methods.
Traders unnerved by a selloff that hit stocks and bonds alike are looking for refuge, increasing the appeal of investments offering reliable returns such as shares that pay steady dividends.
Social Security has a problem.
According to a recent survey, a majority of Republicans and a plurality of Democrats believe the US is in a recession. The question is how seriously to take their complaints.
The Bureau of Labor Statistics released the May Consumer Price Index data this morning. The year-over-year non-seasonally adjusted Headline CPI came in at 8.58%, up from 8.26% the previous month. Year-over-year Core CPI (ex Food and Energy) came in at 6.02%, down from 6.16% the previous month.
Economists like to strip food and energy out of their inflation calculations. They’re too volatile to be meaningful, they say. But for everyday Americans coping with exploding prices, those items are pretty much all they care about right now.
It started with bonds. Now even collateralized debt obligations (CDOs) come in green.
Stocks modestly lower ahead of tomorrow’s inflation report.
The year 2022 sure has felt like a pretty bad one so far: interest rates and consumer prices have spiked up, and stock prices are sharply down. But, in terms of what really matters, many investors are better off than they were at the end of 2021–almost 5% better off for an investor in a diversified balanced portfolio.
The advisors who figure out how to work with Generation Z will take your wealthy Baby Boomer clients away. Stop rolling your eyes and listen to why.
I’ve supported many clients through times of loss and transition such as divorces, deaths of parents or spouses, business failures, and natural disasters. Following are some of the things I’ve learned.
JP Morgan CEO Jamie Dimon caused a stir lately when he talked about a "hurricane" hitting the US economy.
This commentary has been updated to include Friday morning's release of Nonfarm Employment. May saw 390K increase in total nonfarm payrolls. The unemployment rate remained at 3.6%. The Investing.com consensus was for 325K jobs gained.
I’m going to review the research on safe-spending rates and then critique common methods of risk mitigation. I’ll offer the practical methods to reduce sequence-of-return risk that I suggest to my clients.
Bear markets always signal a leadership change within the overall equity market. The leadership going into a bear market is rarely, if ever, the leadership coming out. Because of this rule of thumb, we view bear markets as periods of extreme opportunity.
The likely moderation of US job growth in coming months will reflect a combination of hiring challenges in a remarkably tight labor market, shifts in spending patterns and outright soft spots within a handful of industries.
Being immobilized in grief can be deeply painful and damaging emotionally. It can be financially damaging, as well, limiting a person’s ability to make sound financial decisions that can affect their future. This is where objective help and support is essential.
Even in 2022, pensions still command an aura of reverence. A benefit where you work for one company for 30 years and then retire with a livable wage? And you don’t have to fret about picking investments? What’s not to like?
There’s a silver lining to the current bear market…
Meet a woman driven to change investment regulation and understand why it’s important that she succeeds.
How are advisors coping with the new Department of Labor (DOL) rollover rules? Here are a dozen observations.
Personal Income (excluding Transfer Receipts) in April rose 0.52% and is up 8.4% year-over-year. However, when adjusted for inflation using the BEA's PCE Price Index, Real Personal Income (excluding Transfer Receipts) MoM was up 0.27%. The real number is up 2.0% year-over-year. October through March revisions were made.
Memorial Day deserves the great recognition it gets. Remembering the service of those who died for our country is a civic duty. This includes remembering, doing and acting in a manner that there is no doubt the character of military and finance leaders must be first.
Advisors can help the sandwich generation assess their risk for LTC and protect financial goals with the right approach to insurance.
The price of foods, fuels and other essential items are spiraling ever upward as Russia’s war on Ukraine compounds supply-chain woes stemming from the pandemic. Central banks may be in the driving seat when it comes to tackling inflation, but it’s governments that face the fallout and so are compelled to act.
I want to draw your focus to the three most important, yet boring, tax strategies that every advisor should be discussing with every client.
RIAs can be paid to service trails-paying annuities without a broker-dealer.
The U.S. was experiencing some of the highest inflation in its history.
Rick, David and Govinda will identify the risk cycle, and explore how risk can be 'wrapped' with portfolio income insurance to provide a reliable stream of income. The certainty of lifetime income may give individual investors the assurance to not only spend confidently, but to allocate more to equities without the fear that a terrible market event will force them to spend much less than planned in retirement.
Whenever I surf television cable news channels, I see the plethora of ads for financial planning. But they are run by companies that sell financial products or are owned by huge insurance companies.
This article explores the benefits of annuities with lower explicit fees, a category I dubbed as “annuities Lite” in a previous article that focused on GLWBs.
Since the 1990s, the CalPERS sold LTC policies to its residents. The lawsuit over claims related to those policies illustrates the dangers clients face with government-sponsored insurance programs.
The best retirement-savings vehicle is one that few have heard about: I bonds. They offer a risk-free yield of 9.62%, yet the amount of I bonds issued is only a small fraction of the total volume of bond issuance by the U.S. Treasury. My guest today will explain that paradox.
This is also the 300th episode of the Gaining Perspective podcast, and no guest would be more appropriate than Zvi Bodie. He has eloquently and persuasively made the case for the financial services industry to provide products that respond to the needs of everyday investors.
The Fed is at a crucial junction, according to Lacy Hunt. It has to contain inflation. If not, the stability of the U.S. economy over the longer term is seriously in doubt.
Tax Day has come and gone.
At a time when New York towers are struggling with high vacancies and many workers are still remote, money managers are seeking to accommodate growing staff and encourage in-person collaboration with trendier digs. Along with tech companies, they’re helping to fill part of the void left from employers giving up space -- even as Manhattan’s office supply continues to grow faster than demand.
I don’t care how many PhDs are going to argue against me; direct indexing is Wall Street’s attempt at squeezing more fees out of the America public using advisors as the pawns.
While I am not a practice management guru, an experience I had this past year warrants sharing. it led to adding value to your clients in a way few of you do.
The new Investment Advisor Rep CE requirement isn’t just more training required by regulators; it’s an opportunity for advisors to start or continue on the right path with clients.
Since 1992, The Belkin Report has used Michael Belkin’s proprietary forecasting model to project the performance of market sectors, groups, and specific stocks. It provides three‐ and 12‐month forecasts for financial markets based on rates of change. Because of its track record, The Belkin Report has become a trusted resource for top hedge funds, mutual funds, pension funds, insurance companies, family offices, and sovereign wealth funds across the globe.
“Don’t be bearish.” That was the message delivered by a Wall Street Journal article in August 2021.
Investors often look for ways to enhance income, lower a portfolio’s overall expected volatility or even help manage taxable gains.
The Milken Institute Global Conference continues in Beverly Hills, California, bringing together investors, dealmakers, power brokers and celebrities to discuss markets and megatrends. Academics, sports stars, entrepreneurs and politicians among the thousands coming to the Beverly Hilton for the event, which runs through Wednesday.
Franklin Mutual Series’ Katrina Dudley sees President Emmanuel Macron’s re-election as a positive for the French economy and regional equity markets over the longer term.
“Agents are standing by” to help your clients make one of the most pivotal financial decisions of their retirement… a decision that will blindside you as their advisor and throw even the most carefully crafted retirement plan for a loss. Sometimes, a very big loss.
Warren Buffett has simple advice for investors as they stare down the worst inflation in decades: Invest in your own skills.
In an ambitious new book, the economist Andrew Smithers rejects core “Newtonian” principles of economics, replacing them with radical departures from conventional wisdom. But as I will explain, some of Smithers’ theories fail meet the standard of empirical verification.
Imagine that you have joined some friends for a day of fishing. About two miles offshore, you sense that something is wrong. The small, single engine boat’s handling has changed. There seems to be more. Use our premium service to add your company’s logo and send this to clients.
There is a real fear about the cost of seeing a doctor and how it can impact your finances. Millions of Americans receive surprise medical bills each year. That includes insured individuals, according to research by the Peterson-KFF Health System Tracker. A new federal law, The No Surprises Act, went into effect Jan. 1, 2022, banning most unexpected medical charges.
After hanging in the shadows for most of the pandemic, the billionaire investor and his deputies have been ramping up Berkshire Hathaway Inc.’s acquisition machine -- snapping up shares of Occidental Petroleum Corp. and HP Inc. and striking an $11.6 billion deal to buy Alleghany Corp. The flurry of activity comes just as investors are set to flock to Omaha, Nebraska, for the conglomerate’s first in-person shareholder meeting since 2019.
Sanctions on Russia’s foreign currency reserves will likely stymie the rise of the Chinese renminbi as a competitor to the U.S. dollar.
Here are five ways to win new business and clients for life by creating urgency, so your prospects want to create a financial plan now with you.
As chief architect of the finance industry’s biggest climate coalition, Mark Carney said banks and asset managers are doing a better job at steering capital away from fossil fuels than is implied by what he described as “clickbait” headlines.
This is a hard time to retire. The market is down 7% from last year and the rate of inflation has risen to 8.5%. Both are brutal to your bottom line when you're on a fixed income. But buck up! As bad as things seem, odds are you are in better shape than your parents or grandparents. And if they got through retirement comfortably, so will you.
Savers are about to learn one painful and one surprising lesson about interest rates and banks. First, just because the Federal Reserve is raising rates doesn’t mean the rate investors earn on their cash will rise as much — if at all. In fact, the financial repression in the form of zero rates suffered for more than a dozen years by those who are ultra conservative with their savings isn’t going away soon.
“Banks are forever going to be trying to play catchup,” said Michael Moro, CEO of digital currency prime brokerage Genesis. “Crypto is going to move way faster than banks can. We have every bank in the world pretty much having some sort of crypto, blockchain working group.”
Depending upon the annuity that is being recommended and its purpose, your discovery process should include these questions. This article is written for clients and can be forwarded to them using our Premium Membership Service.
The S&P 500 rose 1.6%, its best day since mid-March and only its second gain in seven sessions. The Russell 2000 Index of smaller firms added 2% in its strongest performance of April. Meanwhile, S&P sectors sensitive to the economy -- including consumer discretionary and real estate -- outperformed, with only energy closing lower.
An often overlooked and underutilized fixed-income alternative, preferred securities offer investors compelling diversification and income opportunities in today's volatile, rising interest rate environment. With yields and returns comparable to high-yield fixed income, today's preferred securities have evolved into a distinct and attractive income-generating asset class.
Comparing advisors to big-rig truck drivers makes more sense that you think, once you consider the eerie similarities in their business models.
Six of the largest Western oil producers — BP Plc, Chevron Corp., ConocoPhillips, Exxon Mobil Corp., Shell Plc and TotalEnergies SE — are expected to generate free cash flow, after capital expenditure, of $163 billion this year.
Does the scenario below sound likely? If so, you are among the thousands of RIAs who are likely to lose significant assets over the next decade.
While the lower fees associated with GLWB Lite products make them seem more attractive, the expected income is significantly lower than other annuities.
In this article, I will explain how to structure an income strategy that best serves the needs of constrained investors. Demographic, economic, cultural, and social forces argue for a new approach to retirement planning.
RIAs must align their communications, planning methodologies, and product set with the needs of retirees, especially women, whose chief priority is reliability of income more than return on investment.
Real GDP, in the US, grew 5.5% in 2021, the fastest growth for any calendar year since the Reagan Boom in the mid-1980s.
To start, let’s discuss what diversification is and what it is not.
In his federal budget for fiscal year 2023 that he unveiled earlier this month, President Biden proposed a huge new tax increase on America’s wealthiest citizens.
For years, small accounts have been overcharged and underserved. I’m encouraged, however, by what I see some advisors doing, I wish the rest of the profession were inspired to similarly elevate the value provided for the price charged small clients.
An estimated 30,000 people attended this week’s Bitcoin 2022 conference in Miami, which is rapidly becoming a major global crypto-finance hub.
Today we’ll consider the risks to my stagflation forecast. Note that’s different from the risks of my forecast, should it prove accurate. I’ve described those already but it’s important to ask how I might be wrong.
Insurance & Annuities
Insurance-Backed Line of Credit: An Innovative Way to Access Liquidity
The Bancorp Institutional Banking business provides financial professionals with innovative lending solutions, such as an Insurance-Backed Line of Credit (IBLOC), that can seamlessly integrate with their clients’ wealth management strategies. An IBLOC allows financial professionals to show clients they are a forward-thinking steward of their wealth management by educating them on how they can use this money to work for them.
Insuring Client Spending in Retirement with Portfolio Income Insurance
With the growth in 401(k) plans and the contraction of private pensions over the last 30 years, risks in retirement have slowly and almost imperceptibly transferred from institutions to individuals. Institutions staffed with actuaries and analysts are well suited to manage those risks. Individual investors may need some help.
This session introduces a relatively new kind of portfolio income insurance: a Contingent Deferred Annuity. It unbundles the insurance from underlying investments so that advisors may “wrap” the risk in client portfolios by covering investments in retail ETFs and mutual funds with lifetime income protections.
How a New Zealand Superfund “Beat the Market”
It came as a surprise when I found the annual report of the New Zealand SuperFund. While no one could fault it for sticking with passive investments, it chose a different path, with stunning results.
Some Unsolicited Recession Survival Advice to Gen Z
Our economy is in a will-they-won’t-they relationship with the next big recession.
Uber, Lyft Drivers Switch to Teslas as High Gas Prices Squeeze Profit
Some Uber and Lyft drivers are finding that renting or buying a Tesla, the luxury electric car, is a more profitable option now amid soaring gas prices that have upended the economics of gig work.
Should European Banking Really Be More Like US Banking?
It’s easy to be carried away: Top banking regulators are hungry for the efficiency, profitability and better service that pan-European banks could deliver.
I Haven't Seen Bargains This Good in 20 Years
This bear market is punishing everyone and everything.
Market Is Shredding All the Time-Tested Ways to Chart Its Course
Options insurance. Hedging with Treasuries. Using sentiment to pick a bottom. The things that have lessened the pain of past equity selloffs are coming up short this time around.
Weekly Unemployment Claims: Down 2K
This morning's seasonally adjusted 229K new claims, down 2K from the previous week's revised figure, was above the Investing.com forecast of 227K.
Lifetime Income Fees vs. Costs: Look Beneath the Tip of the Iceberg
Lifetime income solutions are high on the wish lists of defined contribution (DC) plan participants, with the certainty of a guaranteed lifetime income stream ranking as the top feature in our surveys over the past decade.
The Emperor of All Risks
Because the consequences of leaving longevity unmanaged are likely to be the most devastating, advisors must act now to address it.
The Fixed Income Water is Getting Warmer
Given year-to-date fixed income returns, one would be forgiven if they never wanted to own the asset class again. Such a view, however, could prove costly as, for the first time in a year, areas of the market are starting to look attractive.
Credit Cards at 20%, Mortgages Near 6%: The Fed's Rate Hikes Are Already Having an Impact
US credit-card rates have soared past 20%, mortgage costs have climbed to the highest since 2008 and companies are having a harder time borrowing money.
CB LEI: Falls Again in May
The latest Conference Board Leading Economic Index (LEI) for May was down 0.4% from the April final figure of 118.8.
Everything You Wanted To Know About Bear Markets
Leo Tolstoy’s Anna Karenina opens with one of the most famous lines in world literature: “All happy families are alike, but every unhappy family is unhappy in its own way.”
US Jobless Claims Edge Lower, Reflecting Tight Labor Market
Applications for US unemployment insurance were little changed last week, suggesting the labor market remains exceptionally tight.
Investors Are Terrified, So Why Aren’t They Selling?
Investors are terrified.
Financial Stocks Are Cheaper Than Usual
Since the recession of 2008 in 2009, financial stocks in general have been trading at significantly lower valuations than normal.
Five Signs You Have a Lousy Succession Plan
Mistakes are easy to make but are easier to avoid if you know what a “bad” succession plan looks like.
How to Build a Diversified Crypto Allocation
Several avenues for diversifying cryptocurrency portfolios exist. Investors should weigh the costs and benefits of each of the following three methods.
Global Stock Rout Prompts Call for Back-to-Basics Investing
Traders unnerved by a selloff that hit stocks and bonds alike are looking for refuge, increasing the appeal of investments offering reliable returns such as shares that pay steady dividends.
Social Security: Whistling Past The $96 Trillion Graveyard
Social Security has a problem.
Politics Have Distorted Americans’ Views of the Economy
According to a recent survey, a majority of Republicans and a plurality of Democrats believe the US is in a recession. The question is how seriously to take their complaints.
Consumer Price Index: May Headline at 8.58%
The Bureau of Labor Statistics released the May Consumer Price Index data this morning. The year-over-year non-seasonally adjusted Headline CPI came in at 8.58%, up from 8.26% the previous month. Year-over-year Core CPI (ex Food and Energy) came in at 6.02%, down from 6.16% the previous month.
Why Inflation Is Hitting American Households Like Never Before
Economists like to strip food and energy out of their inflation calculations. They’re too volatile to be meaningful, they say. But for everyday Americans coping with exploding prices, those items are pretty much all they care about right now.
Does This CDO Come in Green? With ESG Everywhere, Buyers Beware
It started with bonds. Now even collateralized debt obligations (CDOs) come in green.
Today's Options Market Update
Stocks modestly lower ahead of tomorrow’s inflation report.
How I Learned to Stop Worrying, and Love the (Interest Rate) Bomb
The year 2022 sure has felt like a pretty bad one so far: interest rates and consumer prices have spiked up, and stock prices are sharply down. But, in terms of what really matters, many investors are better off than they were at the end of 2021–almost 5% better off for an investor in a diversified balanced portfolio.
How to Smash the Competition Using Advice-Only Planning
The advisors who figure out how to work with Generation Z will take your wealthy Baby Boomer clients away. Stop rolling your eyes and listen to why.
Coping with Finances While Coping with Grief
I’ve supported many clients through times of loss and transition such as divorces, deaths of parents or spouses, business failures, and natural disasters. Following are some of the things I’ve learned.
No Hurricane, Yet
JP Morgan CEO Jamie Dimon caused a stir lately when he talked about a "hurricane" hitting the US economy.
The Big Four Economic Indicators: May Employment
This commentary has been updated to include Friday morning's release of Nonfarm Employment. May saw 390K increase in total nonfarm payrolls. The unemployment rate remained at 3.6%. The Investing.com consensus was for 325K jobs gained.
Real-Life Strategies to Mitigate Sequence-of-Return Risk
I’m going to review the research on safe-spending rates and then critique common methods of risk mitigation. I’ll offer the practical methods to reduce sequence-of-return risk that I suggest to my clients.
Bear Markets Signal Leadership Change
Bear markets always signal a leadership change within the overall equity market. The leadership going into a bear market is rarely, if ever, the leadership coming out. Because of this rule of thumb, we view bear markets as periods of extreme opportunity.
US Labor Market to Show Emerging Dichotomy of Tightness, Risks
The likely moderation of US job growth in coming months will reflect a combination of hiring challenges in a remarkably tight labor market, shifts in spending patterns and outright soft spots within a handful of industries.
The Financial Impact of Grief and Loss
Being immobilized in grief can be deeply painful and damaging emotionally. It can be financially damaging, as well, limiting a person’s ability to make sound financial decisions that can affect their future. This is where objective help and support is essential.
Today’s Pensions Just Don’t Favor Millennials and Gen Z
Even in 2022, pensions still command an aura of reverence. A benefit where you work for one company for 30 years and then retire with a livable wage? And you don’t have to fret about picking investments? What’s not to like?
Three Stocks to Buy in This Bear
There’s a silver lining to the current bear market…
Are You Selling a Verb or a Noun?
Meet a woman driven to change investment regulation and understand why it’s important that she succeeds.
How to Handle the DOL’s New IRA Rollover Rule
How are advisors coping with the new Department of Labor (DOL) rollover rules? Here are a dozen observations.
The Big Four: Real Personal Income in April
Personal Income (excluding Transfer Receipts) in April rose 0.52% and is up 8.4% year-over-year. However, when adjusted for inflation using the BEA's PCE Price Index, Real Personal Income (excluding Transfer Receipts) MoM was up 0.27%. The real number is up 2.0% year-over-year. October through March revisions were made.
Leadership and Character on Memorial Day
Memorial Day deserves the great recognition it gets. Remembering the service of those who died for our country is a civic duty. This includes remembering, doing and acting in a manner that there is no doubt the character of military and finance leaders must be first.
How to Help the Sandwich Generation Assess LTC Risk
Advisors can help the sandwich generation assess their risk for LTC and protect financial goals with the right approach to insurance.
Inflation Forces Desperate Leaders to Try and Soften the Blow
The price of foods, fuels and other essential items are spiraling ever upward as Russia’s war on Ukraine compounds supply-chain woes stemming from the pandemic. Central banks may be in the driving seat when it comes to tackling inflation, but it’s governments that face the fallout and so are compelled to act.
Advisor Tax Mistake #3 – Skipping the Three Most Important (But Least Sexy) Tax Strategies
I want to draw your focus to the three most important, yet boring, tax strategies that every advisor should be discussing with every client.
How Breakaway RIAs Can Retain Annuity Trails
RIAs can be paid to service trails-paying annuities without a broker-dealer.
Which Investments Worked 40 Years Ago When Inflation Was This High?
The U.S. was experiencing some of the highest inflation in its history.
Measuring and Mitigating Risks to Retirement Spending
Rick, David and Govinda will identify the risk cycle, and explore how risk can be 'wrapped' with portfolio income insurance to provide a reliable stream of income. The certainty of lifetime income may give individual investors the assurance to not only spend confidently, but to allocate more to equities without the fear that a terrible market event will force them to spend much less than planned in retirement.
Beware of Faux Financial Planning
Whenever I surf television cable news channels, I see the plethora of ads for financial planning. But they are run by companies that sell financial products or are owned by huge insurance companies.
The Elusive Benefits of “Lite” Annuities
This article explores the benefits of annuities with lower explicit fees, a category I dubbed as “annuities Lite” in a previous article that focused on GLWBs.
Lessons from CalPERS LTC Insurance Crisis
Since the 1990s, the CalPERS sold LTC policies to its residents. The lawsuit over claims related to those policies illustrates the dangers clients face with government-sponsored insurance programs.
The 9.62% Opportunity in I Bonds
The best retirement-savings vehicle is one that few have heard about: I bonds. They offer a risk-free yield of 9.62%, yet the amount of I bonds issued is only a small fraction of the total volume of bond issuance by the U.S. Treasury. My guest today will explain that paradox.
This is also the 300th episode of the Gaining Perspective podcast, and no guest would be more appropriate than Zvi Bodie. He has eloquently and persuasively made the case for the financial services industry to provide products that respond to the needs of everyday investors.
Lacy Hunt: The Stability of the US Economy is at Stake
The Fed is at a crucial junction, according to Lacy Hunt. It has to contain inflation. If not, the stability of the U.S. economy over the longer term is seriously in doubt.
Top 10 Things Tax-Smart Advisors Do After Tax Day
Tax Day has come and gone.
Money Managers Are Swooping In to Fill Manhattan’s Office Void
At a time when New York towers are struggling with high vacancies and many workers are still remote, money managers are seeking to accommodate growing staff and encourage in-person collaboration with trendier digs. Along with tech companies, they’re helping to fill part of the void left from employers giving up space -- even as Manhattan’s office supply continues to grow faster than demand.
19 Reasons to Run Like the Wind from Direct Indexing!
I don’t care how many PhDs are going to argue against me; direct indexing is Wall Street’s attempt at squeezing more fees out of the America public using advisors as the pawns.
Ask Brad: Adding Client Value in a Way Few Advisors Do
While I am not a practice management guru, an experience I had this past year warrants sharing. it led to adding value to your clients in a way few of you do.
What Is the New IAR CE and Why Do We Need It?
The new Investment Advisor Rep CE requirement isn’t just more training required by regulators; it’s an opportunity for advisors to start or continue on the right path with clients.
We are On the Brink of a Global Downturn
Since 1992, The Belkin Report has used Michael Belkin’s proprietary forecasting model to project the performance of market sectors, groups, and specific stocks. It provides three‐ and 12‐month forecasts for financial markets based on rates of change. Because of its track record, The Belkin Report has become a trusted resource for top hedge funds, mutual funds, pension funds, insurance companies, family offices, and sovereign wealth funds across the globe.
“Don’t Be Bearish.” The Inevitable End Of Bad Advice
“Don’t be bearish.” That was the message delivered by a Wall Street Journal article in August 2021.
A Strategy for Volatile Markets in 2022
Investors often look for ways to enhance income, lower a portfolio’s overall expected volatility or even help manage taxable gains.
Fed ‘Not Out of Bullets’ Yet to Control Inflation: Milken Update
The Milken Institute Global Conference continues in Beverly Hills, California, bringing together investors, dealmakers, power brokers and celebrities to discuss markets and megatrends. Academics, sports stars, entrepreneurs and politicians among the thousands coming to the Beverly Hilton for the event, which runs through Wednesday.
Europe Outlook: A French Economic Evolution
Franklin Mutual Series’ Katrina Dudley sees President Emmanuel Macron’s re-election as a positive for the French economy and regional equity markets over the longer term.
Why Joe Namath May Be the Biggest Threat to Your Clients’ Retirement
“Agents are standing by” to help your clients make one of the most pivotal financial decisions of their retirement… a decision that will blindside you as their advisor and throw even the most carefully crafted retirement plan for a loss. Sometimes, a very big loss.
Avoid ‘Evil’ Bitcoin and Stay Sane: Investing Wisdom from Buffett and Munger
Warren Buffett has simple advice for investors as they stare down the worst inflation in decades: Invest in your own skills.
Is a Rejection of Classical Finance Justified?
In an ambitious new book, the economist Andrew Smithers rejects core “Newtonian” principles of economics, replacing them with radical departures from conventional wisdom. But as I will explain, some of Smithers’ theories fail meet the standard of empirical verification.
The Income Annuity is the Constrained Investor’s Life Jacket
Imagine that you have joined some friends for a day of fishing. About two miles offshore, you sense that something is wrong. The small, single engine boat’s handling has changed. There seems to be more. Use our premium service to add your company’s logo and send this to clients.
How to Avoid Going Broke From Surprise Medical Bills
There is a real fear about the cost of seeing a doctor and how it can impact your finances. Millions of Americans receive surprise medical bills each year. That includes insured individuals, according to research by the Peterson-KFF Health System Tracker. A new federal law, The No Surprises Act, went into effect Jan. 1, 2022, banning most unexpected medical charges.
Buffett Revs Up Deal Machine With Investors Set for Omaha Trek
After hanging in the shadows for most of the pandemic, the billionaire investor and his deputies have been ramping up Berkshire Hathaway Inc.’s acquisition machine -- snapping up shares of Occidental Petroleum Corp. and HP Inc. and striking an $11.6 billion deal to buy Alleghany Corp. The flurry of activity comes just as investors are set to flock to Omaha, Nebraska, for the conglomerate’s first in-person shareholder meeting since 2019.
The Big Freeze: Sanctioning Russia Raises Questions on Other Currencies
Sanctions on Russia’s foreign currency reserves will likely stymie the rise of the Chinese renminbi as a competitor to the U.S. dollar.
Five Ways to Create Urgency and Win Planning Business
Here are five ways to win new business and clients for life by creating urgency, so your prospects want to create a financial plan now with you.
Mark Carney Questions the Critics of Bankers' Climate Record
As chief architect of the finance industry’s biggest climate coalition, Mark Carney said banks and asset managers are doing a better job at steering capital away from fossil fuels than is implied by what he described as “clickbait” headlines.
Buck Up, Boomers. You're Still Better Off Than Your Parents.
This is a hard time to retire. The market is down 7% from last year and the rate of inflation has risen to 8.5%. Both are brutal to your bottom line when you're on a fixed income. But buck up! As bad as things seem, odds are you are in better shape than your parents or grandparents. And if they got through retirement comfortably, so will you.
Sorry Savers, Banks Don’t Want Your Money
Savers are about to learn one painful and one surprising lesson about interest rates and banks. First, just because the Federal Reserve is raising rates doesn’t mean the rate investors earn on their cash will rise as much — if at all. In fact, the financial repression in the form of zero rates suffered for more than a dozen years by those who are ultra conservative with their savings isn’t going away soon.
Wall Street Firms Make Crypto Push to Catch Up With ‘Cool Kids’
“Banks are forever going to be trying to play catchup,” said Michael Moro, CEO of digital currency prime brokerage Genesis. “Crypto is going to move way faster than banks can. We have every bank in the world pretty much having some sort of crypto, blockchain working group.”
How to Think About Annuities
Depending upon the annuity that is being recommended and its purpose, your discovery process should include these questions. This article is written for clients and can be forwarded to them using our Premium Membership Service.
Stock Bulls Wake Up From the Nightmare of a Dying Economy
The S&P 500 rose 1.6%, its best day since mid-March and only its second gain in seven sessions. The Russell 2000 Index of smaller firms added 2% in its strongest performance of April. Meanwhile, S&P sectors sensitive to the economy -- including consumer discretionary and real estate -- outperformed, with only energy closing lower.
The Case For Preferred Securities in a Rising Rate Environment
An often overlooked and underutilized fixed-income alternative, preferred securities offer investors compelling diversification and income opportunities in today's volatile, rising interest rate environment. With yields and returns comparable to high-yield fixed income, today's preferred securities have evolved into a distinct and attractive income-generating asset class.
Ask Brad: Are You Really a Big-Rig Truck Driver?
Comparing advisors to big-rig truck drivers makes more sense that you think, once you consider the eerie similarities in their business models.
Big Oil’s Windfall Creates a Quandary for the Industry
Six of the largest Western oil producers — BP Plc, Chevron Corp., ConocoPhillips, Exxon Mobil Corp., Shell Plc and TotalEnergies SE — are expected to generate free cash flow, after capital expenditure, of $163 billion this year.
Why RIAs Are Going to Lose in Retirement-Income Planning
Does the scenario below sound likely? If so, you are among the thousands of RIAs who are likely to lose significant assets over the next decade.
GLWB Lite: Lower Costs but Much Worse Benefits
While the lower fees associated with GLWB Lite products make them seem more attractive, the expected income is significantly lower than other annuities.
How to Plan Retirement Income for a Constrained Investor
In this article, I will explain how to structure an income strategy that best serves the needs of constrained investors. Demographic, economic, cultural, and social forces argue for a new approach to retirement planning.
2025: The Post-Ken Fisher World of Annuities
RIAs must align their communications, planning methodologies, and product set with the needs of retirees, especially women, whose chief priority is reliability of income more than return on investment.
Slower Growth in Q1
Real GDP, in the US, grew 5.5% in 2021, the fastest growth for any calendar year since the Reagan Boom in the mid-1980s.
The Biggest Risk to Portfolios Today
To start, let’s discuss what diversification is and what it is not.
Biden’s “Billionaires Tax” Affects More Than Billionaires
In his federal budget for fiscal year 2023 that he unveiled earlier this month, President Biden proposed a huge new tax increase on America’s wealthiest citizens.
How Much Should Advisors Charge Small Accounts?
For years, small accounts have been overcharged and underserved. I’m encouraged, however, by what I see some advisors doing, I wish the rest of the profession were inspired to similarly elevate the value provided for the price charged small clients.
Bitcoin 2022: We’re Still So Early
An estimated 30,000 people attended this week’s Bitcoin 2022 conference in Miami, which is rapidly becoming a major global crypto-finance hub.
Other Possibilities
Today we’ll consider the risks to my stagflation forecast. Note that’s different from the risks of my forecast, should it prove accurate. I’ve described those already but it’s important to ask how I might be wrong.