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A book should not be judged by its cover — or by the cover that someone else has put on it. (Spring 2015)
When Nobel Prize winning economist and Yale University professor Robert Shiller speaks (or muses) about the markets, investors listen.
Despite the enormous amount of discussion about helping DC participants create a lifetime income stream from their DC savings, we have yet to see any significant change in how participants actually implement retirement income strategies during the accumulation phase.
A comprehensive study by PwC projects that ETFs are on track to double to $5 trillion by 2020. A view of what is driving much of this growth helps to shed light on what may lie ahead for the DC market.
As the the U.S. represents an ever-decreasing share of the world’s capital markets, plan advisors and asset allocators must continue to evaluate the role of international diversification in their DC investment lineups.
Smart beta’s name continues to be surrounded by confusion. The important question that needs to be answered is whether this new catchphrase is helpful to investors seeking to understand the best investment strategy for their particular situation.
Researchers have predicted that equity returns will suffer once the Baby Boomers begin to retire, since retirees are less inclined to invest in stocks given their need for income and their shorter investment time horizon.
There’s a lot of fear in the market. Though that fear was sparked by a huge drop in oil, today’s geopolitical backdrop provides additional sources of fear that further increase investor angst.
Exploring some of the criticisms of TDFs helps to create a framework for focusing on future innovations. (Winter 2014)
As it relates to the recent downward pressure on emerging market returns, it certainly seems that EM has entered a perfect storm of geopolitical and economical events.
By 2019, 88% of all new contributions will go to target-date funds, according to a recent report from Cerulli.
Every sweet hath its sour, every good its bad,” Ralph Waldo Emerson wrote in his essay, “Compensation.” So it seems to be the case with the two main asset allocation constructs offered to DC investors: target-date funds and managed accounts.
As evidenced by the increasing use of passive investments in DC plans, investment costs have become increasingly influential in terms of how plan sponsors and their advisors select investment vehicles.
How could so many economists be mistaken about where yields were headed this year? And what does that mean for forecasts calling for rising short-term interest rates in 2015?
The born-on-the-web RIA firm, Rebalance IRA, recently produced a report, aptly titled, “Nearly Half of Americans Surveyed Falsely Think They Pay Zero Retirement Investment Fees.” The study found that when asked what they pay in retirement account fees, 46% believed that they do not pay any fees at all.
Though TDFs are often criticized for not taking into consideration outside assets and other risk factors, the bigger issue may be the cashing out of stocks due to an early withdrawal event.
Effort by plan sponsors and their advisors grappling with volatility and its impact on participant investing is time well spent.
Just as emerging markets (EM) has materialized as a major asset class over the last 25 years or so, frontier markets — those countries that are not sufficiently developed to be included in the emerging markets index — now resembles what EM looked like in the late ’80s.
Responsibility for optimizing outcomes is shifting toward the advisor as coordinator of best practices among providers. (Fall 2014)
In a MarketWatch post, “The No. 1 Flaw in America’s Biggest 401(k) Plans,” author Paul Merriman makes three observations concerning the investment lineups of the 100 largest U.S. companies’ 401(k) plans.
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