Investing Aggressively Doesn’t Match Saving Consistently
Results of a new analysis published by Dimensional Fund Advisors suggest that embracing higher equity exposures prior to and during retirement is an inadequate tool to manage longevity risk.
Tag: Fixed income
Investing
Investing
Average 401(k) Equity Allocation Surpasses 70%
The latest update of the Alight Solutions 401(k) Index shows the average asset allocation to equities rose in June to the highest level in 20 years.
Some Experts Foresee ‘Supercharged’ Recovery Coming
Sources say 2021 was already coming together as a year of very strong economic growth, and with the passage of an additional $1.9 trillion in fiscal stimulus support, a broad-based recovery could come sooner than later.
Compliance
Investing
Senators Talk GameStop, Meme Stocks, Payment for Order Flow and More
Who gets to define best execution? Is T+1 or T+2 better for market stability? What even is payment for order flow? The Senate Banking Committee tackled all these questions and more at a dynamic Tuesday morning hearing.
The Future of the 60/40 Portfolio
Investment experts say it’s not the percentages of a 60/40 portfolio that need to change for it to be effective in the future—it’s the components.
Looking for Investment Standouts in the Current Environment
Asset managers share strategies retirement plan investors should consider to weather the low interest rate and volatile equity environment.
401(k) Investors Traded Exclusively Into Fixed Income in October
It was the first time in the more than 20-year history of the Alight Solutions 401(k) Index that this happened over the course of an entire month.
Investing
Can Fixed and Variable Annuities Go Together?
Investing experts say smartly pairing the two types of annuities with other investments in a retirement portfolio can deliver significantly more income compared with a traditional withdrawal strategy.
Trends
Investing
Interest Rates’ ‘New Normal’
By bringing longer-run goals and strategy into alignment with changes in the economy, the Fed aims to strengthen support for economic recovery.
Coronavirus Rocks Long-View Capital Market Assumptions
Comparing asset managers’ five-year capital market assumptions published in late 2019 and early 2020 with the newly updated versions being circulated today is an eye-opening exercise that underscores the staggering economic impact of the coronavirus pandemic.
Investing
Market Observers Mixed on Where Stocks Go From Here
While the S&P 500 has recovered all its losses from the first quarter plunge, the comeback hasn’t been equal across all sectors. What comes next is anyone's guess.
Investing
Investing
FOMC Action Cements New Normal for Rates, Inflation Outlook
The economy is always evolving, says Federal Reserve Chair Jerome Powell, and so the nation’s monetary and fiscal strategies for achieving its goals must evolve as well.
401(k) Participants Barely Touched Accounts in July
However, the movement from equities to fixed income continues, according to the Alight Solutions 401(k) Index.
Investing
Investing
A Bad Time to Stretch for Yield
We were already in a new normal of very low interest rates before the coronavirus pandemic struck. It now seems even less likely that the old rate regime will re-establish itself any time soon.
Should Fixed Income Come First in Glide Path Discussions?
The equity side of the portfolio tends to get a lot of air time, but experts agree that a more balanced approach should increase the likelihood of participants attaining their desired outcomes.
ESG and Fixed Income—a Natural Fit
Both quantitative and qualitative research suggest bonds issued by companies with favorable environmental, social and governance (ESG) ratings can offer downside mitigation during periods of market turbulence.
Investment-Oriented
Investing
Make It Last
Participants must choose income products that meet their individual needs.
401(k) Equity Allocations Edged Higher in October
While trading during the month favored fixed-income funds, with the positive stock market movements, average asset allocation in equities increased from 67.1% in September to 67.3% in October.
Investment-Oriented
Is Fixed Income Working?
For older participants, advisers should find investments that avoid volatility.
What Prolonged Low Rates Mean for TDF Investors
While they are responding in different ways, tactical and strategic target-date fund managers all have to adjust to a new normal of persistently low U.S. and global interest rates.