In the current market environment, safe assets simply do not pay what they once did, but that doesn’t mean annuities have become less attractive. In fact, on a relative basis, annuities currently make a lot of economic sense.
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On the heels of a 12-year bull market, investors unrealistically still expect outsized returns, Natixis finds.
But those who fall short on saving are experiencing financial stress.
For some years now, advisory firm owners have enjoyed a sellers’ market that has spurred record merger and acquisition volumes.
Retirement investors have little choice but to stay the course; even backing away from the markets for a short period can prove detrimental to long-term returns.
“Although the unfortunate reality is that volatility like this may be here to stay until the coronavirus runs its course, experience has proven time and time again that cool heads typically prevail,” analysts say.
Investors continue to favor fixed income, the Alight Solutions 401(k) Index finds.
Asset managers also expect modest economic growth to shift investors’ attention to smaller companies, value stocks and cyclical sectors.
Investment experts remind retirement investors that international investments can help to diversify a portfolio
Brexit uncertainty. An inverted yield curve. A burgeoning trade dispute between the U.S. and China. Slowing global growth and shifting currency valuations. Is it all enough to spark a recession?
It was also the 18th month in a row that net trades have moved from equities into fixed income
“We just had an asset-allocation meeting and we spent probably half of it talking about global trade tensions and the China-U.S. relationship,” says Bob Brown, CIO at Northern Trust. “This is a big deal for the markets. The two largest economies in the world have changed the nature of their relationship.”
Both groups have become less optimistic since the start of the year, according to Nationwide.
Novice investors’ reactions to stock market volatility present an endless and intriguing field of study for behavioral economists, but for financial advisers, poor client decisionmaking is a serious issue.
Pension plans’ funding rose a mere 70 basis points last year, according to Goldman Sachs Asset Management.
While passive target-date funds (TDFs) dominate the defined contribution (DC) retirement plan market, Cerulli suggests that touting advantages of active TDFs could make plan sponsors reconsider.
It was the slowest start to the year in the 20-plus years of the Alight Solutions 401(k) Index.
With participants not panicking in Q4 2018 and the longer term trends resulting from automatic plan features, Fidelity Investments finds an overall improvement in average participant savings and account balances.