Category : In the News

Vanguard: Mind fund details, not labels

Article Link: http://vanguardadvisorsblog.com/2016/05/18/mind-fund-details-not-labels/ Summary Frank Kinniry, a principal in the Vanguard Investment Strategy Group, discusses why it is important to understand the details of an investment rather than simply painting an entire category with the same brush. The line between so-called active investments and so-called passive investments has blurred. Hundreds of ETFs and “smart beta” funds have come to market in recent years. While many ETFs are traditional market-capitalization weighted index funds, many (including so-called smart beta funds) are not. […]

T. Rowe Price: A Case for International Equities

See chart below Summary The chart shown above was provided by T. Rowe Price in a recent investment theme paper. T. Rowe Price notes that some investors may be questioning the need for international investments in their portfolios considering the U.S. stock market has consistently outperformed foreign markets over the past nine years. They note that out/under performance of the U.S. stock market compared to developed foreign equity markets tends to run in cycles. The current cycle of U.S. stock […]

MarketWatch: When financial ‘advice’ is really a sales pitch

  Article Link: http://www.marketwatch.com/story/when-financial-advice-is-really-a-sales-pitch-2015-09-15   Summary The article discusses differing views on the Department of Labor’s effort to increase transparency and accountability in the financial services industry regarding investment advice. A table in the article separates providers of financial advice into four categories; 1) brokers; 2) registered investment advisers; 3) insurance agents; and 4) dually registered advisers. The table provides a good summary of the products/services offered, how each group is paid, the regulatory standard followed and the primary regulator. The […]

Bloomberg: Your Retirement Savings Might Not Go as Far

Article Link: http://www.bloomberg.com/news/articles/2016-05-12/your-retirement-savings-might-not-go-as-far   Summary 10-year U.S. Treasury bonds pay less than 2.0% per year. In other parts of the world, yields on government bonds are effectively negative if held to maturity. The U.S. equity market has produced significant gains since the market low in March 2009. Low yields on fixed income investments combined with large recent gains in the U.S. equity market means that investors should expect lower returns in the future. As a result, retirees may need to adjust […]

Planadviser: Plan Participants Need Understanding of Roth Accounts

Article Link: http://www.planadviser.com/Plan-Participants-Need-Understanding-of-Roth-Accounts/   Summary According to a Willis Towers Watson survey, the percentage of plan sponsors offering a Roth option has increased in recent years; however, very few plan participants that have this option are actually making use of it. Unlike traditional 401(k) contributions, Roth 401(k) contributions are made using after-tax dollars, which allow for tax-free withdrawals at retirement. Contributions to a Roth 401(k) may help to diversify a participant’s exposure to taxes in retirement.   Our Take Investors (in […]