Target Date Funds

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.

The often-cited goal of having a $1 million retirement nest egg needs to be retired itself. Adjusted for inflation , it would take nearly $1.9 million to have the same purchasing power today as in 1999, when the oldest of millennials were just turning 18.

The Federal Reserve is expected to lower interest rates, but the economy and stock market don't need stimulation.

I have indicted the securities industry for spreading “a web of deceptions that have become conventional wisdom.” But a small part of the industry does provide products and services that are beneficial and necessary. That is the subject of this article.

Ongoing planning in retirement involves periodically assessing whether spending may be increased or must be decreased to remain on track.

Our profession is being transformed by powerful, AI-based technologies that will replace human-based financial advice. They will drive down costs, reduce valuations, and deflate the multiples paid in M&A transactions.

With the interest-rate peak being the highest in 15 years, now is the opportunity to lock in near-peak lifetime income payments while avoiding future stock market losses.

Having a comprehensive retirement income plan that is regularly updated, accommodates changes in spending needs, inflation, market fluctuations and taxes is crucial for peace of mind in retirement.

As a retirement economist — not to be confused with a retired economist, which are rare — I often find myself talking to Wall Street types who happen to be in charge of a lot of other people’s money.

There’s a lot of discussion about why prospects hire you, why they don’t follow your advice, and the value you add. Much of this discussion isn’t based on research, which is curious because there are studies on each subject.

The more strongly people buy into the rhetoric of their political parties, the more difficult it is to be pragmatic about their investments.

For high income earners, a 4.5% after-tax return is equivalent to an 8%+ pre-tax return. Whole-life insurance can provide the same after-tax return of an investment with a higher pre-tax return – but without the higher investment risk.

Beginning this year, the SECURE Act 2.0 allows owners of 529 plans to convert unused 529 funds to the beneficiary’s Roth IRA.

The S&P 500 Index blew past a series of troubling markers in its relentless rally to 5,000. Now, after Tuesday’s rout, investors are staring at a potentially long way down before they find support.

This article identifies 10 real-world considerations in tax efficient distribution planning from the perspectives of an academic (Wade Pfau, PhD), a practitioner (Joe Elsasser, CFP), and a CPA (Steven Jarvis).

Here are seven uncommon marketing tactics that were hyper-successful for the firms that used them.

It’s up to advisors to deploy technology without losing sight of what clients want. Consider these examples.

I'm going to predict the future. Not the coming year. Not the markets. But the trends that will emerge in 2024 and will shape the future, which advisory firms can prepare for now so that the strong, gusty winds of change will howl at their backs instead of in their faces.

Selecting the appropriate technologies for your wealth management firm is a daunting task, but by adhering to a systematic approach, you will identify the solutions that will drive your business forward.

With Americans living longer and deferring retirement for lots of reasons, the retirement planning landscape is changing. Employers are not offering pensions, and the age to maximize Social Security benefits is increasing. All these factors make planning for retirement income crucial. I explore this in depth with Matt DiGangi.

Inflation is not over. The next wave will be torturous and will last a long time.

I asked our authors and guest contributors the following question: Given the availability of spot bitcoin ETFs, would you recommend them (or any other cryptocurrency allocation) to your clients?

FIAs can provide a reliable "retirement paycheck" that can last as long as your clients are retired.

Here’s a look at some of the biggest winners and losers in 2023, plus a few investments that sat somewhere in the middle.

Educating clients, reaffirming their financial goals and addressing other key issues are vital tools for maintaining a steady course during volatile times.

Whatever you’ve been told about your retirement, odds are that it’s wrong. Saving enough for your retirement, and investing the right way, are truly among the hardest of all financial problems. In many ways, it’s more difficult than running a large endowment or hedge fund — and yet we all must do it.

We analyze a case study for a wealthier couple with $5.5 million in investment assets and a larger retirement spending goal.

Stock returns over the next 10 years may likely be lower than bond returns.

As an advisor specializing in retirement planning, I frequently work with professionals who want to explore early retirement.

Don’t waste your money on lead-generation programs, white-label content, or consultants who overpromise and fail to deliver.

The highest compliment I receive from clients is when they tell me they don’t feel like our relationship is transactional.

The TDF industry is dominated by a few firms that form an oligopoly that is hard to disrupt. It’s no surprise that non-oligarchs are spearheading the movement to personalization.