Buying or selling a home is a complicated, expensive undertaking that presents an opportunity for you to deepen your client relationships. Advisor Mike Rodenbaugh of Boardwalk Financial Strategies shares his perspective on helping smooth a real estate transaction, providing important counsel on affordability, cash flow, retirement impact, mortgage financing and estate planning. For example, he says, “down payment sourcing creativity” may be needed for a client buying a new home before selling a current home.
As you hunt for yield with less exposure to market volatility, you may want to consider Interval Funds, an unlisted type of closed-end fund. John Cole Scott, chair of the nonprofit Active Investment Company Alliance, says Interval Funds have been around a long time but are now gaining “traction.” While they do not trade on an exchange, they are readily available from fund families and offer a range of asset classes including alternative-style investments. AICA is hosting a free online Interval Fund “boot camp” on March 31.
Closed-end funds are known for leveraged income generation, but yields can come from a range of sources, strategies and products. John Cole Scott, founder of the Active Investment Company Alliance and chief investment officer of CEF Advisors, offers his perspective on the current CEF landscape and challenges presented by the coronavirus, not to mention the presidential election and recession recovery. Scott also shares his excitement about the AICA online CEF conference on Aug. 13, featuring the “best and brightest” minds in the CEF industry.
Municipal Bond Closed-end Funds, like most investments, have felt the impact of the coronavirus-stricken economy. But Dave Lamb of Nuveen says Muni CEFs have rebounded well, especially those with higher quality credits. Despite potential concern of a recession-driven shortfall of taxes supporting munis, Lamb is optimistic about the future. He says it’s an “opportune time to invest in closed-end funds.” He expects discounts to continue to narrow and notes the low cost of leverage has helped lead many funds to increase distributions.
In recent years Business Development Companies may have caught your eye and your client’s attention as well. The growing BDC market offers broad access to potentially high-yielding private equity, if an alternative PE investment fits your portfolio needs.
As our pandemic-related troubles continue, stock dividends have been shrinking. The negative trend presents a challenge, especially for retirees and others who depend on their portfolio income.
Have your cake and eat it, too? Convertible bonds come with an equity option that may help you manage risk in today’s coronavirus-affected investment portfolios.
As we pursue economic recovery while battling the coronavirus, Warren Buffett seems optimistic. But he’s selling airline stocks, holding onto cash and not making new investments. What market bets are you making? How about CLO CEFs?
Are you a safe distance from portfolio risk? As the stock market struggles, risk reduction becomes more appealing to many.
As the coronavirus infects and injures markets worldwide, financial advisors are on the front lines, fighting the fear and uncertainty felt by their stressed-out clients.
Going from retirement saving to retirement spending, or ‘cracking the nest egg,’ may be a challenging transition. Jeff Holt of Morningstar says there’s a risk of being “too conservative.”
Social Security provides important support for millions of retirees. Steve Wendel of Morningstar and advisor Sheila Padden talk about the uncertainty that clouds the program’s future.
Do we face a retirement crisis? Most Americans may struggle financially in their golden years, says Steve Wendel of Morningstar. Advisor Sheila Padden of Padden Financial Planning says her clients’ biggest concerns are longevity risk and the cost of healthcare.
Use better assumptions to better understand retirement costs for clients, says David Blanchett, the head of retirement research at Morningstar.
In a new survey by Northern Trust’s FlexShares, advisors report a stress level that’s 23% higher than national norms, and yet their overall job satisfaction comes in at an impressive 79%.
Reverse mortgages are finding a home in many retirement plans. The income stream may help seniors continue to live at home. Be sure a reverse mortgage fits into the overall financial plan.
When to claim Social Security benefits is a big decision. Eligibility typically begins at age 62, but the longer you wait, the higher your monthly payout will be. The maximum age to start is 70.
The full US government is back to work, but many key data reports remain unavailable, casting a post-shutdown shadow of uncertainty. What’s missing? Numbers that regularly help Wall Street and Main Street make important decisions for the future.
In the current rising rate environment, Maury Fertig of Relative Value Partners suggests closed-end fund investors be “cautious” and alert for opportunities.
Fed rate hikes present a “challenging time” for investors, especially those concerned about inflation, says Dorothy Bossung of Lowery Asset Consulting.
Closed-end fund discounts generally widened and distribution reductions increased in the first quarter of 2018, says Mike Taggart of Nuveen.
Periods of volatility in the stock market are not uncommon and may present opportunities to closed-end fund investors, says Maury Fertig of Relative Value Partners.
As the April 17 federal income tax deadline approaches, advisor Dorothy Bossung of Lowery Asset Consulting stresses the importance of asset placement.
Maintaining the connection between investors and their advisors presents a key financial challenge, says Sean Walters of the Investments & Wealth Institute.
Income seekers may want to consider a range of investment products, including closed-end funds, says Mitchell Goldfeld of RPg Family Wealth Advisory.
Surprises in 2018 may mean investors will need more help from advisors to stay focused on the long term, says Sean Walters of the Investments & Wealth Institute.
When planning your long-term portfolio, look for uncorrelated assets to help achieve a balanced approach and diversification, financial pros suggest.
Advisors say the recent federal tax code reform helps businesses by reducing corporate rates and may present opportunity to individuals to “re-think” their tax strategies.
Inflation is expected to increase gradually over time, but a sudden spike could have negative impact on investors, financial professionals say.
Stocks began 2018 with a strong start and conditions appear favorable, but a pullback wouldn’t be surprising, financial professionals say.
Tax specialist Steven Siegel of The Siegel Group suggests ideas for those in or near retirement when considering their 2018 federal income taxes.
Prospects for closed-end funds remain “fairly strong” in 2018, says Alex Reiss of Stifel, who anticipates a potential increase in new issuance.
Looking back, closed-end funds generally had a “strong” year in 2017, benefiting investors, says analyst Alex Reiss of Stifel.
Energy-related Master Limited Partnerships, or MLPs, have faced challenges despite relatively stable prices in recent months, says Jesse Dashefsky of Morningstar.
US equities may continue their “good run” and the healthcare sector in particular may present opportunity to investors, says Travis Miller of Morningstar.
While the fixed income market has been relatively stable, it’s important to “know what you own” before potential volatility strikes, says Emory Zink of Morningstar.
New research shows financial advisor “gamma” may help improve portfolio returns, says Paul Ellenbogen of Morningstar.
One day investors may look beyond income potential when they consider investing in closed-end funds, says John Cole Scott of CEF Advisors.
Closed-end funds have a long history in the United States and continue to attract investors in pursuit of income, says Rennie McConnochie of Aberdeen.
Industry professionals say interest rates and leverage costs are important factors to consider when assessing the risk level of a closed-end fund.
Investors looking beyond stocks and bonds may want to consider closed-end funds containing alternative investments, say CEF industry professionals.
Viewed from a global perspective, closed-end funds offer a wide range of potentially attractive investments, including emerging market strategies, CEF pros say.
Closed-end fund demand has increased as investors continue to seek income in a low-yield environment, CEF pros say.
Closed-end fund discounts have narrowed, but opportunities may remain in certain areas of the market, CEF industry pros say.
Healthcare cost, government regulation and the lack of financial education pose threats to worry-free retirement, but also create opportunity, industry pros say.
Adding closed-end funds to your investment portfolio may be a way to help boost your retirement income, industry pros say.
More ways to create lifelong income, more advance planning and more financial education may help improve your retirement future, industry pros say.
