In an era where lifespans are longer than ever, the traditional concept of retirement is evolving. You might be surprised by the unexpected words being used to describe life after career and the importance being placed on going beyond the word "retirement."
Don't miss this opportunity to reimagine your clients’ retirement plans. Join leading experts from MassMutual as they explore valuable research from the MIT AgeLab and how to help your clients define their retirement vision.
Taxes are top of mind for many. See what the US presidential candidates stand on tax policy as we enter the final weeks before the election. Our Bill Cass compares their plans.
With storm clouds forming above equities and fixed income markets, is now the right time for institutions to grab their private credit labeled umbrella?
In the last year, we’ve written about the poor performance of clean energy, while highlighting the strong long-term outlook for the sector and the attractive valuations. These are typically the sorts of things we focus on…valuations and the long-term fundamental prospects for companies. We tend to shy away from overanalyzing short-term market dynamics.
This series has been updated to include the September release of the consumer price index as the deflator and the monthly employment update. The latest hypothetical real (inflation-adjusted) annual earnings are at $51,106, down 6.7% from over 50 years ago. After adjusting for inflation, hourly earnings are below their all-time high from April 2020.
The puck has certainly moved since our last market commentary. This month, we argue that the needle on portfolio construction should move with it. Equities have been the driver of returns for much of the last few years.
Underlying US inflation rose more than forecast in September, representing a pause in the recent progress toward moderating price pressures.
Let's take a close look at September's employment report numbers on Full and Part-Time Employment. The latest data shows that 82.6% of total employed workers are full-time (35+ hours) and 17.4% of total employed workers are part-time (<35 hours).
Private capital – encompassing private equity and private credit – is in the midst of a bit of a renaissance at the moment. IPO activity hit a peak in 2021, the year after the pandemic and then promptly plunged to levels not seen in years.
Britain’s stock-investing culture has been withering for years, with the only real growth coming from consultants, policymakers and commentators generating ideas on how to revive it. So why is Robinhood Markets Inc. so keen to expand in the UK? The draw may be more the country’s enthusiasm for online betting than allocating savings to equities.
It is hard to be “the most pro-union president in American history,” as Joe Biden likes to claim, while also leading an effort to “reimagine and rebuild a new economy,” as he has also promised. That’s because these goals are fundamentally incompatible: America’s unions no longer fit the modern economy.
Just like road trips can bring unexpected detours, the economy and financial markets are at their own crossroads: recession or soft landing?
Building a TIPS ladder gives us a license to spend and creates a spending floor. My TIPS ladder combined with Social Security provides a $10,000 monthly inflation-adjusted cash flow, though I’m delaying taking Social Security until age 70, of course.
GAO reports are intended to improve industry practices. GAO failed in its target date fund report but succeeded in its conflicts of interest report.
Thanks to new legislation, Americans with retirement plans now have easier access to cash in the event of a financial emergency. A provision in the Secure Act 2.0 that took effect this year allows individuals with 401(k)s and other retirement plans to withdraw up to $1,000 without triggering a 10% early distribution penalty.
The recent fears regarding the state of the U.S. employment sector seemed to have disappeared completely this morning as markets are ‘recalibrating’ their view on the U.S. economy going forward.
We are currently in the “everything market.” It doesn’t matter what you have probably invested in; it is currently increasing in value. However, it isn’t likely for the reasons you think. A recent Marketwatch interview with the always bullish Jim Paulson got his reasoning for the rally.
It’s my birthday week and I have guests and family gathering in the next room, so this will hopefully be a quick letter as well as ending with what will likely be controversial food for thought.
For registered investment advisors and others who provide financial advice, autumn is the start of a season loaded with opportunity.
Investors have been embracing actively managed fixed income ETFs in 2024. The latest suite of active ETFs to catch my eye are from State Street Global Advisors.
About eight in 10 investors (81%) believe they must fund their own retirement as opposed to relying on private and public pensions.
The expiration of the Tax Cuts and Jobs Act (TCJA) in 2025 could mean a tax increase for many taxpayers. But the impact varies widely based on income, location, and personal circumstances. Our Bill Cass shares the details.
While a strike by East Coast port workers is strangling the flow of goods from Maine to Texas and grabbing headlines, news of machinists at Boeing Co. about to enter their fourth week of picketing near Seattle has receded a bit into the background.
We believe municipal bonds currently offer a compelling balance of risk and reward for investors in higher tax brackets.
Because of recent significant investments, economic growth is occurring in long-neglected areas and changing the geography of development.
Explore the significant opportunities for wealth advisors in managing 401(k) plans. Our Mike Dullaghan explains how these plans can help both advisors and clients with financial growth and retirement planning.
While new tax proposals are grabbing election headlines, it’s important to remember that campaign rhetoric is not necessarily future policy.
Reaching age 65 with a net worth of $1 million dollars is a way to provide a comfortable and secure retirement. It is also a reasonable and achievable goal for many middle-class workers who would, quite accurately, never describe themselves as wealthy.
The last two years brought challenges for investors across all walks of life, but particularly for retirees.
The current approach to investment management has no sound basis and doesn’t work. There is a better way.
Just as the industrial revolution changed the way goods are manufactured and consumed, so the technological revolution will do for services. Once something can be made at scale, the market for it can expand and be segmented. The same goes for financial planning.
I attended and spoke at the European Blockchain Convention this week in Barcelona, where the energy around digital assets, Bitcoin and Web3 was palpable. Among the 6,000 attendees, there was a sense that we’re on the brink of a new era in finance and digital infrastructure.
Personal income (excluding transfer receipts) rose 0.23% in August and is up 5.4% year-over-year. However, when adjusted for inflation using the BEA's PCE Price Index, real personal income (excluding transfer receipts) was up 0.14% month-over-month and up 3.1% year-over-year.
At a finance conference in London this summer, four senior investment bankers set about persuading the room that the $1.7-trillion private credit market isn’t a threat to Wall Street. Barely three months later, two of them have jumped ship to seek their fortunes in the upstart asset class.
The TCJA is set to expire at the end of 2025, bringing unprecedented uncertainty. From potential tax rate hikes to changes in deductions, our Bill Cass highlights what you need to know to plan ahead.
Buyout heavyweights are increasingly resorting to the old-fashioned way of making money — actually running the companies they’ve bought.
America’s financial industry has long had trust issues. Never mind the Great Financial Crisis of 2007-08; mistrust of the markets dates back to at least 1929, if not the Dutch East India collapse of 1769. But this history has an upside: Financial institutions have a lot of experience creating systems to build, maintain and restore trust — and have learned lessons that can be applied across the economy.
When stock markets rise, the bullish narrative tends to dominate, overlooking the potential impact of market declines. This oversight stems from two main problems: a basic misunderstanding of math and time’s critical role in investing.
Policy, more likely to be dictated by economic circumstances, may not resemble generous populist proposals, which could limit their impact on stock markets.
In the span of a few days in late July, the market got live to two contrasting theories at once: that U.S. inflation is collapsing while Japanese inflation will remain stubbornly high.
Care about being a financial “doctor” and don't assume all is well because you have addressed the surface issue. Here are some ways to avoid delivering a poor bedside manner when clients need help.
News of that day included rioting in northern England, apparently in response to misinformation spread online claiming the person who stabbed to death three children and injured eight others in Southport was a Muslim immigrant.
Taxes may be the biggest fee your tax-sensitive clients are paying on their investment portfolios. And neither they nor you, their advisor, may be aware of just how big that fee is.
With only one week left in the fiscal year, it looks like the budget deficit for the federal government for Fiscal Year 2024 is going to come in at about $1.9 trillion, which is 6.7% of GDP.
Fiscal responsibility is not a priority in this election.
For families seeking to help their children save for higher education, 529 plans continue to gain broader appeal.
If you select appropriate colors that are most appealing to your target market, you’ll have an influential edge over your uninformed competitors.
MassMutual Head of Annuity Distribution Matt DiGangi recently sat down with VettaFi to discuss the increasing demand he is seeing for annuities, and how MassMutual has sought to meet client investor needs.
A popular rebuttal of the idea that the US ought to worry about its surging public debt is, “What about Japan?” America’s taxpayers are currently on the hook for 123% of gross domestic product, exceeding the previous record of 118% in the aftermath of the second world war, and the number is going up.
The ERISA Advisory Council is conducting hearings on Qualified Default Investment Alternatives (QDIAs), seeking recommendations for improvements. The big challenge is making better decisions for people who do not want to engage.
More than two years after first taking steps to contain swelling inflation, the Federal Reserve (the Fed) has taken a step back, suggesting monetary policy decision-makers have confidence that inflation will continue to move closer to the Fed’s target, allowing them to turn some attention to economic growth.
Many financial planning actions are linked to age milestones. Our Bill Cass highlights what key birthdays and other dates could mean for your financial plan.
Most American couples say they trust their partner regarding financial matters, but many reveal they aren’t necessarily in full agreement.
As the back-to-school season fills your social media feed with first-day photos and ads for the latest school supplies, it is also a prime opportunity for financial advisors to reconnect with clients about their education savings plans.
Panic is never a good investment strategy—nor is greed. Here's how disciplined investing helps navigate through volatile environments.
Active fixed income ETFs have taken a big leap this year per new research about active ETFs that may draw new investor eyes.
The term “Complexity Curve” refers to the growing intricacies that come with managing the wealth of high-net-worth individuals. As their assets grow, so do the complexities of their financial portfolios. This includes everything from business ownership and large qualified plans to complex estate planning issues.
Christine Benz is Morningstar’s director of personal finance and retirement planning, but she’s written a book that evokes Viktor Frankl as much as Bill Sharpe, aiming to go well beyond the mathematics of saving for, and living in, retirement.
The new thing in electricity is datacenters. The new new thing is … coal?
There’s a puzzle developing in the housing market — mortgage rates have fallen rapidly to their lowest level since early 2023, but would-be homebuyers don’t seem to care. It’s possible this is just a timing issue with rates falling during the slow season for transactions and election jitters giving buyers additional reason to hold off.
The Federal Reserve is widely expected to begin cutting interest rates at its September meeting. Market performance may depend on whether the pace of cuts is fast or slow.
The Federal Reserve (Fed), and markets, overreacted to the slightly higher inflation seen during the first quarter of the year. After that scare, the Fed went from expecting three cuts in the federal funds rate in 2024 to just one cut during its June dot plot release.
In this article, Russ Koesterich discusses why the next bout of market volatility may last a bit longer than previous downturns and how to best position your portfolio against this backdrop.
Perhaps it’s unsurprising that Donald Trump and Kamala Harris are saying nothing about the country’s biggest economic-policy challenge – namely, how to rein in public borrowing. With an election to win, they’d rather emphasize lower taxes and/or higher public spending.
As we move into the final stretch of 2024, many investors may be asking themselves: Is it time to give airline stocks another look? According to a new report from Bank of America (BofA), the answer might very well be yes
States enter fiscal 2025 maintaining stable reserves and moderating fixed costs, yet we expect many will need to make modest spending cuts due to exhaustion of federal pandemic aid.
Certificates of deposit (CDs) and Treasuries both can offer steady, predictable investment income—but how to decide between them? Here are five factors to help you choose.
How are bull and bear markets defined and how should you approach them as an investor?
While the pace of Federal Reserve cuts is in question, all roads lead to lower interest rates.
Institutional investors, which have traditionally made up private debt’s largest pool of money, are no longer a source of growth for the $1.7 trillion industry.
Determining the age when retirement account owners need to begin taking distributions is key for heirs to understand how to implement the 10-year rule for inherited accounts. Bill Cass explains what beneficiaries need to know.
Here’s a quote attributed to P. J. O’Rourke, an American author, journalist and political satirist: “There is a simple rule here, a rule of legislation, a rule of business, a rule of life: beyond a certain point, complexity is fraud.”
The safest way to ensure retirement security is to match, on a year-by-year basis, future spending needs with a reliable stream of inflation-adjusted income and maturing fixed-income assets. As we’ve already seen, a conventional stock/bond portfolio may not cut that mustard.
An analysis of the leadership reversal and market sell-off observed in recent weeks and why an emphasis on equities with consistent fundamentals is justified.
78 million baby boomers are about one-third of the voter-eligible population and 77 percent of them vote, so there are 60 million baby boomer votes. That 60 million is 38 percent of the 158 million votes cast in the 2020 presidential election. The baby boomer voters’ bloc is a big deal.
American consumers have surprised many economists this year by continuing to spend even as their savings shrink and the labor market cools. They’ve been aided in part by pockets of deflation that have boosted their purchasing power on things such as gasoline, automobiles and airfares.
Recent growth data have been muddled and subject to conflicting interpretations. There have been mixed signals from leading indicators and hard data and divergent readings across major economies.
Former President Donald Trump’s proposals for targeted tax breaks are resonating with battleground-state voters, who overwhelmingly approve of his ideas to eliminate taxes on tipped income and retirement benefits.
Most people see “blockchain” and “funds” in the same sentence and immediately think of pools of money betting on cryptocurrencies like Bitcoin and Ether. That isn’t how Singapore sees the utility of distributed ledgers.
In a recent discussion with Adam Taggart via Thoughtful Money, we quickly touched on the similarities between the U.S. and Japanese monetary policies around the 11-minute mark. However, that discussion warrants a deeper dive. As we will review, Japan has much to tell us about the future of the U.S. economically.
After a decade of consistent outperformance, Japanese small caps began underperforming their large cap peers in 2018, a trend that has accelerated since 2023.
In this edition, Harold Evensky explores the challenges facing sustainable and active funds, the implications of the new DOL Fiduciary Rule, and the value of long-term performance projections. With candid observations and critical analysis--read on to gain perspective on navigating the complex world of investing, the importance of risk management, and the role of fiduciary advisors in securing your financial future.
Successful advisors are persuasive. They understand persuasion is critical to converting prospects into clients and keeping them as clients.
Since the pandemic, Wall Street strategists have repeatedly underestimated the performance of the US stock market in their annual projections, leading to a mad dash to boost their outlooks in the back end of the year.
The August S&P Global US Manufacturing PMI™ fell to 47.9 in August from 49.6 in July, indicating a modest deterioration in business conditions for a second straight month. The latest reading was just below the forecasted reading of 48.0 and is the index's lowest level of the year.
I asked my great friend and business partner David Bahnsen, who is about as politically wired as anyone and one of the truly great economic and investment minds, to reflect on the intersection of politics and markets. It is a quick, balanced, and reasonable read...
As I write this, gold continues to trade above $2,500 an ounce after surging past the psychologically important level for the first time ever in mid-August. For seasoned gold mining investors, this should be a moment of validation. After all, the yellow metal has long been seen as the ultimate hedge against economic uncertainty.
Establishing the optimal workplace retirement plan follows a pecking order, which starts by prioritizing plan design over investments. Our Mike Dullaghan discusses the process.
With the release of July's report on personal incomes and outlays, we can now take a closer look at "real" disposable personal income per capita. At two decimal places, the nominal 0.21% month-over-month change in disposable income comes to 0.06% when we adjust for inflation. The year-over-year metrics are 3.09% nominal and 0.58% real.
College students may want to secure legal documents to ensure their parents can access important information and help them in medical emergencies. Our Bill Cass highlights the key documents students can prepare before leaving for college.
Retirement Income
Your Clients’ Retirement Strategy Reboot
In an era where lifespans are longer than ever, the traditional concept of retirement is evolving. You might be surprised by the unexpected words being used to describe life after career and the importance being placed on going beyond the word "retirement."
Don't miss this opportunity to reimagine your clients’ retirement plans. Join leading experts from MassMutual as they explore valuable research from the MIT AgeLab and how to help your clients define their retirement vision.
US Elections: How the Presidential Candidates Stand on Taxes
Taxes are top of mind for many. See what the US presidential candidates stand on tax policy as we enter the final weeks before the election. Our Bill Cass compares their plans.
Where Can Private Credit Fit in an Institutional Portfolio?
With storm clouds forming above equities and fixed income markets, is now the right time for institutions to grab their private credit labeled umbrella?
Misguided Mayhem
In the last year, we’ve written about the poor performance of clean energy, while highlighting the strong long-term outlook for the sector and the attractive valuations. These are typically the sorts of things we focus on…valuations and the long-term fundamental prospects for companies. We tend to shy away from overanalyzing short-term market dynamics.
Middle Class Hourly Wages as of September 2024
This series has been updated to include the September release of the consumer price index as the deflator and the monthly employment update. The latest hypothetical real (inflation-adjusted) annual earnings are at $51,106, down 6.7% from over 50 years ago. After adjusting for inflation, hourly earnings are below their all-time high from April 2020.
Moving the Needle
The puck has certainly moved since our last market commentary. This month, we argue that the needle on portfolio construction should move with it. Equities have been the driver of returns for much of the last few years.
US CPI Rises More Than Forecast, Stalling Inflation Progress
Underlying US inflation rose more than forecast in September, representing a pause in the recent progress toward moderating price pressures.
A Closer Look at Full-time and Part-time Employment
Let's take a close look at September's employment report numbers on Full and Part-Time Employment. The latest data shows that 82.6% of total employed workers are full-time (35+ hours) and 17.4% of total employed workers are part-time (<35 hours).
White Wolf Brings Private Capital Expertise to the Public Via LBO
Private capital – encompassing private equity and private credit – is in the midst of a bit of a renaissance at the moment. IPO activity hit a peak in 2021, the year after the pandemic and then promptly plunged to levels not seen in years.
Why Robinhood Is Seeking Merry Traders Overseas
Britain’s stock-investing culture has been withering for years, with the only real growth coming from consultants, policymakers and commentators generating ideas on how to revive it. So why is Robinhood Markets Inc. so keen to expand in the UK? The draw may be more the country’s enthusiasm for online betting than allocating savings to equities.
Unions Need to Join the 21st Century Economy
It is hard to be “the most pro-union president in American history,” as Joe Biden likes to claim, while also leading an effort to “reimagine and rebuild a new economy,” as he has also promised. That’s because these goals are fundamentally incompatible: America’s unions no longer fit the modern economy.
The U.S. Economy Is on Track for a Soft Landing
Just like road trips can bring unexpected detours, the economy and financial markets are at their own crossroads: recession or soft landing?
Four Easy Steps to Build a TIPS Ladder
Building a TIPS ladder gives us a license to spend and creates a spending floor. My TIPS ladder combined with Social Security provides a $10,000 monthly inflation-adjusted cash flow, though I’m delaying taking Social Security until age 70, of course.
Critiques of 2 Recent GAO Reports
GAO reports are intended to improve industry practices. GAO failed in its target date fund report but succeeded in its conflicts of interest report.
Raise the $1,000 Limit on Emergency 401(k) Withdrawals
Thanks to new legislation, Americans with retirement plans now have easier access to cash in the event of a financial emergency. A provision in the Secure Act 2.0 that took effect this year allows individuals with 401(k)s and other retirement plans to withdraw up to $1,000 without triggering a 10% early distribution penalty.
September Data Seems to Show Economy Rebounding
The recent fears regarding the state of the U.S. employment sector seemed to have disappeared completely this morning as markets are ‘recalibrating’ their view on the U.S. economy going forward.
The “Everything Market” Could Last A While Longer
We are currently in the “everything market.” It doesn’t matter what you have probably invested in; it is currently increasing in value. However, it isn’t likely for the reasons you think. A recent Marketwatch interview with the always bullish Jim Paulson got his reasoning for the rally.
The Crisis of Free Speech
It’s my birthday week and I have guests and family gathering in the next room, so this will hopefully be a quick letter as well as ending with what will likely be controversial food for thought.
Registered Investment Advisors - Turning Autumn Into Assets: Strategies for October’s Bounty
For registered investment advisors and others who provide financial advice, autumn is the start of a season loaded with opportunity.
An Active Approach to Target Maturity
Investors have been embracing actively managed fixed income ETFs in 2024. The latest suite of active ETFs to catch my eye are from State Street Global Advisors.
The Reality of Diminishing Retirement Security
About eight in 10 investors (81%) believe they must fund their own retirement as opposed to relying on private and public pensions.
How the Expiring TCJA Could Impact Your Tax Bill
The expiration of the Tax Cuts and Jobs Act (TCJA) in 2025 could mean a tax increase for many taxpayers. But the impact varies widely based on income, location, and personal circumstances. Our Bill Cass shares the details.
Boeing’s Frail Finances Give Strikers All the Power
While a strike by East Coast port workers is strangling the flow of goods from Maine to Texas and grabbing headlines, news of machinists at Boeing Co. about to enter their fourth week of picketing near Seattle has receded a bit into the background.
7 Reasons to Consider Municipal Bonds Now
We believe municipal bonds currently offer a compelling balance of risk and reward for investors in higher tax brackets.
America’s Changing Economic Landscape: A New Growth Trend
Because of recent significant investments, economic growth is occurring in long-neglected areas and changing the geography of development.
Unlocking the Treasure Chest: The Growing Opportunity of 401(k) Plans for Wealth Advisors
Explore the significant opportunities for wealth advisors in managing 401(k) plans. Our Mike Dullaghan explains how these plans can help both advisors and clients with financial growth and retirement planning.
The 2024 U.S. Election and the 2017 Tax Cuts and Jobs Act: Regardless of the Outcome, Taxes Are Likely to Rise
While new tax proposals are grabbing election headlines, it’s important to remember that campaign rhetoric is not necessarily future policy.
Could You Be a Middle Class Millionaire?
Reaching age 65 with a net worth of $1 million dollars is a way to provide a comfortable and secure retirement. It is also a reasonable and achievable goal for many middle-class workers who would, quite accurately, never describe themselves as wealthy.
For Retirees, Interest Rates & Inflation Remain Risks
The last two years brought challenges for investors across all walks of life, but particularly for retirees.
The Right Way to Solve Asset Management
The current approach to investment management has no sound basis and doesn’t work. There is a better way.
Your Next Financial Adviser Will Be on an App
Just as the industrial revolution changed the way goods are manufactured and consumed, so the technological revolution will do for services. Once something can be made at scale, the market for it can expand and be segmented. The same goes for financial planning.
How M-PESA Is Leading a Financial Revolution Across Africa
I attended and spoke at the European Blockchain Convention this week in Barcelona, where the energy around digital assets, Bitcoin and Web3 was palpable. Among the 6,000 attendees, there was a sense that we’re on the brink of a new era in finance and digital infrastructure.
The Big Four Recession Indicators: Real Personal Income Up 0.1% in August
Personal income (excluding transfer receipts) rose 0.23% in August and is up 5.4% year-over-year. However, when adjusted for inflation using the BEA's PCE Price Index, real personal income (excluding transfer receipts) was up 0.14% month-over-month and up 3.1% year-over-year.
Bonus-Starved Bankers Are Jumping Ship for Private Credit Riches
At a finance conference in London this summer, four senior investment bankers set about persuading the room that the $1.7-trillion private credit market isn’t a threat to Wall Street. Barely three months later, two of them have jumped ship to seek their fortunes in the upstart asset class.
Five Observations on the Expiration of the Tax Cuts and Jobs Act (TCJA)
The TCJA is set to expire at the end of 2025, bringing unprecedented uncertainty. From potential tax rate hikes to changes in deductions, our Bill Cass highlights what you need to know to plan ahead.
Private Equity Calls in Experts to Fix Firms They Can’t Sell
Buyout heavyweights are increasingly resorting to the old-fashioned way of making money — actually running the companies they’ve bought.
Wall Street Has Proven That Trust Can Be Rebuilt
America’s financial industry has long had trust issues. Never mind the Great Financial Crisis of 2007-08; mistrust of the markets dates back to at least 1929, if not the Dutch East India collapse of 1769. But this history has an upside: Financial institutions have a lot of experience creating systems to build, maintain and restore trust — and have learned lessons that can be applied across the economy.
Market Declines And The Problem Of Time
When stock markets rise, the bullish narrative tends to dominate, overlooking the potential impact of market declines. This oversight stems from two main problems: a basic misunderstanding of math and time’s critical role in investing.
2024 Elections: Big Bark, Little Bite
Policy, more likely to be dictated by economic circumstances, may not resemble generous populist proposals, which could limit their impact on stock markets.
Just Like That, Japan Is Rallying Again
In the span of a few days in late July, the market got live to two contrasting theories at once: that U.S. inflation is collapsing while Japanese inflation will remain stubbornly high.
Look Beyond the Bump
Care about being a financial “doctor” and don't assume all is well because you have addressed the surface issue. Here are some ways to avoid delivering a poor bedside manner when clients need help.
Change Required: Immigration Reform is an Economic Necessity
News of that day included rioting in northern England, apparently in response to misinformation spread online claiming the person who stabbed to death three children and injured eight others in Southport was a Muslim immigrant.
Value of an Advisor: T Is for Tax-Smart Planning and Investing
Taxes may be the biggest fee your tax-sensitive clients are paying on their investment portfolios. And neither they nor you, their advisor, may be aware of just how big that fee is.
The Budget Blowout
With only one week left in the fiscal year, it looks like the budget deficit for the federal government for Fiscal Year 2024 is going to come in at about $1.9 trillion, which is 6.7% of GDP.
The Debate Over Debt and Deficits
Fiscal responsibility is not a priority in this election.
529 Plans Passed a New Savings Milestone. Here’s Why
For families seeking to help their children save for higher education, 529 plans continue to gain broader appeal.
These Six Influential Colors Can Make or Break Your Business
If you select appropriate colors that are most appealing to your target market, you’ll have an influential edge over your uninformed competitors.
Demand Is High for Annuities as Client Needs for Guaranteed Retirement Income Grow
MassMutual Head of Annuity Distribution Matt DiGangi recently sat down with VettaFi to discuss the increasing demand he is seeing for annuities, and how MassMutual has sought to meet client investor needs.
America’s Fiscal Exceptionalism Is All Too Real
A popular rebuttal of the idea that the US ought to worry about its surging public debt is, “What about Japan?” America’s taxpayers are currently on the hook for 123% of gross domestic product, exceeding the previous record of 118% in the aftermath of the second world war, and the number is going up.
Recommendations to the ERISA Advisory Council on QDIAs
The ERISA Advisory Council is conducting hearings on Qualified Default Investment Alternatives (QDIAs), seeking recommendations for improvements. The big challenge is making better decisions for people who do not want to engage.
What a Lower Interest Rate Means to the Market
More than two years after first taking steps to contain swelling inflation, the Federal Reserve (the Fed) has taken a step back, suggesting monetary policy decision-makers have confidence that inflation will continue to move closer to the Fed’s target, allowing them to turn some attention to economic growth.
Age Milestones Can Trigger Financial Planning Actions
Many financial planning actions are linked to age milestones. Our Bill Cass highlights what key birthdays and other dates could mean for your financial plan.
Hot-Button Financial Questions Couples Face in Retirement & Beyond
Most American couples say they trust their partner regarding financial matters, but many reveal they aren’t necessarily in full agreement.
Back to School, Back to Saving!
As the back-to-school season fills your social media feed with first-day photos and ads for the latest school supplies, it is also a prime opportunity for financial advisors to reconnect with clients about their education savings plans.
Panic Is Not a Strategy—Nor Is Greed
Panic is never a good investment strategy—nor is greed. Here's how disciplined investing helps navigate through volatile environments.
Active Fixed Income ETFs Have Seen Flows Jump in 2024
Active fixed income ETFs have taken a big leap this year per new research about active ETFs that may draw new investor eyes.
The Complexity Curve and Excelling with High-Net-Worth Clients
The term “Complexity Curve” refers to the growing intricacies that come with managing the wealth of high-net-worth individuals. As their assets grow, so do the complexities of their financial portfolios. This includes everything from business ownership and large qualified plans to complex estate planning issues.
Retirement Beyond the Numbers
Christine Benz is Morningstar’s director of personal finance and retirement planning, but she’s written a book that evokes Viktor Frankl as much as Bill Sharpe, aiming to go well beyond the mathematics of saving for, and living in, retirement.
AI Heralds a New Deal for Old Coal Plants
The new thing in electricity is datacenters. The new new thing is … coal?
Mortgage Rates Puzzle Is a Worry for Housing and the Fed
There’s a puzzle developing in the housing market — mortgage rates have fallen rapidly to their lowest level since early 2023, but would-be homebuyers don’t seem to care. It’s possible this is just a timing issue with rates falling during the slow season for transactions and election jitters giving buyers additional reason to hold off.
Schwab Market Perspective: Fed Watch
The Federal Reserve is widely expected to begin cutting interest rates at its September meeting. Market performance may depend on whether the pace of cuts is fast or slow.
The Federal Reserve: Between a rock and a hard (market) place
The Federal Reserve (Fed), and markets, overreacted to the slightly higher inflation seen during the first quarter of the year. After that scare, the Fed went from expecting three cuts in the federal funds rate in 2024 to just one cut during its June dot plot release.
Why the Next Spike in Market Volatility May Last
In this article, Russ Koesterich discusses why the next bout of market volatility may last a bit longer than previous downturns and how to best position your portfolio against this backdrop.
The US Is Locked in a State of Debt Denial
Perhaps it’s unsurprising that Donald Trump and Kamala Harris are saying nothing about the country’s biggest economic-policy challenge – namely, how to rein in public borrowing. With an election to win, they’d rather emphasize lower taxes and/or higher public spending.
It’s Time to Reconsider Airline Stocks. Here Are Four Reasons Why.
As we move into the final stretch of 2024, many investors may be asking themselves: Is it time to give airline stocks another look? According to a new report from Bank of America (BofA), the answer might very well be yes
Municipal Bonds: Fiscal 2025 State Outlook
States enter fiscal 2025 maintaining stable reserves and moderating fixed costs, yet we expect many will need to make modest spending cuts due to exhaustion of federal pandemic aid.
CD or Treasury? Five Factors to Consider
Certificates of deposit (CDs) and Treasuries both can offer steady, predictable investment income—but how to decide between them? Here are five factors to help you choose.
Bull vs. Bear: Understanding Market Phases
How are bull and bear markets defined and how should you approach them as an investor?
Federal Reserve: On the Road Again
While the pace of Federal Reserve cuts is in question, all roads lead to lower interest rates.
Private Debt Looks for Growth as Traditional Capital Flatlines
Institutional investors, which have traditionally made up private debt’s largest pool of money, are no longer a source of growth for the $1.7 trillion industry.
Unwinding the 10-Year Rule for Inherited Retirement Accounts
Determining the age when retirement account owners need to begin taking distributions is key for heirs to understand how to implement the 10-year rule for inherited accounts. Bill Cass explains what beneficiaries need to know.
It's Increasingly Difficult to Defend Your Complex Portfolios
Here’s a quote attributed to P. J. O’Rourke, an American author, journalist and political satirist: “There is a simple rule here, a rule of legislation, a rule of business, a rule of life: beyond a certain point, complexity is fraud.”
Why Should You Care When Stocks Plunge?
The safest way to ensure retirement security is to match, on a year-by-year basis, future spending needs with a reliable stream of inflation-adjusted income and maturing fixed-income assets. As we’ve already seen, a conventional stock/bond portfolio may not cut that mustard.
Emphasize Consistency to Navigate Volatility
An analysis of the leadership reversal and market sell-off observed in recent weeks and why an emphasis on equities with consistent fundamentals is justified.
60 Million Baby Boomer Votes Sway the Presidential Election
78 million baby boomers are about one-third of the voter-eligible population and 77 percent of them vote, so there are 60 million baby boomer votes. That 60 million is 38 percent of the 158 million votes cast in the 2020 presidential election. The baby boomer voters’ bloc is a big deal.
Americans Have a New Piggy Bank to Raid — Their Houses
American consumers have surprised many economists this year by continuing to spend even as their savings shrink and the labor market cools. They’ve been aided in part by pockets of deflation that have boosted their purchasing power on things such as gasoline, automobiles and airfares.
Back to School: Macro Cliff Notes and a Look Ahead
Recent growth data have been muddled and subject to conflicting interpretations. There have been mixed signals from leading indicators and hard data and divergent readings across major economies.
Voters Love No Tax on Tips, But Split Over $25,000 Housing Help
Former President Donald Trump’s proposals for targeted tax breaks are resonating with battleground-state voters, who overwhelmingly approve of his ideas to eliminate taxes on tipped income and retirement benefits.
Why Singapore Is Bringing Blockchain Into Mutual Funds
Most people see “blockchain” and “funds” in the same sentence and immediately think of pools of money betting on cryptocurrencies like Bitcoin and Ether. That isn’t how Singapore sees the utility of distributed ledgers.
Japanese Style Policies And The Future Of America
In a recent discussion with Adam Taggart via Thoughtful Money, we quickly touched on the similarities between the U.S. and Japanese monetary policies around the 11-minute mark. However, that discussion warrants a deeper dive. As we will review, Japan has much to tell us about the future of the U.S. economically.
Small Wonders: Overlooked Japan Small Caps Poised for Resurgence
After a decade of consistent outperformance, Japanese small caps began underperforming their large cap peers in 2018, a trend that has accelerated since 2023.
Navigating the Investment Landscape: Insights and Warnings
In this edition, Harold Evensky explores the challenges facing sustainable and active funds, the implications of the new DOL Fiduciary Rule, and the value of long-term performance projections. With candid observations and critical analysis--read on to gain perspective on navigating the complex world of investing, the importance of risk management, and the role of fiduciary advisors in securing your financial future.
Evidence-Based Persuasion Secrets
Successful advisors are persuasive. They understand persuasion is critical to converting prospects into clients and keeping them as clients.
Wall Street Strategists Face Their Own Short Squeeze
Since the pandemic, Wall Street strategists have repeatedly underestimated the performance of the US stock market in their annual projections, leading to a mad dash to boost their outlooks in the back end of the year.
S&P Global US Manufacturing PMI™: Lowest Level of 2024
The August S&P Global US Manufacturing PMI™ fell to 47.9 in August from 49.6 in July, indicating a modest deterioration in business conditions for a second straight month. The latest reading was just below the forecasted reading of 48.0 and is the index's lowest level of the year.
Your Portfolio and the Election
I asked my great friend and business partner David Bahnsen, who is about as politically wired as anyone and one of the truly great economic and investment minds, to reflect on the intersection of politics and markets. It is a quick, balanced, and reasonable read...
Why Gold Stocks Could Be a Contrarian Investor’s Dream Right Now
As I write this, gold continues to trade above $2,500 an ounce after surging past the psychologically important level for the first time ever in mid-August. For seasoned gold mining investors, this should be a moment of validation. After all, the yellow metal has long been seen as the ultimate hedge against economic uncertainty.
The Pecking Order of 401(K) Plan Design: A Bird’s Eye View
Establishing the optimal workplace retirement plan follows a pecking order, which starts by prioritizing plan design over investments. Our Mike Dullaghan discusses the process.
Real Disposable Income Per Capita Up 0.1% in July
With the release of July's report on personal incomes and outlays, we can now take a closer look at "real" disposable personal income per capita. At two decimal places, the nominal 0.21% month-over-month change in disposable income comes to 0.06% when we adjust for inflation. The year-over-year metrics are 3.09% nominal and 0.58% real.
Consider Packing a Legal Safety Net Before Students Leave for College
College students may want to secure legal documents to ensure their parents can access important information and help them in medical emergencies. Our Bill Cass highlights the key documents students can prepare before leaving for college.