Displaying items by tag: retirement

Voya Financial is expanding its target-date offerings with the launch of the MyCompass Target Date Blend Series, a new collective investment trust (CIT) overseen by Great Gray Trust Company. 

This addition strengthens Voya’s foothold in the growing target-date market, where it already manages more than $25 billion in assets. Sub-advised by flexPATH Strategies, the series benefits from Voya Investment Management’s expertise as a glide path fiduciary, ensuring thoughtful asset allocation. 

Designed to complement Voya’s existing MyCompass Index and MyCompass American Funds solutions, the Blend Series mirrors the firm’s Target Retirement Trust (TRT) framework. Key features include a participant-focused glide path, a mix of active and passive strategies, a multi-manager approach for diversification, and stable value fund allocations to reduce volatility for those nearing retirement. 

Finsum: The finer details such as the glide path can make a huge difference for clients. 

With more retirees seeking financial security, index annuities have gained popularity in 2025 for their mix of protection and growth potential. Index Annuities shield savings from market downturns while allowing interest accumulation when markets rise, making them a safer alternative to traditional investments. 

They also offer guaranteed lifetime income, ensuring retirees don’t outlive their savings, a critical feature as life expectancy increases. Rising interest rates have further enhanced index annuities appeal, as new contracts now offer better returns compared to bonds. 

Additionally, their tax advantages, including tax-deferred growth and flexible withdrawals, help retirees manage their financial burden efficiently. 

Given these benefits, index annuities are becoming a key component of retirement planning in an uncertain economic climate.

Estate planning is becoming a key differentiator for financial advisors, with 80% of clients expecting support in this area, yet many advisors still overlook it. A significant gap exists in tax planning, as nearly 90% of clients worry about tax impacts, but less than half have taken proactive steps. 

Beyond taxes, estate planning ensures smoother asset transfers, addresses state-level taxes, and clarifies how heirs receive funds. Many clients also lack knowledge about trusts, particularly the benefits of revocable versus irrevocable structures. 

Advisors who integrate estate planning into their services are growing their books faster by attracting new clients and strengthening relationships.

Finsum: Advisors who ignore it risk losing assets to competitors who offer these essential services.

Defined contribution plans in 2025 will increasingly focus on generating sustainable retirement income as Social Security’s future remains uncertain and traditional pensions decline. 

In-plan retirement income products, such as annuities, hybrid target-date funds, and systematic withdrawal strategies, will see greater adoption, driven by regulatory clarity from the SECURE Act and SECURE 2.0. AI-powered digital tools will enhance retirement planning by offering personalized projections, dynamic withdrawal strategies, and automated guidance on Social Security and tax-efficient drawdowns. 

Employers will expand financial wellness initiatives, providing targeted pre-retirement education on income strategies, healthcare costs, and managing distributions. Recordkeepers and investment firms will integrate advanced retirement income solutions, making it easier for participants to transition from saving to spending. 

Finsum: Regulatory support is expected to continue, reinforcing the shift toward holistic, income-focused retirement planning.

Target-date funds offer a hands-off approach to retirement investing by automatically adjusting asset allocations over time. These funds balance growth and security by shifting from stock-heavy portfolios in early years to safer investments like bonds as retirement nears. 

Named for the investor’s target retirement year, these funds simplify decision-making and are commonly found in employer-sponsored 401(k) plans. A key factor in choosing one is its “glide path,” which determines whether asset adjustments stop at retirement or continue for years beyond. 

While convenient, investors should compare expense ratios and investment strategies to ensure alignment with their risk tolerance. Three TDF funds to consider are: 

1. Vanguard Target Retirement 2045 Fund Investor Shares (VTIVX) – Expense Ratio: 0.08%
2. Fidelity Freedom Index 2045 Fund Investor Class (FIOFX) – Expense Ratio: 0.12%
3. T. Rowe Price Retirement 2045 Fund (TRRKX) – Expense Ratio: 0.62%

Finsum: Despite their “set it and forget it” appeal, periodic reviews help maintain a well-balanced portfolio.