The 60/40 Portfolio Isn't Dead, Just More Expensive: Allison Schrager
Volatile, pandemic-riven markets for stocks and bonds has Wall Street ready — again — to declare the traditional 60/40 portfolio split a dead strategy. The prospect of a low-growth, high-inflation economy (stagflation) dims the prospects of both investment categories, and certainly demands a rethink of where to stash your savings.
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.
The Importance of Marginal Tax Rates in Retirement Planning
We published an article in late September, Pay Attention to Marginal Tax Rates and Not Tax Brackets, that highlighted how the analytic framework for providing retirement income planning advice can be improved. It focused on three decisions that investors sometimes need to make: (1) whether to convert funds this year from a tax-deferred account (TDA), like a 401(k), to a Roth account; (2) whether to contribute this year to a TDA or a Roth account; and (3) how to tax-efficiently withdraw funds in retirement, where withdraw is interpreted broadly to include Roth conversions. The author of that article is with me today to discuss how advisors should approach those decisions.
On the Solvency of Social Security
Social Security’s shortfall grew by a record 18% in the last year. That $3 trillion increase means that it is more likely beneficiaries will face reduced benefits in the future, and the longer we wait the harder it will be to solve the problem.
COVID-19 Strained Participant Financial Wellness - Can Employers Help Them Recover?
With COVID-19 still a top employer concern, protecting workers’ health and well-being naturally comes first. But the pandemic’s impact isn’t limited to only physical and mental health: financial wellness is also ailing. The crisis has exacerbated the problem, but it’s not exactly a sudden occurrence.
Why Risk Tolerance Questionnaires Don’t Work for Determining Retirement Strategies
Using a risk tolerance questionnaire to establish a retirement income strategy is akin to your doctor checking your pulse to measure your cholesterol. There is nothing wrong with checking your pulse, but it is an inappropriate test for the situation. We propose an alternative test – the RISA – to select the best deaccumulation approach.
Post-Retirement Resources for Clients
Having counseled numerous clients through the retirement process, I realized there was a missing piece – purpose! To be happy, retirees need something meaningful to wake up for every day. Here are some resources – paid and unpaid – to let them do that.
ETF Industry Risks Losing Key Tax Edge as Democrat Whets Knife
Amid the deluge of headlines in the past few days about congressional proposals to boost taxes on companies and the wealthy is one that would affect regular investors -- and potentially alter the entire U.S. fund landscape.