Retirement

This morning's seasonally adjusted 6.65M new claims, up 3.3M from the previous week's revised figure, was worse than the Investing.com forecast of 3.5M.

We at Research Affiliates recently conducted our first virtual All Hands meeting after finding ourselves working from home in the wake of the COVID-19 crisis. As CIO, I responded to questions about our investment strategy. Katy Sherrerd, CEO, and Jeff Wilson, Head of Distribution, asked me to elaborate more broadly on my response to one of the questions submitted by email the day prior.

Visibly absent from the media coverage of the coronavirus crisis is a plan to address the emotions that are overwhelming our clients. Indeed, doing so is an implied mandate of our profession.

I’m going to guide you through a process to overcome the four major ways planning for female executives gets derailed.

The $2.2 trillion stimulus is the biggest ever, but Congress will likely be forced to do even more.

The consequences of policymakers returning to the same tools employed in the financial crisis.

Since the market downturn began, TD Ameritrade has seen new-account openings for its automated investing platform jump 150%.

Rebalancing is a case where inaction creates risk to policy in volatile times. One of the most critical rebalancing points of the past decade is ahead of us. So now what?

The coronavirus will accelerate the changes to the wealth management industry predicted by McKinsey & Co.

Relief efforts measured in trillions of dollars are bound to have some positive effect.

With the economic and market situation changing by the day, I decided to approach this letter a little differently. Rather than go deep on one topic, I’ll share brief bullets on the many points swirling in my mind. Think of it as Postcards from the Frontline. These will be in no particular order and may generate even more questions.

With the release of this morning's report on February Personal Incomes and Outlays, we can now take a closer look at "Real" Disposable Personal Income Per Capita. At two decimal places, the nominal 0.50% month-over-month change in disposable income was reduced to 0.41% when we adjust for inflation. This is a change from last month's 0.56% nominal and 0.42% real increase last month. The year-over-year metrics are 3.50% nominal and 1.68% real.

Personal Income (excluding Transfer Receipts) in February rose 0.61% and is up 3.7% year-over-year. However, when adjusted for inflation using the BEA's PCE Price Index, Real Personal Income (excluding Transfer Receipts) MoM was up 0.52%. The real number is up 1.9% year-over-year.

There are three key areas where the allocation requirements of passive fixed-income vehicles have an impact on the market.

I expect that the most valuable aspect of our investment discipline over the completion of this cycle will be our ability and willingness to flexibly respond to changes in observable market conditions as they emerge.

While the country and the stock markets reel from the impact of the Coronavirus, many economists and politicians are calling for the government to fight the pandemic as if we had to fight the Second World War all over again.

Liquidity could remain challenged, but valuations may be attractive for long-term investors.

Intellectually, I’m confident the virus will be contained, the economic stimulus (when it’s passed) will reinvigorate the economy and this crisis will pass. The market will eventually recover. Emotionally, I’m terrified.

Postcard from Vietnam: On a research trip to Vietnam before the coronavirus crisis, our analysts discovered what it takes for manufacturers to outsource successfully.

India will suspend all domestic flights from midnight Tuesday as part of a nationwide lockdown that threatens the country’s economy.

Does market history offer any parallels to today’s novel coronavirus crisis?

The market’s response to the coronavirus had a stark effect on portfolio values. Less apparent, but more important, was how it reduced the probability that your financial plans will succeed in reaching your clients’ financial goals. Here’s an example of how devastating that may be and how you should communicate this to clients.

U.S. stocks fell again on Friday, ending another volatile week, as coronavirus fears outweighed central bank and government attempts to support the economy. The S&P 500 index fell 4.3% on Friday, and is now down 31.9% from its February peak.

We entered into the current crisis with a whole financial system that had been incentivized by policymakers to take on excessive levels of debt and leverage. The turmoil we are seeing right now is the result of the unwinding of this leverage.

Markets often overshoot, and just because things are cheap doesn’t mean they can’t get cheaper.

After an initial cover-up and more than 3,000 deaths, China appears to have brought COVID-19 under control, just as the spread of the coronavirus is accelerating across the U.S. and Europe. With China's domestic-demand driven economy set to rebound and mainland investors avoiding the panic that has smacked western markets, its economy could put a floor under global growth and offer a safe haven to investors.

Without the right programs, this shortfall in credit availability will increase and it will further deepen the crisis.

On the front lines of investing, advisors have been trying to guide their clients in fathoming the gut-wrenching market correction.

The industries almost entirely shut down by the virus are disproportionately staffed by women.

As COVID-19 spread around the world in the early months of 2020, governments enacted quarantines, travel bans, school closings and other measures. Global supply chains were disrupted. Reduced demand is weighing on many industries, starting with travel, hospitality and leisure. Oil prices dropped after Saudi Arabia boosted production, in effect launching a price war with Russia. U.S. Treasury yields fell to record lows.

The industry luminary reflects on how financial advisors will be impacted by the coronavirus and why he joined Buckingham Wealth Partners.

The first big step in financial planning is examining your clients’ passions and pursuits.

Advisors can better serve their clients on one of the most important investments they will ever make – their family’s education.

The Fed still has a number of tools at its disposal that haven’t yet been implemented.

Month-over-month nominal sales in February decreased by 0.5% (0.53% to two decimal points). Real Retail Sales, calculated with the seasonally adjusted Consumer Price Index, decreased by 0.6% (0.62% to two decimal points).

In a move that has bewildered many CFPs, the CFP Board of Standards took a giant step backward in transparency. It chose to no longer inform consumers searching for a CFP of advisors' compensation models.

Suppose that three months ago someone had asked you what the probability was that a virus would cause the stock market to crash in 2020 – not a computer virus, mind you, but a microorganism. You might have said the probability was infinitesimal. You might have said one in 10,000. Or you might have done a study – albeit utterly lacking in statistical significance – of what happened to the stock market when diseases spread in the past.

In this remarkable period in our history, we must renew our resolve to the commitment to always do that which is true and noble for all. Together, we can meet this historic challenge.

Stocks rebounded on Friday, ending a week of wide swings that drove major U.S. stock indexes into bear-market territory. Overall, it was a rough week for the stock markets.

Stocks have plummeted this month as investors struggled to assess what impact the COVID-19 coronavirus may have on the economy.

Our four general rules to help keep clients calm and invested when markets turn choppy.

The tax drag from fund distributions can be bigger than the alpha of a top-performing manager and considerably larger than the difference in fees between funds.

The Tax Policy Center estimates that income taxes would go up for all Americans, but the largest raises in both dollar and percentage amounts would be on the wealthiest.

The coronavirus that’s forcing lockdowns and roiling economies is spurring a silent revolution in the field of telemedicine. Patients are turning to such services and governments around the world are setting aside reservations about the risks of “couch consultations” to ease regulations.

U.S. stocks fell again on Wednesday, with the Dow Jones Industrial Average closing in bear market territory.

We've updated this series to include the February release of the Consumer Price Index as the deflator and the February monthly employment update. The latest hypothetical real (inflation-adjusted) annual earnings are at $40,373, down 10.5% from 45-plus years ago.

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 our monthly workforce analysis to include Friday's Employment Report for February. The unemployment dropped to 3.5%, and the number of new nonfarm jobs (a relatively volatile number subject to extensive revisions) came in at 273K.

Investors have been awoken to the carnage of the last three weeks. These circumstances, while unenjoyable, may be hiding the actual problems with today’s market. The unforeseen circumstances of today are no different than the past.

U.S. stocks plummeted on Monday, with the S&P 500 index closing down 7.6%, its worst day since 2008, capping two weeks of extreme volatility amid the spreading coronavirus epidemic.

Note: This commentary has been updated with the latest numbers from 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.

An area of expertise or niche like retirement-income planning is not enough to stand out and for new clients to find you. Top-growing firms recognize this challenge and have adapted by becoming content marketers.

Future-oriented planning serves a purpose, but it misses the central question: What do your clients want their lives to look like?

Here are five steps to help guide you toward your own vision for 2030.

If I had written a commentary on how 4,000 people dying from the flu would topple global financial markets, I think I would have been deemed insane. Yet today that is exactly the story.

How will the real professionals, going forward, distinguish themselves from the sales agents who are once again comfortably fitting themselves into sheep’s clothing?

I am going to divide this letter into three sections: health and human impact (sometimes a tragic one), economic impact and investment strategy.

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).

Susan John, chair of the CFP Board in 2019, explains her support of the CFP Board’s decision to remove compensation information from its web site.

Warren Buffett boosted his stake in Delta Air Lines by 976,000 shares last week, raising his total holdings to 17.9 million shares. This was enough to bring Buffett’s ownership of Delta up to more than 11 percent.

Responsible investing has gathered enough momentum in recent years to reach the mainstream. What is less clear is how far along global institutional investors are in the process of integrating environmental, social and governance (ESG) principles into their investment decisions.

CFP Board CEO Kevin Keller is wrong on the facts, the law and common sense.

The CFP Board has eliminated compensation disclosures from its consumer-facing website. It may have had good reason to.

For a lot of women executives, budgeting requires a big change in behavior.

I read your article about the person with a boss who falls asleep and it inspired me to write. What about a boss who is a fluffy, “everything is beautiful” person who never admits anything is wrong?

Margaret Farquharson is a senior director with the Nationwide Funds Group and leads its exchange traded fund business, where she has oversight for all aspects of the business including product development, product management, marketing, distribution, and operations.

Bob Browne is the chief investment officer of Northern Trust Asset Management, which has more than $900 billion in assets. He chairs the firm's investment policy committee, which sets investment policy for all Northern Trust groups. In this interview, he discusses his views on the global economy and markets.

What software programs are advisory firms using, and what is the market share of each program in each category?

We take for granted the government’s ability to print money and to provide credit to banks and other third parties. Those powers evolved from political struggles nearly 200 years ago, and that episode in our history carries a message for those who argue against an independent Fed or for policies such as MMT to fight inequality.

A George Washington University professor says advisors should target clients based on how financially literate they are rather than on their level of assets.

Advisors should help clients over age 50 reduce debt, not just build savings.

The Secure Act provides financial advisors multiple opportunities throughout the coming year and beyond to engage in meaningful interactions with their clients and industry contacts regarding the impact of the new rules, and potentially create new relationships with prospects. This whitepaper will help you take advantage of the gift that will keep on giving and learn more about how you can grow your business by leveraging the benefits of The Secure Act.

While we remain optimistic about the markets currently, we are also taking precautionary steps of tightening up stops, adding non-correlated assets, raising some cash, and looking to hedge risk opportunistically on any rally.

If the virus in fact becomes a national crisis, it might have a bearing on how a segment of voters decides whether to support the President in any of three ways...

Commodities look oversold right now, meaning there could be some potentially attractive buying opportunities. Brent crude oil, the global benchmark, traded below $50 per barrel on Friday for the first time since July 2017, while copper remained mostly range-bound.