The US Centers For Disease Control and Prevention reported last week that the US birth rate plunged for its sixth consecutive year in 2020. The US fertility rate also hit a new record low. Demographers are puzzled at this potentially troubling trend...
Let's do some analysis of the Consumer Price Index, the best-known measure of inflation. The Bureau of Labor Statistics (BLS) divides all expenditures into eight categories and assigns a relative size to each. The pie chart illustrates the components of the Consumer Price Index for Urban Consumers, the CPI-U.
We've updated this series to include the April release of the Consumer Price Index as the deflator and the monthly employment update. The latest hypothetical real (inflation-adjusted) annual earnings are at $43,774, down 5.7% from 45-plus years ago.
My guest today, Ryan Sullivan, has written that, in crisis moments, the “pros” are “active.” If a client hasn’t called you, don’t assume they are not concerned. If they get the sense you’re avoiding contacting them, they may reach out to another financial professional for help. But in-person meetings have been ill-advised and phone calls don’t provide the level of connection clients need. Virtual meeting technology is a great option for staying in touch with clients, and Ryan is here to share his research on this topic.
Note: This commentary has been updated with the latest numbers from last Friday's Employment Report. Consider: Today nearly one in three of the 65-69 cohort and one in five of the 70-74 cohort are in the labor force.
We've updated our monthly workforce analysis to include last Friday's Employment Report for April. The unemployment rate inched up to 6.1%, and the number of new nonfarm jobs (a relatively volatile number subject to extensive revisions) came in at 266K.
The Labor Force Participation Rate (LFPR) is a simple computation: You take the Civilian Labor Force (people age 16 and over employed or seeking employment) and divide it by the Civilian Noninstitutional Population (those 16 and over not in the military and or committed to an institution).
Being named an executor means taking on a part-time job. Often, executors have day jobs so the duties of being an executor happen during lunch hours, after work, and on weekends.
This is where the evolution happens, and a firm innovates to thrive in the future.
Whether your planning approach involves three, five or seven pillars, it is likely you are missing the top financial concern for Americans: health care.
Let's take a closer look at Friday's employment report numbers on Full and Part-Time Employment.
Much has been written about the need to justify your value. Once you buy into this premise, there’s no end to the advice about how to do so. But it’s a terrible idea.
What does the ratio of unemployment claims tell us about where we are in the business cycle and recession risk?
Retirement planning has evolved from a singular focus on savings to ensuring that account values provide income for life. Multiple generations of DC plan participants are concerned that they’ll outlive their retirement savings, and they’re turning to plan sponsors for solutions.
It is a particularly good time to invest in the commodities markets.
I am going to more dig into buffer-and-floor strategies, with a particular focus on the underlying options-pricing dynamics.
A host of impediments stand in the way of allocating funds to annuities. Some issues relate to brokers or advisors, and others involve their clients. Some are valid, but others are questionable and reflect irrational behavioral biases.
I've developed this kind of duality. It's hard to think of the next 20 years or indeed the last 20 years without being very optimistic about the future of humanity.
This commentary has been updated to include this morning's release of Nonfarm Employment. April's 266K increase in total nonfarm payrolls had revisions that resulted in 78K fewer jobs than previously reported. ("Monthly revisions result from additional reports received from businesses and government agencies since the last published estimates and from the recalculation of seasonal factors.") The Investing.com consensus was for 978K jobs gained and the unemployment rate to fall to 5.8%.
As the U.S. job market comes roaring back, there’s a growing debate about whether there are enough workers to power faster economic growth.
This morning's employment report for April showed a 266K increase in total nonfarm payrolls, which was well below the Investing.com forecast of 978K jobs added.
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 $20,554 for an annualized real return of 14.5%.
This morning's seasonally adjusted 498K new claims, down 92K from the previous week's upwardly revised figure, was better than the Investing.com forecast of 540K.
Should investors know that brokers are not advisors to customers?
Every year, the identities of almost 2.5 million Americans who are deceased are stolen by thieves to open fraudulent credit cards, access financial assets, file fake tax returns, obtain driver’s licenses, steal medical identities and more.
Why don’t more business owners upgrade their current 401(k) plans to take full advantage of larger tax deductions and accelerated retirement savings?
Investment success requires that a person have a high tolerance for boredom, which means turning a deaf ear to the financial press’s investment panic-de-jour. It's good for your financial health to avoid following the advice of prognosticating financial soothsayers. Even when one of them is me.
Climate research informs us that in 2017 anthropogenic global warming reached1.0° C above pre-industrial levels (IPCC, 2018).
We look at the myriad of liquidity measures and what the draining from gains does to asset prices and fiscal and monetary responses.
On April 20, we hosted our first ever virtual Market Outlook Summit. Here is a recap of each session with a link to watch the replay.
I will explore three approaches to options-based strategies: DIY, an ETF or a RILA.
Supply chain disruptions may be a near-term challenge, but base effects will slow inflation next year.
David Bahnsen does a podcast for National Review called Capital Record. We did a two-part series. The following is an edited partial transcript of the first part.
One of the most common reasons new clients seek me out is the loss of their long-standing financial advisor. As an advisor, the best way to protect against losing those clients is to create a team or “ensemble” approach to providing financial advice.
With the release of this morning's report on March's Personal Incomes and Outlays, we can now take a closer look at "Real" Disposable Personal Income Per Capita. At two decimal places, the nominal 23.57% month-over-month change in disposable income is cut to 22.94% when we adjust for inflation and an all-time high. This is an increase from last month's -7.91% nominal and -8.13% real increases last month. The year-over-year metrics are 31.77% nominal and 28.78% real.
Personal Income (excluding Transfer Receipts) in March rose 1.44% and is up 3.6% year-over-year. However, when adjusted for inflation using the BEA's PCE Price Index, Real Personal Income (excluding Transfer Receipts) MoM was up 0.92%. The real number is up 1.3% year-over-year.
Let’s talk through how you can leverage the power of LinkedIn to attract more qualified leads by focusing on the six most common mistakes I see advisors making.
Be smart and follow best practices for mergers and acquisitions.
The advisory profession is set up to encourage selfishness and greed. For that to change, compensation must change. These thoughts are radical, so take a seat before you read.
When there is a discussion of low future returns due to valuations, what gets missed is that such requires a bear market.
Review the latest Weekly Headings by CIO Larry Adam.
Human capital needs renewal; COVID-19 sweeps through India again, while the U.S. economy springs back to life.
For those who elect to take passive strategies, like TDFs, assess your risk profile and that of the markets and invest accordingly.
This article demonstrates why the conventional wisdom of “stocks in taxable, bonds in tax advantaged” is not reliable.
You will demonstrate an extra level of value when you help a client with cash flow.
Other than a few media spiced stories about normal joe investor making millions on a trade, the majority of retail investors’ returns are just average, but there are ways they can improve their portfolio returns.
Given the increase in interest of registered index-linked annuities (RILAs) and consistent growth in sales, advisors should understand the basics of the product and how it works.
The harmful power of mistaken money beliefs.
Advisors, particularly those with a fiduciary mindset, want nothing to do with sales. That is understandable, as sales in the world of retail financial advice has caused a lot of harm. We need to look no further than the almost daily accounts of Ponzi schemes and fraudulent tactics that have deprived too many Americans of their life savings. But growth requires business development, marketing, promotion and … yes … sales. Here to talk about sales, why it has been labeled a dirty word, and how to redefine sales and make it work in a fiduciary context is Shauna Mace of Inspire Growth.
According to leading economists and academics, annuities can generate retirement income more efficiently than bonds for today’s retirees. In addition, they can ease the impact of a market downturn on a portfolio and create the opportunity for heavier allocations to equities for discretionary spending or legacy designations. Join this session – the first in a 5-part series – to understand how and why advisors are using commission-free annuities to strengthen their clients’ retirement plans and grow their firms.
This session is the first of a new five-part annuity education series, featuring leading academics Wade Pfau, Ph.D., CFA, RICP® Professor and RICP®️, Michael Finke, Ph.D., Frank M. Engle Distinguished Chair in Economic Security, David Blanchett, PhD, CFA, CFP®, ChFC®, CLU®, and DPL Founder and CEO, David Lau.
Although it’s early in the first quarter earnings reporting season, it’s worth a look at the progress so far and the implications for the rest of the season, as well as valuations.
A key risk, perhaps the most critical risk, retirees face is outliving their money. The only product that provides guaranteed protection against that mortality risk is an annuity. But annuities are complex and offer a variety of features, including tax protection, index participation, caps and floors. Here to help us understand the intricacies of annuities and to talk about the latest product developments is Chris Previti.
How should clients use tax-advantaged accounts? By quantifying the tax benefits of those accounts, we can refine recommendations on asset location and the traditional-versus-Roth decision.
How many bad/failed companies are being carried by the forbearance of their private and public creditors and emergency injections of cash from government?
In 40 years, I’ve never seen as many signs of change in the planning/advisory profession as I see right now.
Right now, the stock market is in the land-where-there-should-be-sea phase. What we don’t know is when the wave is coming. Maybe there’s time to venture out and see what treasure was hidden beneath the waves... or maybe not. Prudence would suggest that we go searching for treasure on higher ground.
Imagine never having to do your least favorite chore!
Month-over-month nominal sales in March increased by 9.8%. Real Retail Sales, calculated with the seasonally adjusted Consumer Price Index, increased by 9.2%.
Along with learning the importance of saying "yes ma'am” and “no sir," my southern upbringing taught me the value of a handwritten note.
Lost in the debate over whether today's ultra-loose fiscal and monetary policies will trigger painful inflation is the broader risk posed by potential negative supply shocks.
The 2015 Paris Agreement introduced the legally binding goal of maintaining the average global temperature below the pre-industrial revolution average plus 2o Celsius in order to avoid severe stress on natural and socioeconomic systems.
By conducting your meetings online instead of on the phone, you’re making yourself more accessible for clients. That’s in their best interest.
You can gauge the experience of a marketer based on what they default to when it’s time to drum up a new marketing message or campaign.
How much is a tax deduction worth? Maybe less than your money scripts would have you believe. Here are some common ways that over-emphasizing deductions may reduce your clients’ tax bills but cost them more money than they save.
The S&P 500 is up nearly 80% since March 23, 2020 (COVID bottom). The economic recovery is in full swing, and between stimulus checks, warm weather, and widespread vaccinations recovery momentum is likely to surge this summer, although downside volatility is intensifying.
One of the most contentious topics among RIAs is whether to recommend annuities. While many will recommend a single-premium immediate annuity (a SPIA) or a deferred-income annuity (a DIA), those products represent only a small fraction of annuity sales. We are here to talk about whether RIAs should use the other 95% of annuity products for their clients in their retirement plans – specifically variable annuities, equity-indexed annuities and other related products.
Our discussion will take the form of an informal debate on the following proposition, “Resolved: Annuities should play a prominent role in most retirement plans.”
To compensate, retain and attract employees, many companies issue stock options.
Our nation’s major divisions are wealth and health inequality. Protracting both divisions are voters who want more benefits or lower taxes. I offer actuarially based solutions to both inequalities.
I used the “Big Picture” client education software to examine the impact of rebalancing frequency on historical SWRs and other retirement outcomes. The results argue against the notion to rebalance often.
Recently, the March jobs report showed a whopping 916,000 new jobs.
Joel Bruckenstein of T3 and I just released the 2021 T3/Inside Information Advisor Software Survey, which includes user ratings and market share statistics (and year-on-year changes to both) for more than 400 different software products and services in 32 different categories.
Planning for retirement has historically been focused on saving as much as possible.
Low-income Americans bore the brunt of job losses when the pandemic arrived. Now they’re getting hit hardest by price increases as the economy recovers.
The Asset-Map process and its toolset is a force for robust conversations that provides the basis for your advice.
Despite a strong March 2021 jobs report, full employment remains far away.
As Shakespeare might put it, “full of sound and fury, signifying nothing” is perhaps an apt way to describe the character of the market so far this year.
In retail investing, do the “blind lead the blind?” Such was a question I asked recently about young investors who are “Long Confidence And Short Experience.”
I’ve spent more time explaining bonds to clients than stocks, mostly overcoming eight great misconceptions about fixed income.
As we know, change is on the horizon, in one way or another. The current exclusion limits are scheduled to expire in 2025, according to the terms of the TCJA, unless renewed by Congress.
You know society is in trouble when the Prime Minister of your country stands up and says something along the lines of “of course we can afford to take on more debt – you are old-fashioned if you think otherwise”.
Within days of each other in March two Northeast Ohio legends passed away: Michael Stanley and Joe Tait.
In part 1 of this two-part series on dividend stocks I covered 2 utility stocks, 4 REITs, 1 information technology company, and 2 financials.
My generation, millennials (those born from 1980 to 2000), have been noted for much of the last 10 years to be a risk averse group.
President Biden’s stimulus bill “will cut the number of children in poverty by 40%,” according to the Center on Budget and Policy Priorities.
I want to share a math formula I often discuss with advisors. This is for anyone considering transitioning their practice to the RIA model or is already working through those steps but is struggling to reach the finish line.
ESG is at the forefront of contention at the SEC. Differences between Republican and Democratic commissioners are sharp and clear.
Last week I posted the video “10 Dividend Growth Stocks To Beat The Market” In that video I was primarily focused on investing in faster growing attractively valued dividend growth stocks for high total return and potential market beating returns.
The federal budget deficit hit an all-time record high of $3.1 trillion last year.
Democrats could begin working on a tax bill later this year, but resulting tax hikes may be weaker and less of a headwind to growth than some fear.
Our economy is recovering; the stock market is booming. Yet I'm hearing investors express much more fear now than they did last March when the stock market was falling off a cliff. I see a couple of reasons for this.
Retirement
US Birth & Fertility Rates Hit New Record Lows: Why?
The US Centers For Disease Control and Prevention reported last week that the US birth rate plunged for its sixth consecutive year in 2020. The US fertility rate also hit a new record low. Demographers are puzzled at this potentially troubling trend...
Components of the CPI: April 2021
Let's do some analysis of the Consumer Price Index, the best-known measure of inflation. The Bureau of Labor Statistics (BLS) divides all expenditures into eight categories and assigns a relative size to each. The pie chart illustrates the components of the Consumer Price Index for Urban Consumers, the CPI-U.
Middle-Class Wages in April 2021
We've updated this series to include the April release of the Consumer Price Index as the deflator and the monthly employment update. The latest hypothetical real (inflation-adjusted) annual earnings are at $43,774, down 5.7% from 45-plus years ago.
How to Improve the Virtual Client Meeting Experience
My guest today, Ryan Sullivan, has written that, in crisis moments, the “pros” are “active.” If a client hasn’t called you, don’t assume they are not concerned. If they get the sense you’re avoiding contacting them, they may reach out to another financial professional for help. But in-person meetings have been ill-advised and phone calls don’t provide the level of connection clients need. Virtual meeting technology is a great option for staying in touch with clients, and Ryan is here to share his research on this topic.
Demographic Trends for the 50-and-Older Work Force
Note: This commentary has been updated with the latest numbers from last Friday's Employment Report. Consider: Today nearly one in three of the 65-69 cohort and one in five of the 70-74 cohort are in the labor force.
U.S. Workforce: April 2021 Update
We've updated our monthly workforce analysis to include last Friday's Employment Report for April. The unemployment rate inched up to 6.1%, and the number of new nonfarm jobs (a relatively volatile number subject to extensive revisions) came in at 266K.
Long-Term Trends in Employment by Age Group
The Labor Force Participation Rate (LFPR) is a simple computation: You take the Civilian Labor Force (people age 16 and over employed or seeking employment) and divide it by the Civilian Noninstitutional Population (those 16 and over not in the military and or committed to an institution).
The Dubious Honor of Serving as Executor
Being named an executor means taking on a part-time job. Often, executors have day jobs so the duties of being an executor happen during lunch hours, after work, and on weekends.
How Firms Can Evolve for the Future Before It Arrives
This is where the evolution happens, and a firm innovates to thrive in the future.
Positioning Health Care as Part of Your Service Offering
Whether your planning approach involves three, five or seven pillars, it is likely you are missing the top financial concern for Americans: health care.
Full-time and Part-time Employment: A Deeper Look
Let's take a closer look at Friday's employment report numbers on Full and Part-Time Employment.
Tips About Justifying Your Value and Digital Marketing
Much has been written about the need to justify your value. Once you buy into this premise, there’s no end to the advice about how to do so. But it’s a terrible idea.
The Civilian Labor Force, Unemployment Claims and the Business Cycle
What does the ratio of unemployment claims tell us about where we are in the business cycle and recession risk?
The Current State of Retirement Income
Retirement planning has evolved from a singular focus on savings to ensuring that account values provide income for life. Multiple generations of DC plan participants are concerned that they’ll outlive their retirement savings, and they’re turning to plan sponsors for solutions.
The Recovery will be Positive for Commodities
It is a particularly good time to invest in the commodities markets.
It’s Good to Have Options, Part 3: Buffers versus Floors
I am going to more dig into buffer-and-floor strategies, with a particular focus on the underlying options-pricing dynamics.
The Valid and Not-So-Valid Reasons for Rejecting Annuities
A host of impediments stand in the way of allocating funds to annuities. Some issues relate to brokers or advisors, and others involve their clients. Some are valid, but others are questionable and reflect irrational behavioral biases.
This Kind of Duality
I've developed this kind of duality. It's hard to think of the next 20 years or indeed the last 20 years without being very optimistic about the future of humanity.
The Big Four Economic Indicators: April Employment
This commentary has been updated to include this morning's release of Nonfarm Employment. April's 266K increase in total nonfarm payrolls had revisions that resulted in 78K fewer jobs than previously reported. ("Monthly revisions result from additional reports received from businesses and government agencies since the last published estimates and from the recalculation of seasonal factors.") The Investing.com consensus was for 978K jobs gained and the unemployment rate to fall to 5.8%.
‘Job Paradox’ Baffles Economists as U.S. Employers See Shortage
As the U.S. job market comes roaring back, there’s a growing debate about whether there are enough workers to power faster economic growth.
April Jobs Report: 266K New Jobs, Unemployment Rate at 6.1%
This morning's employment report for April showed a 266K increase in total nonfarm payrolls, which was well below the Investing.com forecast of 978K jobs added.
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 $20,554 for an annualized real return of 14.5%.
Weekly Unemployment Claims: Down 92K from Last Week
This morning's seasonally adjusted 498K new claims, down 92K from the previous week's upwardly revised figure, was better than the Investing.com forecast of 540K.
What if …. We Tell Investors the Truth?
Should investors know that brokers are not advisors to customers?
Help Clients Prevent Deceased Identity Theft
Every year, the identities of almost 2.5 million Americans who are deceased are stolen by thieves to open fraudulent credit cards, access financial assets, file fake tax returns, obtain driver’s licenses, steal medical identities and more.
Helping Business Owners with Cash-Balance Retirement Plans
Why don’t more business owners upgrade their current 401(k) plans to take full advantage of larger tax deductions and accelerated retirement savings?
Housing Market Shows Risk of Expert Predictions
Investment success requires that a person have a high tolerance for boredom, which means turning a deaf ear to the financial press’s investment panic-de-jour. It's good for your financial health to avoid following the advice of prognosticating financial soothsayers. Even when one of them is me.
The Time Is Now: Climate Transition Investing for US Investors
Climate research informs us that in 2017 anthropogenic global warming reached1.0° C above pre-industrial levels (IPCC, 2018).
Liquidity: Historic Gains Lead To Marginal Drains
We look at the myriad of liquidity measures and what the draining from gains does to asset prices and fiscal and monetary responses.
A Recap of Our Virtual Market Outlook Summit
On April 20, we hosted our first ever virtual Market Outlook Summit. Here is a recap of each session with a link to watch the replay.
It’s Good to Have Options Part 2: DIY vs ETF vs RILA
I will explore three approaches to options-based strategies: DIY, an ETF or a RILA.
The Coming Disinflation
Supply chain disruptions may be a near-term challenge, but base effects will slow inflation next year.
Anomaly of a Recovery
David Bahnsen does a podcast for National Review called Capital Record. We did a two-part series. The following is an edited partial transcript of the first part.
Educate Clients About the Need for a Team Approach to Advice
One of the most common reasons new clients seek me out is the loss of their long-standing financial advisor. As an advisor, the best way to protect against losing those clients is to create a team or “ensemble” approach to providing financial advice.
Real Disposable Income Per Capita in March, All-Time High
With the release of this morning's report on March's Personal Incomes and Outlays, we can now take a closer look at "Real" Disposable Personal Income Per Capita. At two decimal places, the nominal 23.57% month-over-month change in disposable income is cut to 22.94% when we adjust for inflation and an all-time high. This is an increase from last month's -7.91% nominal and -8.13% real increases last month. The year-over-year metrics are 31.77% nominal and 28.78% real.
The Big Four: Real Personal Income in March
Personal Income (excluding Transfer Receipts) in March rose 1.44% and is up 3.6% year-over-year. However, when adjusted for inflation using the BEA's PCE Price Index, Real Personal Income (excluding Transfer Receipts) MoM was up 0.92%. The real number is up 1.3% year-over-year.
The Worst Mistakes Advisors Make on LinkedIn
Let’s talk through how you can leverage the power of LinkedIn to attract more qualified leads by focusing on the six most common mistakes I see advisors making.
M&A Best Practices for Small Firms
Be smart and follow best practices for mergers and acquisitions.
Radical Views on Advisor Compensation
The advisory profession is set up to encourage selfishness and greed. For that to change, compensation must change. These thoughts are radical, so take a seat before you read.
Low Future Returns Requires A “Real” Bear Market
When there is a discussion of low future returns due to valuations, what gets missed is that such requires a bear market.
Weekly Investment Strategy
Review the latest Weekly Headings by CIO Larry Adam.
Economic Commentary: Worker Retraining, India's Second Wave, Evidence of Recovery
Human capital needs renewal; COVID-19 sweeps through India again, while the U.S. economy springs back to life.
Are You Playing Roulette with Target Date Funds?
For those who elect to take passive strategies, like TDFs, assess your risk profile and that of the markets and invest accordingly.
Quantifying the Tax Benefit of Retirement Accounts for Better Client Decisions (Part 2)
This article demonstrates why the conventional wisdom of “stocks in taxable, bonds in tax advantaged” is not reliable.
How Cash Flow Planning Differentiates Financial Advisors
You will demonstrate an extra level of value when you help a client with cash flow.
DIY Investors Underperform the Market: Here are 6 Reasons Why
Other than a few media spiced stories about normal joe investor making millions on a trade, the majority of retail investors’ returns are just average, but there are ways they can improve their portfolio returns.
It’s Good to Have Options, Part 1: Meet Registered Index-Linked Annuities (RILAs)
Given the increase in interest of registered index-linked annuities (RILAs) and consistent growth in sales, advisors should understand the basics of the product and how it works.
The Harmful Power of Mistaken Money Beliefs
The harmful power of mistaken money beliefs.
Is “Sales” a Dirty Word for Fiduciaries?
Advisors, particularly those with a fiduciary mindset, want nothing to do with sales. That is understandable, as sales in the world of retail financial advice has caused a lot of harm. We need to look no further than the almost daily accounts of Ponzi schemes and fraudulent tactics that have deprived too many Americans of their life savings. But growth requires business development, marketing, promotion and … yes … sales. Here to talk about sales, why it has been labeled a dirty word, and how to redefine sales and make it work in a fiduciary context is Shauna Mace of Inspire Growth.
Annuities for Today’s Retirement Realities
According to leading economists and academics, annuities can generate retirement income more efficiently than bonds for today’s retirees. In addition, they can ease the impact of a market downturn on a portfolio and create the opportunity for heavier allocations to equities for discretionary spending or legacy designations. Join this session – the first in a 5-part series – to understand how and why advisors are using commission-freeannuities to strengthen their clients’ retirement plans and grow their firms.
This session is the first of a new five-part annuity education series, featuring leading academics Wade Pfau, Ph.D., CFA, RICP® Professor and RICP®️, Michael Finke, Ph.D., Frank M. Engle Distinguished Chair in Economic Security, David Blanchett, PhD, CFA, CFP®, ChFC®, CLU®, and DPL Founder and CEO, David Lau.
Pump it Up: Earnings Season Starts Off Strong
Although it’s early in the first quarter earnings reporting season, it’s worth a look at the progress so far and the implications for the rest of the season, as well as valuations.
Minisode - The Latest Developments in Annuities
A key risk, perhaps the most critical risk, retirees face is outliving their money. The only product that provides guaranteed protection against that mortality risk is an annuity. But annuities are complex and offer a variety of features, including tax protection, index participation, caps and floors. Here to help us understand the intricacies of annuities and to talk about the latest product developments is Chris Previti.
Quantifying the Tax Benefit of Retirement Accounts for Better Client Decisions (Part 1)
How should clients use tax-advantaged accounts? By quantifying the tax benefits of those accounts, we can refine recommendations on asset location and the traditional-versus-Roth decision.
You Want to Buy More Junk Equities?
How many bad/failed companies are being carried by the forbearance of their private and public creditors and emergency injections of cash from government?
The Transformational Decade Ahead for the Planning Profession
In 40 years, I’ve never seen as many signs of change in the planning/advisory profession as I see right now.
Tsunami Warning
Right now, the stock market is in the land-where-there-should-be-sea phase. What we don’t know is when the wave is coming. Maybe there’s time to venture out and see what treasure was hidden beneath the waves... or maybe not. Prudence would suggest that we go searching for treasure on higher ground.
The Six Things I Wish Someone Told Me About Marketing Automation
Imagine never having to do your least favorite chore!
The Big Four: March Real Retail Sales Jumps 9.2%, All-Time High
Month-over-month nominal sales in March increased by 9.8%. Real Retail Sales, calculated with the seasonally adjusted Consumer Price Index, increased by 9.2%.
The Lost Art of the Handwritten Note
Along with learning the importance of saying "yes ma'am” and “no sir," my southern upbringing taught me the value of a handwritten note.
Is Stagflation Coming?
Lost in the debate over whether today's ultra-loose fiscal and monetary policies will trigger painful inflation is the broader risk posed by potential negative supply shocks.
Seven Policy Proposals to Meet the Paris Agreement Objectives
The 2015 Paris Agreement introduced the legally binding goal of maintaining the average global temperature below the pre-industrial revolution average plus 2o Celsius in order to avoid severe stress on natural and socioeconomic systems.
The Fiduciary Advantage of Zoom Meetings
By conducting your meetings online instead of on the phone, you’re making yourself more accessible for clients. That’s in their best interest.
The Elements of Great Advisor Marketing
You can gauge the experience of a marketer based on what they default to when it’s time to drum up a new marketing message or campaign.
When Tax Deductions Cost Clients Money
How much is a tax deduction worth? Maybe less than your money scripts would have you believe. Here are some common ways that over-emphasizing deductions may reduce your clients’ tax bills but cost them more money than they save.
1Q21 Recap: What a difference one year makes
The S&P 500 is up nearly 80% since March 23, 2020 (COVID bottom). The economic recovery is in full swing, and between stimulus checks, warm weather, and widespread vaccinations recovery momentum is likely to surge this summer, although downside volatility is intensifying.
A Debate on Whether RIAs Should Use Annuities in Retirement Plans
One of the most contentious topics among RIAs is whether to recommend annuities. While many will recommend a single-premium immediate annuity (a SPIA) or a deferred-income annuity (a DIA), those products represent only a small fraction of annuity sales. We are here to talk about whether RIAs should use the other 95% of annuity products for their clients in their retirement plans – specifically variable annuities, equity-indexed annuities and other related products.
Our discussion will take the form of an informal debate on the following proposition, “Resolved: Annuities should play a prominent role in most retirement plans.”
A Primer on Employee Stock Option Plans
To compensate, retain and attract employees, many companies issue stock options.
A Proposal to Address Wealth and Health Inequality
Our nation’s major divisions are wealth and health inequality. Protracting both divisions are voters who want more benefits or lower taxes. I offer actuarially based solutions to both inequalities.
Rebalancing Frequency and Safe Withdrawal Rates
I used the “Big Picture” client education software to examine the impact of rebalancing frequency on historical SWRs and other retirement outcomes. The results argue against the notion to rebalance often.
March Jobs Report – Millions Missing From The Roles
Recently, the March jobs report showed a whopping 916,000 new jobs.
The Results of the Veres/T3 Annual Software Survey
Joel Bruckenstein of T3 and I just released the 2021 T3/Inside Information Advisor Software Survey, which includes user ratings and market share statistics (and year-on-year changes to both) for more than 400 different software products and services in 32 different categories.
Future-Income Focus May Boost Current DC Plan Savings
Planning for retirement has historically been focused on saving as much as possible.
Inflation Has Gone K-Shaped in the Pandemic Like Everything Else
Low-income Americans bore the brunt of job losses when the pandemic arrived. Now they’re getting hit hardest by price increases as the economy recovers.
Using Asset-Map in the Client-Discovery Process
The Asset-Map process and its toolset is a force for robust conversations that provides the basis for your advice.
Don’t Mistake Rapid Jobs Gains for a Strong Labor Market
Despite a strong March 2021 jobs report, full employment remains far away.
Hit Me With Your Best Shot: Speculative Trades Take a Breather
As Shakespeare might put it, “full of sound and fury, signifying nothing” is perhaps an apt way to describe the character of the market so far this year.
Survey Of Retail Investors Shows The Blind Lead The Blind
In retail investing, do the “blind lead the blind?” Such was a question I asked recently about young investors who are “Long Confidence And Short Experience.”
The Eight Great Misconceptions About Bonds
I’ve spent more time explaining bonds to clients than stocks, mostly overcoming eight great misconceptions about fixed income.
What Are You Telling Your Clients about Coming Changes in the Estate Tax Exemption?
As we know, change is on the horizon, in one way or another. The current exclusion limits are scheduled to expire in 2025, according to the terms of the TCJA, unless renewed by Congress.
The Dilemma - Why investments Must Be Boosted But Also Why Society May Not Be Able to Afford It
You know society is in trouble when the Prime Minister of your country stands up and says something along the lines of “of course we can afford to take on more debt – you are old-fashioned if you think otherwise”.
Money Seemingly Boundless
Within days of each other in March two Northeast Ohio legends passed away: Michael Stanley and Joe Tait.
17 Dividend Stocks for High Retirement Income: Part 2
In part 1 of this two-part series on dividend stocks I covered 2 utility stocks, 4 REITs, 1 information technology company, and 2 financials.
Animal Spirits at Cocktail Parties
My generation, millennials (those born from 1980 to 2000), have been noted for much of the last 10 years to be a risk averse group.
Biden’s Stimulus Will Cut Poverty By 40% – For One Year.
President Biden’s stimulus bill “will cut the number of children in poverty by 40%,” according to the Center on Budget and Policy Priorities.
Ask Brad: The Math Problem Brokers Can't Solve
I want to share a math formula I often discuss with advisors. This is for anyone considering transitioning their practice to the RIA model or is already working through those steps but is struggling to reach the finish line.
To Disclose or Not … is Not the Question
ESG is at the forefront of contention at the SEC. Differences between Republican and Democratic commissioners are sharp and clear.
17 Dividend Stocks for High Retirement Income: Part 1
Last week I posted the video “10 Dividend Growth Stocks To Beat The Market” In that video I was primarily focused on investing in faster growing attractively valued dividend growth stocks for high total return and potential market beating returns.
Tax Hikes Are Coming
The federal budget deficit hit an all-time record high of $3.1 trillion last year.
Will Taxes Rise in the U.S.?
Democrats could begin working on a tax bill later this year, but resulting tax hikes may be weaker and less of a headwind to growth than some fear.
Inflated Fears of “Rigged” Markets and Hyperinflation
Our economy is recovering; the stock market is booming. Yet I'm hearing investors express much more fear now than they did last March when the stock market was falling off a cliff. I see a couple of reasons for this.