As longevity planning redefines the role of financial professionals, the focus is shifting from narrow financial expertise to comprehensive client care. Leveraging technology and an expanded team, longevity-planning financial professionals empower clients for a fulfilling and secure retirement journey.
Advisors who embrace longevity-planning and a longevity network will bridge the gap between financial expertise and the evolving needs of their clients in retirement. Join the experts at VettaFi and Hartford Funds for a webcast digging into this transformative approach to retirement.
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.
Public credit markets offer high quality investments with attractive yields and downside resilience, while we see growing longer-term opportunities in private markets.
“Compound market returns.” During bullish markets, there is inevitably a regurgitation of this myth that was contrived to extract capital from retail investors and place it in the hands of Wall Street.
We can and are building much taller skyscrapers. But they are impractical money losers because so much floor space is taken up by elevators. A new book explains the interplay between size and scale, and what it means for our economy and investments.
Common aphorisms and assumed truths about stock returns often imply the disappearance of risk over long horizons. Is that accurate?
The September S&P Global US Manufacturing PMI™ rose to 49.8 from 47.9 in August, signaling only a fractional decline in operating conditions. The September reading was higher than the expected 48.9 reading.
Hedge funds are in regulators’ sights again. Their risk-taking with borrowed money must be better monitored and will sometimes have to be limited, the head of a global group of supervisors told the Financial Times last week.
Change is inevitable. When those changes involve tax law, it is extremely important for clients to meet with their financial professional, tax advisor, and legal advisor to discuss any adjustments that may need to be made to their financial, retirement, or estate plan.
One change that is looming is the expiration of provisions that were passed under the Tax Cuts and Jobs Act of 2017 (TCJA). Many of the provisions for individuals, including the higher estate tax exemption and the lower individual income tax brackets, were temporary and will expire (“sunset”) December 31, 2025 without further congressional action.
My guests today are two members of the MassMutual team. Lina Storm is the advanced sales & sales enablement marketing director dedicated to MassMutual’s Strategic Distribution team. Kathryn Wakefield is director of advanced sales at MassMutual.
Rising real interest rates invariably trigger recessions. The residual impact of pandemic related behaviors delayed the impact in this cycle.
We hope you enjoy the latest Newsletter from Harold Evensky.
Personal income (excluding transfer receipts) rose 0.5% in August and is up 5.3% year-over-year. However, when adjusted for inflation using the BEA's PCE Price Index, real personal income (excluding transfer receipts) was up 0.1% month-over-month and 1.7% year-over-year.
With the release of August'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 0.18% month-over-month change in disposable income comes to -0.21% when we adjust for inflation. The year-over-year metrics are 6.76% nominal and 3.17% real.
The strike comes at an inflection point for automotive production.
In our latest Quarterly Letter, Ben Inker and John Pease discuss the new economic regime, how investors can prepare for a recession, and the merits of combining high quality and cheap assets in today’s environment.
If a teacher, electrician or autoworker buys a stock or a share in a mutual fund, the Securities and Exchange Commission aims to ensure they’re investing on a level playing field.
The MOVEit breach affected the clients of every wealth manager in America.
Historically, government shutdowns have not caused a major reaction in the markets. But shutdowns can increase market volatility, and an extended shutdown could have an impact on the overall economy.
Many advisors are finding their clients show little interest these days in how the markets are doing.
Too many industry “experts” make value out to be much more elusive and complicated than it is.
We have been given the mandate to show our capabilities by growing our books of business to “earn the right” to work with clients.
So, here’s an idea: Dedicate the revenue collected from the estate tax into a trust fund that finances early childhood education, spanning childcare to preschool.
The aim of this series is to move beyond the simplistic example of goals that exist at a single point in the future to consider retirement, the most common purpose for long-term investing for an individual.
An essential component of planning for retirement and old age is building financial resources to pay for LTC. Yet having enough money is not a guarantee of getting the best care you need when you need it.
Today, in a shock decision, the Bank of England (BoE) left its policy rate at 5.25% by the tightest possible majority vote of 5-4. All but one of 65 economists polled by Reuters had predicted that the BoE would raise the rate to 5.5%.
Wednesday’s Federal Reserve (Fed) decision to keep the federal funds rate unchanged wasn’t a surprise at all. Markets, as we argued last week, had predicted that the Fed was going to stay put and that is what it did.
We started RBA in 2009 primarily because we thought the US stock market was entering one of the biggest bull markets of our careers. However, most investors did not agree with our bullishness. Now, risk aversion seems a thing of the past.
For many wealth advisors, workplace retirement plans are either a burden or an afterthought, according to John Kutz, National Retirement Plan Strategist at Franklin Templeton. He and his team explore why embracing these plans can benefit their practice, and their clients.
BlackRock Inc. and other money managers spent years rolling out sustainable funds, seeking to capitalize on surging interest in ESG investing. Now they’re abandoning an increasing number of those products in the US amid political backlash and investor scrutiny.
The Franklin Templeton Fixed Income team believe that issuers that think critically about the environment in which they operate could outperform throughout the full market cycle compared with those who are slower to adapt.
Celebrating an exciting milestone: Franklin Income Fund turns 75. Learn more about this flagship strategy and read some fun facts from back in 1948.
Your prospects often don’t tell you everything you need to know to assess the depths of their problems, because they can’t articulate the context behind their surface-level description of their issues.
Rather than reacting to financial challenges and opportunities as they arise, local entrepreneurs are embracing new perspectives on change management by preparing for change beforehand.
Have you ever wondered why your closing ratio on seminar attendees rarely exceeds 40%?
Now seems like a good time to talk about wrappers and which ones are best for different situations. How do you decide whether to use an ETF, a mutual fund, or something else?
Markets are convinced that the Federal Reserve (Fed) is going to pause its interest rate campaign after it finalizes its Federal Open Market Committee (FOMC) meeting on Wednesday, September 20.
Despite substantial growth and huge advancements in public policy support, clean energy has had an abysmal stretch in the stock market the last two and a half years.
The University of Colorado Buffaloes are undefeated and suck up a lot of oxygen in the college football world.
Economists are playing a game of “can-you-top-this this,” seeing who can ramp up their US economic growth forecasts the most.
Playing Shakespeare’s King Lear is the crowning ambition for some actors, but in 2023 we’re seeing superstar hedge fund managers Daniel Och and Ray Dalio trying out for the role in real life.
Federal Reserve policymakers’ updated forecasts for their benchmark interest rate, due Wednesday, are looming as a key potential decider for a US Treasuries market at risk of a third straight year of losses.
If someone’s good enough to regularly trounce the market, they don’t want your money.
BlackRock and Human Interest have found that American workers earning less than the national average are not saving due to lack of access to saving tools. Broadening access requires an intuitive and automated approach to retirement savings.
If held until the bond is redeemed (either by call or maturity), the annual yield earned for the life of a bond is known upfront at the time of purchase. Knowing the return on an investment upfront makes long-term financial planning a much easier task.
The labor movement is having a moment. In a tight employment market, there is money to be had — or profits to be more generously shared — and workers have gotten some big wins recently. Even reality TV stars and NFL running backs are getting into it.
A recent paper analyzing the correlation between stock and bond returns going back to 1875 suggests the relationship of the past quarter century is shifting in an uncertain inflationary environment. The results might stimulate some investors to rethink their portfolio allocations.
Incorporating debt planning into your services helps your clients achieve a more comprehensive and sustainable financial future.
I've updated this series to include the August release of the consumer price index as the deflator and the monthly employment update. The latest hypothetical real (inflation-adjusted) annual earnings are at $49,010, down 8.1% from over 50 years ago. Hourly earnings are below their all-time high after adjusting for inflation.
In his latest memo, Howard Marks discusses the essential choice in both investing and sports. Should you go for more winners or try to eliminate losers? That is, should you emphasize aggressiveness or defensiveness? This is a key decision that every investor has to make thoughtfully, and the answer can be different for each person.
ESG has dominated advisors’ minds when it comes to looking at the current generation of young prospective clients. It remains a popular investment approach for millennial and Gen Z clients per surveys.
Higher yields on cash have allowed some de-risking.
Our commentary on household income distribution focuses on average household incomes over the 50+ year history of this data series. The analysis offers some fascinating insights into U.S. household incomes, but misses the implications of age for income. In this update, we examine household income from a different perspective with a focus on age bracket.
The benefits of RILAs vary significantly by design, and buffer RILAs have historically been a more attractive addition to a portfolio than floor RILAs.
Many boomers are invested in target-date funds that are not safe and do not provide the protection they desire.
It’s an important time for Medicare beneficiaries to optimize their healthcare coverage and costs, and financial advisors are in the perfect position to guide clients through this crucial planning opportunity.
Even though past performance doesn’t guarantee future results, investors should prepare for continued market volatility this month.
On the interest rate front, the Federal funds rate is now close to systematic benchmarks that have historically been consistent with prevailing core inflation, nominal GDP growth, and unemployment.
When you step back and think about it, it is hard to believe that this hugely important retirement benefit has only been around for just over 40 years.
Private credit lenders are just getting started in the world of consumer and asset based finance, according to Rob Camacho, Blackstone Inc.’s co-head of asset based finance within the firm’s Structured Finance Group.
Diversifying a portfolio means spreading the investments across a variety of asset classes, industries and geographies.
I've updated our monthly workforce analysis to include the latest employment report for August. The unemployment rate rose to 3.8% and the number of new non-farm jobs (a relatively volatile number subject to extensive revisions) came in at 187K.
Let's take a close look at August's employment report numbers on Full and Part-Time Employment. The latest data shows that 83.2% of total employed workers are full-time (35+ hours) and 16.8% of total employed workers are part-time (<35 hours).
I lost my dad, Alfred Munro Flaxington, this past weekend.
Last week we changed our economic forecast because the economy has remained stronger than we expected. We delayed the start of the recession to the first quarter of 2024 rather than the last quarter of 2023.
As multi-asset income investors, we seek to help a wide range of clients meet their income needs. The benefits of an income-centric approach are especially relevant for investors as they enter retirement – and that’s especially true today. We bring that to life with two case studies.
In this article, I shed light on 10 common pitfalls and provide strategies to avoid them, ultimately helping you add more value to your client relationships.
There’s no clearer way to say it. Leave these garbage phrases out of your marketing.
On August 25, Massachusetts’ highest court shocked the investment world by unanimously ruling against Robinhood and for the state’s fiduciary rule. Robinhood must change its ways to remain in business.
Advisors can capitalize on the expected transfer of wealth between generations, the expected wave of retirements among older advisors, and referrals from other professionals.
One of the hardest parts of planning for our loved ones with disabilities is getting started. It’s overwhelming. Thinking of who will care for your child when you or your partner cannot is not easy. While we realize no one will care for your child like you do, you need to plan for the day when you no longer can.
In this session, we talk about one tool that may help with some of the financial responsibilities for supporting your loved one while helping them stay qualified for means-tested benefits supplemental security income (SSI) and Medicaid. My guest will introduce the importance of planning ahead and maintaining eligibility for public benefits whether the family is wealthy or has limited means.
Given their overall credit risk versus safer government debt, corporate bonds may not get enough exposure in a retirement portfolio. However, they can serve a purpose as long as investors are aware of their nuances.
Investors seeking higher yields and relatively low risk, and are willing to sacrifice liquidity, will find attractive opportunities in interval funds that invest in senior-secured, sponsored middle-market loans.
The next time someone suggests that nonnormal returns are a problem with Monte Carlo, tell them that their concern is a nonissue.
You’re nearly there! You’re nearing the age when you can finally stop working and enjoy some well-earned rest. But there are a few more steps you should take before officially retiring, which will ensure greater financial stability and peace of mind in your later years.
Fitch’s recent downgrade of the U.S. debt rating alarmed investors as the deficit and debt steadily increased. The downgrade sent 10-year Treasury bond yields above 4%, causing concern about America’s deteriorating financial condition.
The New York Times, Wall Street Journal, New York Magazine and The Economist have all piled on, questioning Solomon’s performance in his day job as chief executive officer of Goldman Sachs Group Inc.
Charles Schwab’s Tom Generazio goes in-depth on best ETF trading practices. Armada ETFs’ Phil Bak spotlights the Private Real Estate Strategy via Liquid REITs ETF (PRVT). VettaFi’s Todd Rosenbluth discusses bitcoin ETFs, F/m Investments' mutual fund share class filing, Cramer ETFs, physical gold ETFs, and more.
Dropping a 100-page financial plan in favor of a simplified one-page plan delivers massive value to clients and wins over prospects.
AI is a tool to elevate and redefine job duties. Here are strategies for how AI can augment the work of fiduciary advisors while helping them stay relevant and competitive.
Taxable municipal bonds may be an attractive option for investors in lower tax brackets, but there are things investors should know before making a decision.
It’s hard to see your portfolio dip and not panic – especially as you near retirement. Coupled with record inflation, a dip might tempt you to sell your investments to drive cash flow.
So-called “finfluencers” are preying on naïve investors, promising unrealistic returns while generating excessive commissions for themselves. Their bait is an indexed-universal life (IUL) policy. Read this to avoid making a costly mistake.
Applying planning expertise is a very complicated art form, a skill that is acquired over time, but which can be accelerated if there were a way to capture many of things that soon-to-be-retired advisors have learned through years of practice.
Today we continue our study of the historical cycles suggesting a major crisis is in our near-term (5‒8 years) future. We don’t know the precise timing or nature of the crisis, but the patterns indicate one is coming and could be severe.
Many advisors are now providing customized wealth management services to their clients and their families, often across multiple generations.
Markets seem to be coming around to our Franklin Templeton Fixed Income CIO Sonal Desai’s view that the Fed will have to keep interest rates higher for longer, but now runaway fiscal deficits pose further upside risk to yields in the long term, she warns.
Econ on the Road Labor, Consumers, Inflation & Data A Kotok Commute Conversation with: Cameron Dawson, CIO at Newedge Wealth, Dave Nadig, Financial Futurist at VettaFi, and Barry Ritholtz, CIO at Ritholtz Wealth Management.
If this is what a bad year for the dollar looks like, I'll take it. Widespread predictions of a significant retreat after a bumper 2022 haven't come to pass.
Vanguard Group’s best-of-both-worlds stranglehold over the money-management industry is facing a new kind of challenger.
Retirement Income
Longevity is Changing Retirement: Are You Prepared?
As longevity planning redefines the role of financial professionals, the focus is shifting from narrow financial expertise to comprehensive client care. Leveraging technology and an expanded team, longevity-planning financial professionals empower clients for a fulfilling and secure retirement journey.
Advisors who embrace longevity-planning and a longevity network will bridge the gap between financial expertise and the evolving needs of their clients in retirement. Join the experts at VettaFi and Hartford Funds for a webcast digging into this transformative approach to retirement.
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.
Navigating Credit Markets Today – A Q&A With Mark Kiesel and Jamie Weinstein
Public credit markets offer high quality investments with attractive yields and downside resilience, while we see growing longer-term opportunities in private markets.
Compound Market Returns Are A Myth?
“Compound market returns.” During bullish markets, there is inevitably a regurgitation of this myth that was contrived to extract capital from retail investors and place it in the hands of Wall Street.
Why Are Elephants So Smart and Buildings So Short?
We can and are building much taller skyscrapers. But they are impractical money losers because so much floor space is taken up by elevators. A new book explains the interplay between size and scale, and what it means for our economy and investments.
Long-Horizon Investing, Part 2: Stocks are Always Risky
Common aphorisms and assumed truths about stock returns often imply the disappearance of risk over long horizons. Is that accurate?
S&P Global US Manufacturing PMI™: Slower Contraction in September
The September S&P Global US Manufacturing PMI™ rose to 49.8 from 47.9 in August, signaling only a fractional decline in operating conditions. The September reading was higher than the expected 48.9 reading.
Why Central Banks Will Soon Lend to Hedge Funds
Hedge funds are in regulators’ sights again. Their risk-taking with borrowed money must be better monitored and will sometimes have to be limited, the head of a global group of supervisors told the Financial Times last week.
Preparing for the Sunset of the TCJA Tax Relief
Change is inevitable. When those changes involve tax law, it is extremely important for clients to meet with their financial professional, tax advisor, and legal advisor to discuss any adjustments that may need to be made to their financial, retirement, or estate plan.
Preparing for the Sunset of the TCJA Tax Relief
Change is inevitable. When those changes involve tax law, it is extremely important for clients to meet with their financial professional, tax advisor, and legal advisor to discuss any adjustments that may need to be made to their financial, retirement, or estate plan.
One change that is looming is the expiration of provisions that were passed under the Tax Cuts and Jobs Act of 2017 (TCJA). Many of the provisions for individuals, including the higher estate tax exemption and the lower individual income tax brackets, were temporary and will expire (“sunset”) December 31, 2025 without further congressional action.
My guests today are two members of the MassMutual team. Lina Storm is the advanced sales & sales enablement marketing director dedicated to MassMutual’s Strategic Distribution team. Kathryn Wakefield is director of advanced sales at MassMutual.
Visions of Sugar Plums and Soft Landings
Rising real interest rates invariably trigger recessions. The residual impact of pandemic related
behaviors delayed the impact in this cycle.
Newsletter - September 2023
We hope you enjoy the latest Newsletter from Harold Evensky.
The Big Four Economic Indicators: Real Personal Income Rises in August
Personal income (excluding transfer receipts) rose 0.5% in August and is up 5.3% year-over-year. However, when adjusted for inflation using the BEA's PCE Price Index, real personal income (excluding transfer receipts) was up 0.1% month-over-month and 1.7% year-over-year.
Real Disposable Income Per Capita Down 0.2% in August
With the release of August'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 0.18% month-over-month change in disposable income comes to -0.21% when we adjust for inflation. The year-over-year metrics are 6.76% nominal and 3.17% real.
Walking Out On The Auto Industry
The strike comes at an inflection point for automotive production.
Beyond the Landing
In our latest Quarterly Letter, Ben Inker and John Pease discuss the new economic regime, how investors can prepare for a recession, and the merits of combining high quality and cheap assets in today’s environment.
Private Fund Investors Don’t Need the SEC’s Help
If a teacher, electrician or autoworker buys a stock or a share in a mutual fund, the Securities and Exchange Commission aims to ensure they’re investing on a level playing field.
Every Wealth Manager Needs to Know About MOVEit
The MOVEit breach affected the clients of every wealth manager in America.
Congress Scrambling to Avoid Government Shutdown
Historically, government shutdowns have not caused a major reaction in the markets. But shutdowns can increase market volatility, and an extended shutdown could have an impact on the overall economy.
Navigating Investor Apathy: A Candid Look at the Challenges Faced by Today’s Advisors
Many advisors are finding their clients show little interest these days in how the markets are doing.
How to Uncover Your Clients’ Definition of Value
Too many industry “experts” make value out to be much more elusive and complicated than it is.
As a Next Gen, Why Do I Need to Prove Myself?
We have been given the mandate to show our capabilities by growing our books of business to “earn the right” to work with clients.
Use the Estate Tax to Finance Early Childhood Education
So, here’s an idea: Dedicate the revenue collected from the estate tax into a trust fund that finances early childhood education, spanning childcare to preschool.
Long-Horizon Investing, Part 1: A Ton of Feathers
The aim of this series is to move beyond the simplistic example of goals that exist at a single point in the future to consider retirement, the most common purpose for long-term investing for an individual.
Why Clients Put Off Long-Term Care Planning
An essential component of planning for retirement and old age is building financial resources to pay for LTC. Yet having enough money is not a guarantee of getting the best care you need when you need it.
Bank of England: A surprise end to UK rate hikes?
Today, in a shock decision, the Bank of England (BoE) left its policy rate at 5.25% by the tightest possible majority vote of 5-4. All but one of 65 economists polled by Reuters had predicted that the BoE would raise the rate to 5.5%.
The Match Continues: The Fed vs. The Market
Wednesday’s Federal Reserve (Fed) decision to keep the federal funds rate unchanged wasn’t a surprise at all. Markets, as we argued last week, had predicted that the Fed was going to stay put and that is what it did.
Investors’ Shift From Fear to Greed Presents Historic Opportunities
We started RBA in 2009 primarily because we thought the US stock market was entering one of the biggest bull markets of our careers. However, most investors did not agree with our bullishness. Now, risk aversion seems a thing of the past.
Workplace Retirement Voice: Why Wealth Advisors Should Embrace Workplace Retirement Plans
For many wealth advisors, workplace retirement plans are either a burden or an afterthought, according to John Kutz, National Retirement Plan Strategist at Franklin Templeton. He and his team explore why embracing these plans can benefit their practice, and their clients.
BlackRock, State Street Among Money Managers Closing ESG Funds
BlackRock Inc. and other money managers spent years rolling out sustainable funds, seeking to capitalize on surging interest in ESG investing. Now they’re abandoning an increasing number of those products in the US amid political backlash and investor scrutiny.
Weathering the Storm: Exploring Climate Change Adaptation and the Investor’s Imperative
The Franklin Templeton Fixed Income team believe that issuers that think critically about the environment in which they operate could outperform throughout the full market cycle compared with those who are slower to adapt.
A Pioneering Income Strategy Celebrates 75 Years
Celebrating an exciting milestone: Franklin Income Fund turns 75. Learn more about this flagship strategy and read some fun facts from back in 1948.
Be Politely Skeptical with Prospects
Your prospects often don’t tell you everything you need to know to assess the depths of their problems, because they can’t articulate the context behind their surface-level description of their issues.
The Top Five Strategies for Working with Small Business Owners
Rather than reacting to financial challenges and opportunities as they arise, local entrepreneurs are embracing new perspectives on change management by preparing for change beforehand.
How Pre-Screening Avoids “Plate Lickers” at Seminars
Have you ever wondered why your closing ratio on seminar attendees rarely exceeds 40%?
VettaFi Voices On: Choosing Your Wrapper
Now seems like a good time to talk about wrappers and which ones are best for different situations. How do you decide whether to use an ETF, a mutual fund, or something else?
To Increase or Not to Increase: That Is the Question
Markets are convinced that the Federal Reserve (Fed) is going to pause its interest rate campaign after it finalizes its Federal Open Market Committee (FOMC) meeting on Wednesday, September 20.
Turbulence on the Path to Transformation
Despite substantial growth and huge advancements in public policy support, clean energy has had an abysmal stretch in the stock market the last two and a half years.
Higher Rates & A Shutdown On The Menu
The University of Colorado Buffaloes are undefeated and suck up a lot of oxygen in the college football world.
Bidenomics Is Having an Unusual Effect on Deficits
Economists are playing a game of “can-you-top-this this,” seeing who can ramp up their US economic growth forecasts the most.
Dalio’s Shakespearean Turn Is a Sign of the Times
Playing Shakespeare’s King Lear is the crowning ambition for some actors, but in 2023 we’re seeing superstar hedge fund managers Daniel Och and Ray Dalio trying out for the role in real life.
Bond Market at Risk of Third Annual Loss Needs a Dot-Plot Rescue
Federal Reserve policymakers’ updated forecasts for their benchmark interest rate, due Wednesday, are looming as a key potential decider for a US Treasuries market at risk of a third straight year of losses.
But, But, What about Buffett and Lynch?
If someone’s good enough to regularly trounce the market, they don’t want your money.
Lack of Access Is a Crucial Factor to Preventing Retirement Savings
BlackRock and Human Interest have found that American workers earning less than the national average are not saving due to lack of access to saving tools. Broadening access requires an intuitive and automated approach to retirement savings.
Locking in Target Returns
If held until the bond is redeemed (either by call or maturity), the annual yield earned for the life of a bond is known upfront at the time of purchase. Knowing the return on an investment upfront makes long-term financial planning a much easier task.
The Future of Unions Looks Very Different
The labor movement is having a moment. In a tight employment market, there is money to be had — or profits to be more generously shared — and workers have gotten some big wins recently. Even reality TV stars and NFL running backs are getting into it.
What Shifting Stock-Bond Correlations Mean for Your Money
A recent paper analyzing the correlation between stock and bond returns going back to 1875 suggests the relationship of the past quarter century is shifting in an uncertain inflationary environment. The results might stimulate some investors to rethink their portfolio allocations.
The Importance of Debt Management
Incorporating debt planning into your services helps your clients achieve a more comprehensive and sustainable financial future.
Middle-Class Hourly Wages as of August 2023
I've updated this series to include the August release of the consumer price index as the deflator and the monthly employment update. The latest hypothetical real (inflation-adjusted) annual earnings are at $49,010, down 8.1% from over 50 years ago. Hourly earnings are below their all-time high after adjusting for inflation.
Fewer Losers, or More Winners?
In his latest memo, Howard Marks discusses the essential choice in both investing and sports. Should you go for more winners or try to eliminate losers? That is, should you emphasize aggressiveness or defensiveness? This is a key decision that every investor has to make thoughtfully, and the answer can be different for each person.
Gen Z Clients: The Active ETF Investing Generation?
ESG has dominated advisors’ minds when it comes to looking at the current generation of young prospective clients. It remains a popular investment approach for millennial and Gen Z clients per surveys.
Higher Rates: Positive Values
Higher yields on cash have allowed some de-risking.
Median Household Incomes by Age Bracket: 1967-2022
Our commentary on household income distribution focuses on average household incomes over the 50+ year history of this data series. The analysis offers some fascinating insights into U.S. household incomes, but misses the implications of age for income. In this update, we examine household income from a different perspective with a focus on age bracket.
RILAs: Buffers are Still Much Better than Floors
The benefits of RILAs vary significantly by design, and buffer RILAs have historically been a more attractive addition to a portfolio than floor RILAs.
Coming Soon: Revenge of the Baby Boomers
Many boomers are invested in target-date funds that are not safe and do not provide the protection they desire.
Five Mistakes Advisors Make During Open Enrollment (And How to Avoid Them)
It’s an important time for Medicare beneficiaries to optimize their healthcare coverage and costs, and financial advisors are in the perfect position to guide clients through this crucial planning opportunity.
September, The Market’s Most Feared Month, Could Be A Golden Opportunity
Even though past performance doesn’t guarantee future results, investors should prepare for continued market volatility this month.
Central Bankers Wandering in the Woods
On the interest rate front, the Federal funds rate is now close to systematic benchmarks that have historically been consistent with prevailing core inflation, nominal GDP growth, and unemployment.
Remember These Investing Concepts When Planning Your Future
When you step back and think about it, it is hard to believe that this hugely important retirement benefit has only been around for just over 40 years.
Blackstone Says Private Credit Is Coming for Asset-Based Debt
Private credit lenders are just getting started in the world of consumer and asset based finance, according to Rob Camacho, Blackstone Inc.’s co-head of asset based finance within the firm’s Structured Finance Group.
Building Resilient Portfolios: The Power of Diversification
Diversifying a portfolio means spreading the investments across a variety of asset classes, industries and geographies.
U.S. Workforce Analysis: August 2023 Update
I've updated our monthly workforce analysis to include the latest employment report for August. The unemployment rate rose to 3.8% and the number of new non-farm jobs (a relatively volatile number subject to extensive revisions) came in at 187K.
A Deeper Look at Full-time and Part-time Employment
Let's take a close look at August's employment report numbers on Full and Part-Time Employment. The latest data shows that 83.2% of total employed workers are full-time (35+ hours) and 16.8% of total employed workers are part-time (<35 hours).
In Memory of My Dad, Alfred Munro Flaxington
I lost my dad, Alfred Munro Flaxington, this past weekend.
Changes to Our Forecast: Reasons Behind Our Decision
Last week we changed our economic forecast because the economy has remained stronger than we expected. We delayed the start of the recession to the first quarter of 2024 rather than the last quarter of 2023.
Why Investors in Retirement May Want to Consider an Income Approach
As multi-asset income investors, we seek to help a wide range of clients meet their income needs. The benefits of an income-centric approach are especially relevant for investors as they enter retirement – and that’s especially true today. We bring that to life with two case studies.
10 Medicare Mistakes Financial Advisors
In this article, I shed light on 10 common pitfalls and provide strategies to avoid them, ultimately helping you add more value to your client relationships.
Six Things Advisors Should Never Say
There’s no clearer way to say it. Leave these garbage phrases out of your marketing.
Massachusetts Scores a Victory for Fiduciary Advice
On August 25, Massachusetts’ highest court shocked the investment world by unanimously ruling against Robinhood and for the state’s fiduciary rule. Robinhood must change its ways to remain in business.
Three Opportunities To Grow Your Advisory Business Now
Advisors can capitalize on the expected transfer of wealth between generations, the expected wave of retirements among older advisors, and referrals from other professionals.
ABLE Accounts for the Disability Community
One of the hardest parts of planning for our loved ones with disabilities is getting started. It’s overwhelming. Thinking of who will care for your child when you or your partner cannot is not easy. While we realize no one will care for your child like you do, you need to plan for the day when you no longer can.
In this session, we talk about one tool that may help with some of the financial responsibilities for supporting your loved one while helping them stay qualified for means-tested benefits supplemental security income (SSI) and Medicaid. My guest will introduce the importance of planning ahead and maintaining eligibility for public benefits whether the family is wealthy or has limited means.
Corporate Bonds Can Be a Part of a Retirement Portfolio
Given their overall credit risk versus safer government debt, corporate bonds may not get enough exposure in a retirement portfolio. However, they can serve a purpose as long as investors are aware of their nuances.
The Performance of Private Direct Lending, Q2 2023 Update
Investors seeking higher yields and relatively low risk, and are willing to sacrifice liquidity, will find attractive opportunities in interval funds that invest in senior-secured, sponsored middle-market loans.
A Key Criticism of Monte Carlo is Unfounded
The next time someone suggests that nonnormal returns are a problem with Monte Carlo, tell them that their concern is a nonissue.
Transitioning Into Retirement: Financial Strategies For The Final Stretch
You’re nearly there! You’re nearing the age when you can finally stop working and enjoy some well-earned rest. But there are a few more steps you should take before officially retiring, which will ensure greater financial stability and peace of mind in your later years.
Deficit Surge Will Lead To Lower Rates, Not Higher
Fitch’s recent downgrade of the U.S. debt rating alarmed investors as the deficit and debt steadily increased. The downgrade sent 10-year Treasury bond yields above 4%, causing concern about America’s deteriorating financial condition.
The Ides of Goldman Sachs and the Fate of David Solomon
The New York Times, Wall Street Journal, New York Magazine and The Economist have all piled on, questioning Solomon’s performance in his day job as chief executive officer of Goldman Sachs Group Inc.
Best ETF Trading Practices, Private Real Estate Strategy ETF, & More
Charles Schwab’s Tom Generazio goes in-depth on best ETF trading practices. Armada ETFs’ Phil Bak spotlights the Private Real Estate Strategy via Liquid REITs ETF (PRVT). VettaFi’s Todd Rosenbluth discusses bitcoin ETFs, F/m Investments' mutual fund share class filing, Cramer ETFs, physical gold ETFs, and more.
To Deliver More Value, Simplify Your Financial Plans
Dropping a 100-page financial plan in favor of a simplified one-page plan delivers massive value to clients and wins over prospects.
The Evolving Dance of AI and Financial Advisors
AI is a tool to elevate and redefine job duties. Here are strategies for how AI can augment the work of fiduciary advisors while helping them stay relevant and competitive.
5 Things to Consider About Taxable Municipal Bonds
Taxable municipal bonds may be an attractive option for investors in lower tax brackets, but there are things investors should know before making a decision.
Don’t Give In to Inflation Panic
It’s hard to see your portfolio dip and not panic – especially as you near retirement. Coupled with record inflation, a dip might tempt you to sell your investments to drive cash flow.
Don’t Buy an Indexed-Universal Life Policy Until You Read This
So-called “finfluencers” are preying on naïve investors, promising unrealistic returns while generating excessive commissions for themselves. Their bait is an indexed-universal life (IUL) policy. Read this to avoid making a costly mistake.
The Wisdom Capture Project
Applying planning expertise is a very complicated art form, a skill that is acquired over time, but which can be accelerated if there were a way to capture many of things that soon-to-be-retired advisors have learned through years of practice.
The Science of Cycles
Today we continue our study of the historical cycles suggesting a major crisis is in our near-term (5‒8 years) future. We don’t know the precise timing or nature of the crisis, but the patterns indicate one is coming and could be severe.
C Is for Customized Experience and Family Wealth Planning
Many advisors are now providing customized wealth management services to their clients and their families, often across multiple generations.
On My Mind: The Structural Shift That Wasn’t
Markets seem to be coming around to our Franklin Templeton Fixed Income CIO Sonal Desai’s view that the Fed will have to keep interest rates higher for longer, but now runaway fiscal deficits pose further upside risk to yields in the long term, she warns.
Econ on the Road Labor, Consumers, Inflation & Data
Econ on the Road Labor, Consumers, Inflation & Data A Kotok Commute Conversation with: Cameron Dawson, CIO at Newedge Wealth, Dave Nadig, Financial Futurist at VettaFi, and Barry Ritholtz, CIO at Ritholtz Wealth Management.
The Dollar Is the Fortress China Struggles to Breach
If this is what a bad year for the dollar looks like, I'll take it. Widespread predictions of a significant retreat after a bumper 2022 haven't come to pass.
Vanguard Wannabe Faces SEC Battle to Mimic Tax-Slashing Funds
Vanguard Group’s best-of-both-worlds stranglehold over the money-management industry is facing a new kind of challenger.