Target Date Funds

I often encounter individuals struggling with financial stress – whether it's saving for retirement, building an emergency fund, or paying down debt. To better understand these concerns, Barnum conducted a comprehensive study on the financial wellness of working Americans.

Prices can continue to rise, until they don’t. Have we reached the point where they don’t?

The PPA has made a mistake in designating an MA as a QDIA. Perhaps the drafters of the PPA were thinking about accounts that are actually managed, but those participants do not default, so that flavor of MA is not a QDIA, and is typically reserved for executives of the sponsoring firm.

The future is impossible to predict, but looking at the patterns around price/earnings ratios can provide some insight about what one might expect.

Many boomers are business owners who are selling their businesses. This article provides guidance for these retiring business owners, their heirs and their advisors. This article also discusses opportunities for investors to capitalize on this once-in-a-lifetime mass exodus of baby boomer business owners.

We are about to enter a new era – the era of the personal defined benefit pension. And I predict that over the next few years, it will be RIAs that deliver these personal plans to millions of Americans. Before I explain how this transformation will unfold, let me first explain why it must unfold.

’ll first summarize their projections and note what I think are some shockers. Then I’ll take a look at how accurate their past forecasts have been. Finally, I’ll conclude with what I’m changing in my own portfolio...

The professional development journey for financial professionals is best approached through a structured three-step process involving foundational designations, advanced level specializations, and niche market concentrations.

Some of America’s leading financial firms are hoping to sell the White House on what sounds like a compelling idea: Open employer-sponsored retirement plans to the private investments they manage, so regular folks can reap returns currently reserved for the wealthy.

While it’s true that every administration brings policy shifts that can directly impact retirement savings, the speed and breadth of what is currently being proposed feels like we are headed into unprecedented territory.

Finally, an innovation has arrived in 401(k) investing. PTDAs are new. They combine multiple target date glidepaths with managed accounts, potentially using the best of both. Because they are new, it will be easy to think of them all as being the same, but that is far from the truth.

In response to the 2008 stock market and real estate crash, the Federal Reserve stimulated the economy by reducing interest rates to (almost) zero under its zero interest-rate policy (ZIRP). It “printed money” that amazingly did not bring serious inflation, yet.

The Roaring 2020s have been very good so far, but not exceptional when examined in isolation. That said, when viewed in the context of the past 16 years, this record-breaking bull market is spectacular.

Wall Street is forecasting an 8% return in 2025. That’s below the 10.4% average nominal return over the past 99 years, but it is a forecast of even higher highs. Do you believe it? Will “The Bull” keep running this new year, or is it getting tired?

It’s that time of year again, when pundits are forecasting next year’s stock market performance. I believe investors are being gaslighted more than usual this year because the basic underlying assumptions are optimistic and unlikely.

Change is a catalyst that can drive innovation and help position businesses in all industries for sustained success. The adoption of wealthtech illustrates the transformative power of embracing change.

Wall Street expects the stock market to earn a return in 2025 that is similar to the average return over the past 100 years. Do you agree?

The odds are good that Santa won’t disappoint in 2024. Here’s the history of the past 99 Decembers, compared to the other months.

Short-term rates are going down because the Treasury is issuing related debt at lower rates. Meanwhile, long-term rates are going up because the Fed is not intervening.. The Fed is trapped in a vicious cycle. Can you see a way out?

Understanding how to help a couple explore each partner’s financial history and validate their goals and anxieties can make all the difference in helping them reach a middle ground without feeling sidelined or resentful.

Let's keep our client meetings focused and manageable. By doing so, we not only respect their time and attention but also increase the likelihood of them taking the necessary steps to achieve their financial goals.

Most of the time the yield on long-term bonds exceeds that on short-term bonds, in order to compensate for the greater risk attached to long-term debt. But until recently the yield curve was inverted, with short-term rates exceeding long-term rates. This happens when investors expect interest rates to decline in the future.

Protect yourself with Treasury Inflation Protected Securities (TIPS), precious metals, certain real estate like farmland, and other real assets.

I’ve identified long-term care as the greatest unsolved challenge in the field of goals-based retirement investing. This doesn’t make me Sherlock Holmes. Anyone who has requested a quote for LTCI knows we’ve got a problem.

There is a demographic that likes to work with you and consistently hires you – you probably just don’t have it defined for you and your team. If you don’t know who you work best with, there is no way that your prospect efforts will be profitable. Rather, they will be coincidental.

GAO reports are intended to improve industry practices. GAO failed in its target date fund report but succeeded in its conflicts of interest report.

The current approach to investment management has no sound basis and doesn’t work. There is a better way.

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.

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.

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.

The potential of AI in wealth management is undeniable, but realizing that potential requires more than just adopting the latest technology. By engaging advisors in the process, providing thorough training, and setting realistic expectations, firms can bridge the gap between C-suite optimism and frontline reality.

The “country” in this article is the wild and woolly market of small retirement savings plans (SRSPs) that have less than 100 participants. The “old men” are baby boomers who cannot afford to lose their lifetime savings. And the villain is the next stock market crash.

Decisions made by the Treasury get much less attention than those made by the Federal Reserve, but they can be even more consequential for interest rates — and the entire US economy.

Baby Boomers likely won’t have time to recover from the next crash. Their loss is also their heirs’ loss. There’s $70 trillion in play. Baby boomers shouldn’t be greater fools.

Baby boomers need to be concerned about worst cases because the rest of their lives could be ruined by the next crash, and with $70 trillion at risk the stakes are high for them and their heirs. So rather than averages, let’s look at worst cases. That’s what baby boomers need to protect against.

Financial advisors are increasingly turning to social media platforms to expand their client base. But in today’s rapidly evolving digital landscape, the traditional marketing funnel model – comprising awareness, engagement, and conversion stages – often falls short when applied to these platforms.

With the S&P 500 index up almost 18 percent since the beginning of this year, now may be a good time to check how well your retired or near retired clients’ household assets match up with their expected spending liabilities.

AI and automation will revolutionize the financial advisory industry. These technologies enhance efficiency, improve client communication, and enable data-driven decision-making. By 2035, AI will be integral to most advisory firms.

Large-cap U.S. stocks, as measured by the S&P 500, have dominated in both absolute and risk-adjusted terms. They are soaring. It’s the Roaring ’20s again!

The longer I spent working at a big firm, the more I came to understand that the advice I could offer was determined by decisions at the top. My input as an advisor was limited, which didn’t sit well with me, so I looked for a position that would allow me to offer unbiased financial advice.

It is essential for financial professionals to include a variety of sources of guaranteed income to give clients the freedom to worry less, gain confidence about the future and enjoy life more.

The next inflation wave will challenge the economy and the Fed. It will not be transitory. A pivot back toward a zero interest rate policy (ZIRP) will intensify the problem.

The GAO report was three years in the making. At $4 trillion and growing, target date funds are very important. The GAO report has the potential to improve the industry.

The rise of index funds has provided millions of Americans with a cheaper and more efficient way to invest. With more than $23 trillion in assets between them, BlackRock Inc., Vanguard Group Inc. and State Street Corp. have become the top shareholders in many US-listed companies.