If you have an aversion to the mathematics that go with the bond market, you’re not alone. It’s complicated and counter-intuitive, based in concepts that are hard to visualize.
Most consumers wait for things to go on sale before buying them, look for promo codes prior to purchasing something online, and suggest that discounts are the greatest influence on their purchase decisions around the holidays...
When the liquidity tide recedes, investors from sovereign wealth to billionaire family offices are getting even more impatient with hedge funds. They are discovering that a lot of these expensive money managers don’t really hedge, and the pivot toward private equity was the right decision after all.
There was a major development in 2006 that transformed how Americans invest for retirement. It solved one problem, but created another that will be causing extra pain to people who retire in this economy.
One obvious strategy in pursuit of an environmental, social and governance (ESG) mandate is to exclude fossil fuel stocks. But new research shows this has made the portfolio vulnerable to supply or demand shocks to energy.
Howard Marks’s latest memo argues that investors seeking superior performance must have the courage to depart from the pack, even though doing so means accepting the risk of being wrong. Thinking differently and better than others is key to outperformance, he explains, because in investing, it’s not enough to be right.
The era of a few giant tech firms controlling stock market gains is quickly coming to an end, according to activist investor Nelson Peltz.
After a working life of hard graft, it is only natural to look forward to health, wealth and happiness in retirement.
More Americans are relocating to Europe, driven across the Atlantic by the rising cost of living, inflated house prices, a surging dollar and political rancor at home.
Most people budget not for true emergencies — which are, thankfully, rare — but for what we might call predictable surprises.
These people, whose very job is to know the lessons of the past, either forgot them or chose to ignore them. Today we’ll look at how this manifested in the 2008 crisis period—and set up the conditions we face today.
The decision to annuitize at age 65 may be optimal in instances of extreme longevity (age 90-95+) or if there is a prolonged environment for stocks and bonds that is as bad or worse than any conditions experienced in the historical record.
After a record fundraising year, there are worries that private equity’s golden era is over.
The California Public Employees’ Retirement System sold about $6 billion of its stakes in private equity funds to second-hand buyers, severing ties with a slew of past managers and freeing up cash for new wagers.
Revenue above expectations, pandemic federal aid and reserves have strengthened states' financial outlook. But states will need to prepare as pandemic aid winds down and the economy slows.
With each passing day, the brave new world of cryptocurrencies is looking more like the perilous old world of Wall Street circa 1929 or 2008.
We think we could see a bullish back half of the year for equity markets. Our analysis follows in our Quarterly Strategy Report.
It took me a long, long time to write The End of Indexing.
“HODL,” an original misspelling taken on as a badge of courage by cryptocurrency investors, spread to “Meme stocks” during the runup in 2020 and 2021.
Since healthcare costs are the number one fear in retirement for Americans, this article will focus on which states are the least expensive to retire in based on healthcare costs.
What are the most common scenarios that give rise to private foundations converting to DAFs (or making a thoughtful decision not to convert), while preserving the original donor’s intent and satisfying the administrative concerns of surviving family members?
It came as a surprise when I found the annual report of the New Zealand SuperFund. While no one could fault it for sticking with passive investments, it chose a different path, with stunning results.
Social Security applies a substantially higher penalty on people subject to GPO for claiming widow(er) and spousal benefits prior to normal retirement age.
A number of key technical, sentiment and flow based indicators are suggesting we could see a relief in selling pressure over the coming weeks, and perhaps a countertrend rally in risk assets.
Over the last four years, we have argued that the glamour monopoly technology companies have a low multiplier effect in the U.S. economy
Believe it or not, we live in the best of times. It’s been a crazy few decades, with a pandemic, rising inequality, slowing growth and productivity, and major changes in the economy.
Who would want to be tasked with investing their own and other people’s money in companies run by weirdos and jerks? But that turns out to be one of the most important skill sets shared by successful venture capitalists.
Rising inflation, rate hikes, supply-chain problems and the Russia-Ukraine war have contributed to growing recession fears.
Gold and silver is money. Everything else is credit.
The Social Security benefit formula is short-changing a select group of retirees, and the losses are apt to exceed $25,000 over a lifetime. There is no effort to fix the flaw, so the concern is on-going.
Treasuries extended their slump in New York, driving the yield on the benchmark 10-year note up by the most in more than three weeks, as renewed inflation concerns and economic data supported expectations for multiple Federal Reserve rate hikes in coming months.
Even in 2022, pensions still command an aura of reverence. A benefit where you work for one company for 30 years and then retire with a livable wage? And you don’t have to fret about picking investments? What’s not to like?
The following is a hypothetical and fictional account of how big tech can disrupt the wealth management industry. A back-to-client focus is discussed. reminiscent of how Apple’s Mac OS empowered users and supplanted predecessor operating systems.
Since the 1990s, the CalPERS sold LTC policies to its residents. The lawsuit over claims related to those policies illustrates the dangers clients face with government-sponsored insurance programs.
The best retirement-savings vehicle is one that few have heard about: I bonds. They offer a risk-free yield of 9.62%, yet the amount of I bonds issued is only a small fraction of the total volume of bond issuance by the U.S. Treasury. My guest today will explain that paradox.
This is also the 300th episode of the Gaining Perspective podcast, and no guest would be more appropriate than Zvi Bodie. He has eloquently and persuasively made the case for the financial services industry to provide products that respond to the needs of everyday investors.
“That’s a great stock; I think I’ll take a big position in my portfolio.” That’s how all too many investors make their investment decisions. Mistake, big mistake. Use our Premium membership service to send this to clients and prospects with your firm’s logo.
The Fed is at a crucial junction, according to Lacy Hunt. It has to contain inflation. If not, the stability of the U.S. economy over the longer term is seriously in doubt.
Retirement is the most important goal clients discuss over the course of their professional relationship with advisors. One key piece is the way in which taxes are paid.
Since 1992, The Belkin Report has used Michael Belkin’s proprietary forecasting model to project the performance of market sectors, groups, and specific stocks. It provides three‐ and 12‐month forecasts for financial markets based on rates of change. Because of its track record, The Belkin Report has become a trusted resource for top hedge funds, mutual funds, pension funds, insurance companies, family offices, and sovereign wealth funds across the globe.
The Milken Institute Global Conference continues in Beverly Hills, California, bringing together investors, dealmakers, power brokers and celebrities to discuss markets and megatrends. Academics, sports stars, entrepreneurs and politicians among the thousands coming to the Beverly Hilton for the event, which runs through Wednesday.
The BOJ is trapped. It is conducting unlimited QE to keep rates low and weaken the yen, which promotes inflation.
Franklin Mutual Series’ Katrina Dudley sees President Emmanuel Macron’s re-election as a positive for the French economy and regional equity markets over the longer term.
Forward-thinking advisors have been searching for and employing analytics very carefully. This series will explore some of these metrics, along with their benefits and pitfalls. Today’s topic is capital markets assumptions.
In propping up Japan's economy and financial markets, its central bank indirectly provided liquidity to the world's financial markets. But the BOJ could unleash a liquidity vacuum felt around the world.
Many companies stack the deck in ways that often help their executives get big annual bonuses no matter how the business performs, Bloomberg Tax research shows. They “adjust” and boost the earnings numbers they use, or lower their own performance goals—making it more likely they’ll hit the targets that trigger bonus awards.
This is a hard time to retire. The market is down 7% from last year and the rate of inflation has risen to 8.5%. Both are brutal to your bottom line when you're on a fixed income. But buck up! As bad as things seem, odds are you are in better shape than your parents or grandparents. And if they got through retirement comfortably, so will you.
After a multi-decade pause, the winds of inflation have picked up. Only TIPS have been an effective hedge against inflation. Other asset classes have failed to varying degrees.
On May 29, Colombia could elect its very first leftist president should Gustavo Petro receive a majority of the vote. The former congressman and mayor of the capital city of Bogotá, Petro is an unabashed admirer of and Hugo Chávez.
For US states, spring marks budget season, a time to check the ledger board and allocate funds to entities and projects within the state—or cut back where needed.
Millennials took one look at their financial future and, early on, realized it was bleak. The YOLO generation started saving for retirement — stuffing away money in 401(k)-type accounts — nine years earlier than their baby boomer parents did, according to a new study.
If your tax planning makes your clients’ life more difficult, you’re doing something wrong.
Can I afford to retire? Is it the right time? Here is how I answer those questions from my clients.
We’ll tackle IRMAA in this article. I’ll provide you with information to teach you how you might be able to get rid of IRMAA.
If you are under 45 and live in America or Europe, the odds are this past year has been your first real experience with inflation. Other than a blip in 2008, inflation has barely topped 3% in the last 30 years.
Long-maturity Treasuries are contending with their biggest drawdown on record, at least according to their most popular exchange-traded fund.
In this article, I will explain how to structure an income strategy that best serves the needs of constrained investors. Demographic, economic, cultural, and social forces argue for a new approach to retirement planning.
The market was tough in the first quarter. Find out what it means for long-term investors.
Central to my market and macro outlook at present is the likelihood we are amid a growth cycle downturn that is looking to decelerate meaningfully in the coming months.
For years, small accounts have been overcharged and underserved. I’m encouraged, however, by what I see some advisors doing, I wish the rest of the profession were inspired to similarly elevate the value provided for the price charged small clients.
Now that inflation is back, it's not going away anytime soon. The Federal Reserve expects it to fall below 3% next year and eventually go back to 2%. But there are reasons to think that’s far too optimistic. We are living in a new world. Even after things get back to normal that could mean inflation averages 4% or even 5% for the foreseeable future.
People tend to associate environmental, social and governance investing with stock-picking, a way to sort through companies based on their ESG practices. But not every investor can be choosy about the companies they own. Big pension, endowment and sovereign wealth funds oversee tens of billions and even trillions of dollars, which means they have to own practically everything.
In my work with clients, one of the most important services I provide, in addition to coaching on finance, estate planning, and investing, is facilitating cross-generational conversations about what it means to have wealth, and especially about what it means to use wealth wisely.
Antti Ilmanen’s Investing Amid Low Expected Returns updates his 2011 Expected Returns, a volume considered by many the definitive work on the subject.
The last three years have been so relentlessly dismal — a global pandemic followed by the invasion of Ukraine — that it is tempting to idealize the old days. Just as the survivors of World War I looked back on the Edwardian era as one long country house weekend (“Stands the church clock at ten to three? And is there honey still for tea?”), so we observers of Ukraine’s agonies may think of the pre-Wuhan world as one of peace and prosperity. Yet in fact it was an era of sustained disappointment punctuated by the occasional crisis.
It's no secret that in fixed income markets, excess performance above the benchmark is difficult to achieve over the long run.
Banks are gearing up to offload billions of dollars in junk debt backing leveraged buyouts, counting on the nascent stability in the market to finally get rid of underwrites for businesses such as Wm Morrison Supermarkets Plc and Unilever Plc’s tea unit.
The U.S. government has long offered myriad contrivances and enticements to get Americans to save enough for a comfortable retirement — so far with woefully inadequate results. But why should it be involved at all? Why can’t people be responsible enough to prepare for an entirely foreseeable event?
Add this to the pandemic lesson book: People may be willing to give up their homes in high-cost, densely packed coastal cities, but they still want their coastal lifestyles — just with a little more space, cheaper real estate and warmer weather.
The yield curve's movements are unlikely to change the Fed's course.
The expected return from a roulette spin is negative: -5.26%.
Since market efficiency is the primary driver of the rise of passive investing and the demise of active management, the structure of wealth management investment offerings is at stake.
America is facing a retirement crisis. Most experts agree that a significant portion of the population will lack the resources to live comfortably after they stop working. This, in turn, will place an increasing burden on the country’s social safety net.
Yesterday, I laid out why I am not concerned, in general, about what a yield curve inversion means for the economy, while still being very aware of the increasing risks.
Unfunded pensions for state and local governments were once expected by some to sink the whole market.
Advisors need to understand how crypto markets work and how to make crypto part of a balanced portfolio to take advantage of this opportunity.
The same morning Russia invaded Ukraine, the people running the Church of England’s $5 billion pension fund decided they’d seen enough, and quickly went to work to clear their portfolio of Russian investments.
Since 2011, we have issued annual reports on the largest listed corporate defined benefit (DB) sponsors in the U.S., codenamed the $20 billion club.
U.S. politicians from New York to California are calling for public pensions to shed hundreds of millions of dollars in investments tied to Russia. So far, the retirement funds aren’t moving quickly to divest. In many cases, they can’t.
Interest-only variable annuity policies have zero commissions, no surrender charges and low annual M&E and admin fees plus various subaccounts that span traditional and alternative investment strategies.
This week’s news is seemingly all about Ukraine and Russia. It is a terrible situation. But as an economic matter, we still have serious economic challenges no matter how it develops.
Navigating the career risk associated with bubbles (especially superbubbles) has always been tricky and is one of the biggest failings in the investment management industry.
The unfettered boom in ESG debt has created some accounting concerns that are in urgent need of regulatory attention, according to Europe’s markets watchdog.
The world’s pension funds are growing as an ageing population puts more money aside to pay for retirement. The global total has doubled in the past decade to almost $57 trillion. But the biggest pool of savings risks missing out on both diversification and returns by restricting its investments to its domestic markets.
No, we did not run out of titles.
Online brokers like Robinhood Markets Inc. and crypto assets might get the headlines, but the Securities and Exchange Commission’s parallel effort to drag private-equity firms and hedge funds out of the shadows will have far more impact on far more lives.
Those nearing or in retirement are worried about what higher-than-expected inflation will mean. Here are a few things to consider to temper their anxiety.
You have a niche market selected, but now comes the tricky part: determining whether the niche is a viable client base. Here are 11 questions to help you assess whether you picked a good niche.
Hedge funds have long been criticized for underperforming the bull market in stocks for the past decade. But as markets get more challenging and interest rates climb, it’s their risk-management skills – not their performance record – that could underpin an upturn in the industry’s fortunes.
First the economy overheats, then winter comes to Wall Street. January was especially horrible for the cutting-edge investor, and February might be even worse. At the end of last month, big tech stocks were down nearly 8%, according to the New York Stock Exchange’s FANG+ index — and that was before shares of Meta Platforms Inc. (the company formerly known as Facebook) fell off a cliff last week.
IMO 2020 has contributed to higher shipping rates.
Defined Benefits
What’s Missing From Bond Markets Ahead of the CPI
If you have an aversion to the mathematics that go with the bond market, you’re not alone. It’s complicated and counter-intuitive, based in concepts that are hard to visualize.
The Paradox of Crowds
Most consumers wait for things to go on sale before buying them, look for promo codes prior to purchasing something online, and suggest that discounts are the greatest influence on their purchase decisions around the holidays...
Hedge Funds Deserve the Drubbing By Private Equity
When the liquidity tide recedes, investors from sovereign wealth to billionaire family offices are getting even more impatient with hedge funds. They are discovering that a lot of these expensive money managers don’t really hedge, and the pivot toward private equity was the right decision after all.
The Fatal Flaw in Your Retirement Plan’s Target Date Funds
There was a major development in 2006 that transformed how Americans invest for retirement. It solved one problem, but created another that will be causing extra pain to people who retire in this economy.
The Dangers of Screening Out Energy Stocks
One obvious strategy in pursuit of an environmental, social and governance (ESG) mandate is to exclude fossil fuel stocks. But new research shows this has made the portfolio vulnerable to supply or demand shocks to energy.
I Beg to Differ
Howard Marks’s latest memo argues that investors seeking superior performance must have the courage to depart from the pack, even though doing so means accepting the risk of being wrong. Thinking differently and better than others is key to outperformance, he explains, because in investing, it’s not enough to be right.
Billionaire Wharton Dropout Peltz Warns Big Tech Dominance Over
The era of a few giant tech firms controlling stock market gains is quickly coming to an end, according to activist investor Nelson Peltz.
Assuming You'll Retire Healthy Is an Expensive Mistake
After a working life of hard graft, it is only natural to look forward to health, wealth and happiness in retirement.
Americans Who Can’t Afford Homes Are Moving to Europe Instead
More Americans are relocating to Europe, driven across the Atlantic by the rising cost of living, inflated house prices, a surging dollar and political rancor at home.
Retirement Expenses Are Too Hard to Predict
Most people budget not for true emergencies — which are, thankfully, rare — but for what we might call predictable surprises.
Forgotten Lessons
These people, whose very job is to know the lessons of the past, either forgot them or chose to ignore them. Today we’ll look at how this manifested in the 2008 crisis period—and set up the conditions we face today.
Should Consumers Annuitize at Normal Retirement Age?
The decision to annuitize at age 65 may be optimal in instances of extreme longevity (age 90-95+) or if there is a prolonged environment for stocks and bonds that is as bad or worse than any conditions experienced in the historical record.
Billionaires Can’t Get Enough of Private Equity
After a record fundraising year, there are worries that private equity’s golden era is over.
Calpers Unloads Record $6 Billion of Private-Equity Stakes at Discount
The California Public Employees’ Retirement System sold about $6 billion of its stakes in private equity funds to second-hand buyers, severing ties with a slew of past managers and freeing up cash for new wagers.
Municipal Bonds: 2023 U.S. States Outlook
Revenue above expectations, pandemic federal aid and reserves have strengthened states' financial outlook. But states will need to prepare as pandemic aid winds down and the economy slows.
Be Grateful for Crypto’s Well-Timed Meltdown
With each passing day, the brave new world of cryptocurrencies is looking more like the perilous old world of Wall Street circa 1929 or 2008.
Bullish Back Half
We think we could see a bullish back half of the year for equity markets. Our analysis follows in our Quarterly Strategy Report.
The End of Indexing
It took me a long, long time to write The End of Indexing.
“HODL” Finds Its Inevitable Flaw
“HODL,” an original misspelling taken on as a badge of courage by cryptocurrency investors, spread to “Meme stocks” during the runup in 2020 and 2021.
Seven Least Expensive States Based on Retirement Healthcare Costs
Since healthcare costs are the number one fear in retirement for Americans, this article will focus on which states are the least expensive to retire in based on healthcare costs.
Common Scenarios for Transitioning a Private Foundation to a Donor Advised Fund
What are the most common scenarios that give rise to private foundations converting to DAFs (or making a thoughtful decision not to convert), while preserving the original donor’s intent and satisfying the administrative concerns of surviving family members?
How a New Zealand Superfund “Beat the Market”
It came as a surprise when I found the annual report of the New Zealand SuperFund. While no one could fault it for sticking with passive investments, it chose a different path, with stunning results.
An Update on the Social Security Problem with GPO Benefits
Social Security applies a substantially higher penalty on people subject to GPO for claiming widow(er) and spousal benefits prior to normal retirement age.
Stocks Sniffing A Bear Market Rally
A number of key technical, sentiment and flow based indicators are suggesting we could see a relief in selling pressure over the coming weeks, and perhaps a countertrend rally in risk assets.
Don’t Cry for the Most Wealthy
Over the last four years, we have argued that the glamour monopoly technology companies have a low multiplier effect in the U.S. economy
Inflation Ate Your Free Lunch, But You’re Still Better Off
Believe it or not, we live in the best of times. It’s been a crazy few decades, with a pandemic, rising inequality, slowing growth and productivity, and major changes in the economy.
How Venture Capital Thrives by Betting on Weirdness
Who would want to be tasked with investing their own and other people’s money in companies run by weirdos and jerks? But that turns out to be one of the most important skill sets shared by successful venture capitalists.
Signs Point to Rising Recession Risk
Rising inflation, rate hikes, supply-chain problems and the Russia-Ukraine war have contributed to growing recession fears.
Is Gold the Answer?
Gold and silver is money. Everything else is credit.
Why Some Retirees are Losing Social Security Benefits
The Social Security benefit formula is short-changing a select group of retirees, and the losses are apt to exceed $25,000 over a lifetime. There is no effort to fix the flaw, so the concern is on-going.
Treasuries Slide as Inflation Concerns Keep Rate-Hike Bets Alive
Treasuries extended their slump in New York, driving the yield on the benchmark 10-year note up by the most in more than three weeks, as renewed inflation concerns and economic data supported expectations for multiple Federal Reserve rate hikes in coming months.
Today’s Pensions Just Don’t Favor Millennials and Gen Z
Even in 2022, pensions still command an aura of reverence. A benefit where you work for one company for 30 years and then retire with a livable wage? And you don’t have to fret about picking investments? What’s not to like?
”Apple” Wealth Management
The following is a hypothetical and fictional account of how big tech can disrupt the wealth management industry. A back-to-client focus is discussed. reminiscent of how Apple’s Mac OS empowered users and supplanted predecessor operating systems.
Lessons from CalPERS LTC Insurance Crisis
Since the 1990s, the CalPERS sold LTC policies to its residents. The lawsuit over claims related to those policies illustrates the dangers clients face with government-sponsored insurance programs.
The 9.62% Opportunity in I Bonds
The best retirement-savings vehicle is one that few have heard about: I bonds. They offer a risk-free yield of 9.62%, yet the amount of I bonds issued is only a small fraction of the total volume of bond issuance by the U.S. Treasury. My guest today will explain that paradox.
This is also the 300th episode of the Gaining Perspective podcast, and no guest would be more appropriate than Zvi Bodie. He has eloquently and persuasively made the case for the financial services industry to provide products that respond to the needs of everyday investors.
Biggest Mistake: A Great Stock and a Great Investment Are Not the Same
“That’s a great stock; I think I’ll take a big position in my portfolio.” That’s how all too many investors make their investment decisions. Mistake, big mistake. Use our Premium membership service to send this to clients and prospects with your firm’s logo.
Lacy Hunt: The Stability of the US Economy is at Stake
The Fed is at a crucial junction, according to Lacy Hunt. It has to contain inflation. If not, the stability of the U.S. economy over the longer term is seriously in doubt.
Crafting a New Retiree’s Tax Strategy
Retirement is the most important goal clients discuss over the course of their professional relationship with advisors. One key piece is the way in which taxes are paid.
We are On the Brink of a Global Downturn
Since 1992, The Belkin Report has used Michael Belkin’s proprietary forecasting model to project the performance of market sectors, groups, and specific stocks. It provides three‐ and 12‐month forecasts for financial markets based on rates of change. Because of its track record, The Belkin Report has become a trusted resource for top hedge funds, mutual funds, pension funds, insurance companies, family offices, and sovereign wealth funds across the globe.
Fed ‘Not Out of Bullets’ Yet to Control Inflation: Milken Update
The Milken Institute Global Conference continues in Beverly Hills, California, bringing together investors, dealmakers, power brokers and celebrities to discuss markets and megatrends. Academics, sports stars, entrepreneurs and politicians among the thousands coming to the Beverly Hilton for the event, which runs through Wednesday.
Japanese Inflation – Liquidity Crisis in the Making (Part 2)
The BOJ is trapped. It is conducting unlimited QE to keep rates low and weaken the yen, which promotes inflation.
Europe Outlook: A French Economic Evolution
Franklin Mutual Series’ Katrina Dudley sees President Emmanuel Macron’s re-election as a positive for the French economy and regional equity markets over the longer term.
Using Analytics in Wealth Management: The Good and Bad (Part 2)
Forward-thinking advisors have been searching for and employing analytics very carefully. This series will explore some of these metrics, along with their benefits and pitfalls. Today’s topic is capital markets assumptions.
Liquidity Crisis in the Making – Japan's Role in Financial Instability
In propping up Japan's economy and financial markets, its central bank indirectly provided liquidity to the world's financial markets. But the BOJ could unleash a liquidity vacuum felt around the world.
CEO-Bonus Scrutiny Grows as Millions Paid Out Even in Down Years
Many companies stack the deck in ways that often help their executives get big annual bonuses no matter how the business performs, Bloomberg Tax research shows. They “adjust” and boost the earnings numbers they use, or lower their own performance goals—making it more likely they’ll hit the targets that trigger bonus awards.
Buck Up, Boomers. You're Still Better Off Than Your Parents.
This is a hard time to retire. The market is down 7% from last year and the rate of inflation has risen to 8.5%. Both are brutal to your bottom line when you're on a fixed income. But buck up! As bad as things seem, odds are you are in better shape than your parents or grandparents. And if they got through retirement comfortably, so will you.
Which Asset Classes Protect Against Inflation?
After a multi-decade pause, the winds of inflation have picked up. Only TIPS have been an effective hedge against inflation. Other asset classes have failed to varying degrees.
Colombia at Risk of Electing Its First Socialist President
On May 29, Colombia could elect its very first leftist president should Gustavo Petro receive a majority of the vote. The former congressman and mayor of the capital city of Bogotá, Petro is an unabashed admirer of and Hugo Chávez.
Budget Season
For US states, spring marks budget season, a time to check the ledger board and allocate funds to entities and projects within the state—or cut back where needed.
Millennials Save for Retirement Years Earlier Than Boomers — Because They Have To
Millennials took one look at their financial future and, early on, realized it was bleak. The YOLO generation started saving for retirement — stuffing away money in 401(k)-type accounts — nine years earlier than their baby boomer parents did, according to a new study.
Advisor Tax Mistake #5 – Your Tax Planning is Making Your Client’s Life Harder
If your tax planning makes your clients’ life more difficult, you’re doing something wrong.
Helping Clients Determine When They Can Retire
Can I afford to retire? Is it the right time? Here is how I answer those questions from my clients.
IRMAA – Who is She and How to Deal with Her
We’ll tackle IRMAA in this article. I’ll provide you with information to teach you how you might be able to get rid of IRMAA.
This Is What Living With Long-Term High Inflation Feels Like
If you are under 45 and live in America or Europe, the odds are this past year has been your first real experience with inflation. Other than a blip in 2008, inflation has barely topped 3% in the last 30 years.
Record Rout Hits $19 Billion Treasury ETF as Bond Slide Deepens
Long-maturity Treasuries are contending with their biggest drawdown on record, at least according to their most popular exchange-traded fund.
How to Plan Retirement Income for a Constrained Investor
In this article, I will explain how to structure an income strategy that best serves the needs of constrained investors. Demographic, economic, cultural, and social forces argue for a new approach to retirement planning.
Market review Q122
The market was tough in the first quarter. Find out what it means for long-term investors.
The Bull Case For Bonds
Central to my market and macro outlook at present is the likelihood we are amid a growth cycle downturn that is looking to decelerate meaningfully in the coming months.
How Much Should Advisors Charge Small Accounts?
For years, small accounts have been overcharged and underserved. I’m encouraged, however, by what I see some advisors doing, I wish the rest of the profession were inspired to similarly elevate the value provided for the price charged small clients.
Inflation’s New Normal Will Be 4%. Get Used to It.
Now that inflation is back, it's not going away anytime soon. The Federal Reserve expects it to fall below 3% next year and eventually go back to 2%. But there are reasons to think that’s far too optimistic. We are living in a new world. Even after things get back to normal that could mean inflation averages 4% or even 5% for the foreseeable future.
Institutional Investors Are Flexing Their ESG Muscles
People tend to associate environmental, social and governance investing with stock-picking, a way to sort through companies based on their ESG practices. But not every investor can be choosy about the companies they own. Big pension, endowment and sovereign wealth funds oversee tens of billions and even trillions of dollars, which means they have to own practically everything.
Helping Your Clients Define the Meaning of “Wealth”
In my work with clients, one of the most important services I provide, in addition to coaching on finance, estate planning, and investing, is facilitating cross-generational conversations about what it means to have wealth, and especially about what it means to use wealth wisely.
Antti Ilmanen: Investing Amid Low Expected Returns
Antti Ilmanen’s Investing Amid Low Expected Returns updates his 2011 Expected Returns, a volume considered by many the definitive work on the subject.
How to Break Out From the Great Stagnation
The last three years have been so relentlessly dismal — a global pandemic followed by the invasion of Ukraine — that it is tempting to idealize the old days. Just as the survivors of World War I looked back on the Edwardian era as one long country house weekend (“Stands the church clock at ten to three? And is there honey still for tea?”), so we observers of Ukraine’s agonies may think of the pre-Wuhan world as one of peace and prosperity. Yet in fact it was an era of sustained disappointment punctuated by the occasional crisis.
Best Practices For Fixed Income Restructures: Evaluating Four Portfolio Transition Strategies
It's no secret that in fixed income markets, excess performance above the benchmark is difficult to achieve over the long run.
Stabilizing Market Sees Banks Prep Sale of Billions in Junk Debt
Banks are gearing up to offload billions of dollars in junk debt backing leveraged buyouts, counting on the nascent stability in the market to finally get rid of underwrites for businesses such as Wm Morrison Supermarkets Plc and Unilever Plc’s tea unit.
Saving for Retirement Is Harder Than It Should Be
The U.S. government has long offered myriad contrivances and enticements to get Americans to save enough for a comfortable retirement — so far with woefully inadequate results. But why should it be involved at all? Why can’t people be responsible enough to prepare for an entirely foreseeable event?
Make Sun Belt Cities More Like New York and Los Angeles
Add this to the pandemic lesson book: People may be willing to give up their homes in high-cost, densely packed coastal cities, but they still want their coastal lifestyles — just with a little more space, cheaper real estate and warmer weather.
Should the Fed Fear the Yield Curve?
The yield curve's movements are unlikely to change the Fed's course.
Quit While You’re Ahead
The expected return from a roulette spin is negative: -5.26%.
The Invisible Free Lunch
Since market efficiency is the primary driver of the rise of passive investing and the demise of active management, the structure of wealth management investment offerings is at stake.
America’s Retirement Crisis Is a Financial Crisis Too
America is facing a retirement crisis. Most experts agree that a significant portion of the population will lack the resources to live comfortably after they stop working. This, in turn, will place an increasing burden on the country’s social safety net.
If the Yield Curve Inverts, Will Recession Follow?
Yesterday, I laid out why I am not concerned, in general, about what a yield curve inversion means for the economy, while still being very aware of the increasing risks.
Muni Pension Risk? It's in the Past for Now
Unfunded pensions for state and local governments were once expected by some to sink the whole market.
How to Attract Crypto Investors as Clients
Advisors need to understand how crypto markets work and how to make crypto part of a balanced portfolio to take advantage of this opportunity.
War Jolts ESG Funds That Waited Too Long to Unload Russia Assets
The same morning Russia invaded Ukraine, the people running the Church of England’s $5 billion pension fund decided they’d seen enough, and quickly went to work to clear their portfolio of Russian investments.
$20 Billion Club Report: Why You Should Care What The Big Plans Are Doing
Since 2011, we have issued annual reports on the largest listed corporate defined benefit (DB) sponsors in the U.S., codenamed the $20 billion club.
U.S. Pensions Face Demands to Exit Hard-to-Unwind Russia Assets
U.S. politicians from New York to California are calling for public pensions to shed hundreds of millions of dollars in investments tied to Russia. So far, the retirement funds aren’t moving quickly to divest. In many cases, they can’t.
Investment-Only Variable Annuity – A “Back-to-the-Future” Variable Annuity Vehicle
Interest-only variable annuity policies have zero commissions, no surrender charges and low annual M&E and admin fees plus various subaccounts that span traditional and alternative investment strategies.
The Three-Act Recovery, Plus Your Questions
This week’s news is seemingly all about Ukraine and Russia. It is a terrible situation. But as an economic matter, we still have serious economic challenges no matter how it develops.
Making Money And Reducing Risk In An Equity Superbubble
Navigating the career risk associated with bubbles (especially superbubbles) has always been tricky and is one of the biggest failings in the investment management industry.
ESG Debt Concerns Revealed by Watchdog Urging Rapid Fix
The unfettered boom in ESG debt has created some accounting concerns that are in urgent need of regulatory attention, according to Europe’s markets watchdog.
Pension Funds Would Benefit From Overseas Adventures
The world’s pension funds are growing as an ageing population puts more money aside to pay for retirement. The global total has doubled in the past decade to almost $57 trillion. But the biggest pool of savings risks missing out on both diversification and returns by restricting its investments to its domestic markets.
Blueberries, Blowups And Babies
No, we did not run out of titles.
Big-Time Funds Should Be Able to Stand Some Light
Online brokers like Robinhood Markets Inc. and crypto assets might get the headlines, but the Securities and Exchange Commission’s parallel effort to drag private-equity firms and hedge funds out of the shadows will have far more impact on far more lives.
Will Higher Inflation Harm Retirees?
Those nearing or in retirement are worried about what higher-than-expected inflation will mean. Here are a few things to consider to temper their anxiety.
How to Know if You Picked a Good Niche
You have a niche market selected, but now comes the tricky part: determining whether the niche is a viable client base. Here are 11 questions to help you assess whether you picked a good niche.
Hedge Funds and the Art of ‘Phony Happiness’
Hedge funds have long been criticized for underperforming the bull market in stocks for the past decade. But as markets get more challenging and interest rates climb, it’s their risk-management skills – not their performance record – that could underpin an upturn in the industry’s fortunes.
After Crypto’s Cold Winter, Expect Springtime for Web 3.0
First the economy overheats, then winter comes to Wall Street. January was especially horrible for the cutting-edge investor, and February might be even worse. At the end of last month, big tech stocks were down nearly 8%, according to the New York Stock Exchange’s FANG+ index — and that was before shares of Meta Platforms Inc. (the company formerly known as Facebook) fell off a cliff last week.
The Price You Pay for Climate Policies: Understanding IMO 2020
IMO 2020 has contributed to higher shipping rates.