This glide path’s too cold…
The first blog in this fairy-tale analogy blog series and the asset allocation approach discussed might suggest that as a portfolio manager I should be concerned about the risk of loss to the portfolios. And I am, but not to the point of ignoring other risks. As I structure target date series I seek to mitigate other risks as well. If I avoid equities altogether in a target date series it can produce the opposite problem – not enough growth potential in the portfolio. Read more
There is still a lot of confusion out there about how the non-ERISA safe harbor works. Many people over simplify the rules and assume if there is no employer contribution that you will be a non-ERISA 403(b) plan. That couldn’t be further from the truth. If there is any active involvement of the employer, it likely crosses the ERISA line. Read more
As Valentine’s Day is celebrated in the US this week, millions of people will crowd the aisles of shopping malls and grocery stores looking for the perfect gifts to celebrate their love and affection for one another. According to the Annual Valentine’s Day Spending Survey from the National Retail Federation, 91% of Americans who are currently in a relationship will celebrate to the tune of $18.6B this holiday season.1 Isn’t love grand?!
Equity investors can put their money to work across nine style boxes (think of the large-mid-small/growth-core-value matrix). That’s some diversification potential. Why is it then that some investors only have one flavor of fixed income in their portfolios?
Why would investors demand nine styles of equity, but seldom have more than one fixed income allocation – usually a core or core-plus strategy benchmarked to something like the Barclays Aggregate Index? Read more
Think about the conversations you have with your current and prospective clients. They may nod, smile, and comment at the right times, but do they really understand everything you’re saying? We’re not talking about smarts. Your clients are bright and successful folks.
It’s up to the financial professional to set the stage early by gauging clients’ knowledge of investments and terminology. It can go a long way to help financial professionals communicate more effectively.
You’ve probably seen the stats. 46% of Americans have less than $10,000 saved for retirement1. People are living longer in retirement than all previous generations. 10,000 people turn 65 a day. Hordes of retirees every day are pouring into retirement and transitioning from a life of paychecks to a life of creating their own checks without a plan. Like the slow moving zombies in The Walking Dead, many retirees essentially ‘drift’ into retirement. And while scary, it doesn’t necessarily mean that retirees are doomed. It means there needs to be better planning. Read more