This should be a focus when looking at target-date funds (TDFs) often used as the default investment in employer-sponsored defined contribution (DC) plans.
Among the remarkable characteristics of today’s global fixed-income marketplace is the $15 trillion invested in negatively yielding bonds.
They also foresee continued volatility in the stock market, but are turning to active management and alternative strategies to mitigate its risk.
Clients with defined benefit plans that are currently enjoying a bump in funded status may want to act soon to lock in those gains while market conditions remain favorable.
Vanguard’s chief economist warns that rising rates may sting in the short term, but book value losses should be offset by higher future returns—rewarding those with perspective and strategic patience.
Sixty-eight percent say they pay close attention to inflation as they prepare for retirement.
“By providing a more diversified set of fixed income options, plan sponsors can help participants be better equipped to weather any challenging market environment, such as the rising rate environment we are in right now,” a Insights article from Cammack Retirement concludes.