Why Annuity Demand Fell During the COVID Crash
Market crashes, such as we experienced in March at the onset of the pandemic, drive assets to the safe haven of government bonds. But our research shows this flight to safety mindset did not translate to an increase in demand for annuities.
The Seven Cases to do a Roth Conversion
Should your clients convert some of their traditional tax-deferred money (e.g. IRA or 401K) to an after-tax Roth account? There are some myths that are just plain wrong. Here are the seven situations to consider when advising on this issue.
U.S. Workforce: August 2020 Update
We've updated our monthly workforce analysis to include last Friday's Employment Report for August. The unemployment fell to 8.4%, and the number of new nonfarm jobs (a relatively volatile number subject to extensive revisions) came in at 1.84M.
The Latest Look at the Total Return Roller Coaster
Here's an interesting set of charts that will especially resonate with those of us who follow economic and market cycles. Imagine that five years ago you invested $10,000 in the S&P 500. How much would it be worth today, with dividends reinvested but adjusted for inflation? The purchasing power of your investment has increased to $17,220 for an annualized real return of 10.92%.
Why Own Bonds When Yields Are So Low?
Bond investors face a challenging environment. The federal funds rate is back near zero, the 10-year Treasury yield remains stuck in a 0.5%-to-0.75% range, and inflation-adjusted (real) yields are deep in negative territory.
Financial Planning for Millennial Women: A Checklist for Financial Advisors
Although many millennial women’s needs will overlap with their more established counterparts, younger female clients face unique challenges and opportunities. Our complimentary checklist shows how you can guide these clients to become more knowledgeable, empowered, and confident about their financial outlook. Learn more about why millennial women are an emerging clientele, ways advisors can serve them better, and the right questions to ask to encourage independence.
The Unimportance of Asset Allocation in Retirement Planning
Earlier this year, Jeremy Siegel said that, “75/25 is the new 60/40,” a recommendation to raise stock allocations to make up for lower bond yields. However, what matters for investors saving for retirement is not the asset class performance, but how those returns translate into retirement consumption.