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Basics: age & income & specific responsibilities in life matter in the mix of assets in one’s portfolio.

Although this investment class can be considered the most conservative of the three, the low yield of government bonds in the past 10 years does not lend a comparative metric against many other investment opportunities (Jacobs, 2012). The fixed rate of these instruments allows for a guaranteed return, but should only be utilized at a point in an investing cycle when risk is higher than potential income growth. The 25% allocation that is invested in this class is positioned to provide a long term guaranteed investment, with the possible that these lower rates will not rise significantly in the next few years.

Bain’s clients’ portfolios included equities (both common and preferred) as well as fixed income securities and small amounts of cash (typically “parked” on a short term basis before being allocated to fixed income or equities). Typical portfolios were approximately 60% equities and 40% fixed income, 70% domestic and 30% international. Approximately one third of equity investments were through mutual funds. Approximately 25% of client assets were included in tax sheltered Registered Retirement Savings Plans (RRSPs). As of 1991, Bain’s clients were primarily over age 70. As of 1995, his client base had evolved to become much younger, with a median age of around 50. his clients were dominated by professionals.

After one year, all superannuation strategies offered returns between -0.20 per cent and 0.15 per cent, and are exemplified in the graph below (Figure 4).

Now that 401k and IRA plans are the sole form of retirement planning, it has become a problem for Americans to save anything. Employee sponsored 401k plans have become the status quo in retirement planning but not all employers are able to offer the benefit. The emergence of automated investment platforms aims to tackling this problem making them easily accessible for businesses of all sizes. While its effect wont be felt for another few years it’s a great first step to addressing the growing retirement

Eighty three million millennials felt the repercussions of the stock market crash last decade. If you’re among that cohort and are afraid to get started with investing, read on to learn how to overcome your fear and start building a portfolio that can get you started on your way to reaching your financial goals.

We will suggest some rationalization of the product range and propose a new promotion of the most promising account. This will involve the introduction of a new product to meet a predicted increase in demand for self-managed superannuation funds.

When it comes to investing, millennials adhere to a different approach than their parents. Young investors, who have been through two market crashes, have developed skepticism and mistrust towards banks and traditional advisory services. Many millennials prefer to save and forgo investing all together. For those willing to test the market, technology and social trends play a significant impact on their decision making. With millennials now outnumbering baby boomers in the U.S., many traditional financial services strive to connect with the younger generation. This comes on the heels of a noticeable upward trend in financial technology and online wealth management. Through the use of technology, robo-advisors have built a successful foundation for attracting young investors.

Individual retirement accounts (IRAs) have become a dominant retirement vehicle in the US. As a result, the IRA has become a major asset class that stands out in the estates of many high net worth individuals. For those with outside funds who are drawing only the required minimum distributions (RMDs), the IRA can be a great asset to pass on to the next generation. Younger heirs will have the ability to stretch out the tax-deferred status of IRA assets by taking out distributions over a long period of time. Additional wealth can be transferred through the tax-deferred growth in these assets. Unfortunately, the ability to stretch out distributions is not automatic and the rules are more complex than most people realize. One wrong move could

Both Blunt and Mathas knew this would be an uphill battle, however. Historically, investment advisors preferred to actively manage their clients’ funds, whereas an immediate annuity represented an irrevocable one-time transaction. In addition, most advisors favored a fee-based business model rather than one in which they would receive only a one-time commission. Complicating matters, research suggested that consumers were almost completely unaware of the existence or benefits of immediate annuities. Yet Mathas had faced doubts about this product before, and he genuinely believed that, in the ever-changing landscape of retirement planning, immediate annuities offered great benefits for those in or approaching their retirement years.

Return Objective – The fund seeks a short-run total return proportional to its risk tolerance. Based on the segmented strategic asset allocation, the fund looks to receive a return

JENSEN, M. C. 1968. The performance of mutual funds in the period 1945–1964. The Journal of finance, 23, 389-416.

His lack of diversification is a strong contrast to that of the traditional method; however, this lack of diversification has helped his personal portfolio to outperform market indexes, used as benchmarks for returns on stock market investments, such as the Dow Jones Industrial, the Nasdaq, and the Standard and Poor 's 500 (S & P 500) every year for the past 40 years.

The little book that builds wealth : Morningstar’s knockout formula for finding great investments /

Our target audience includes young professionals and students who are tech savvy and interested in learning how to invest their money.