Planting the Seeds for High Cash Flow, With 5 Years Until “Go-Go”
I was speaking with an industry friend and colleague the other day, and we got to riffing about music and retirement planning. A free and creative thinker, she said that when talking to clients about future retirement income, the sweet spot timing wise seems to be about five years before clients retire.
Best Practices for Retirement Income Planning + How a New Tool can Help
As the baby boomers reach retirement, advisors must solve new problems for them. And these new problems must be addressed with solutions that evolve to better manage them. Retirement income is different as clients shift their focus from maximizing wealth to creating sustainable income, clients face a greater range of risks, and clients increasingly must solve a complex lifetime financial problem. These matters are becoming particularly vital as near retirees are now experiencing continued market volatility and uncertainty, and historically low interest rates.
This presentation looks at sustainable retirement spending from investments in light of recent market events and discusses strategies to support more spending by integrating both investments and income protections, such as a new Portfolio Retirement Income Guarantee that unbundles the insurance from underlying investments to build more efficient retirement strategies.
Consumer Price Index: September Core Mostly Unchanged at 4%
The Bureau of Labor Statistics released the September Consumer Price Index data this morning. The year-over-year non-seasonally adjusted Headline CPI came in at 5.39%, up from 5.25% the previous month. Year-over-year Core CPI (ex Food and Energy) came in at 4.03%, mostly unchanged from 4.00% the previous month and is above the Fed's 2% PCE target.
Waiting for Rates to Rise? What You May Miss by Staying in Cash
There is a cost to waiting for interest rates to rise—you may be missing out on higher coupon rates and yields elsewhere. Rather than waiting on the sidelines for yields to rise, investors should consider short-term corporate bonds today—specifically those with fixed coupon rates.
The Big Four Economic Indicators: September Employment
This commentary has been updated to include this morning's release of Nonfarm Employment. September's 194K increase in total nonfarm payrolls had revisions that resulted in 169K more jobs than previously reported. The Investing.com consensus was for 500K jobs gained and the unemployment rate to fall to 5.1%.