Displaying items by tag: retirement

Annuities, once sidelined as overly complex or narrowly useful, are now experiencing a surge in demand as investors prioritize stability, protection, and predictable income in a volatile economic landscape. This shift is driven by pre-retirees and retirees rethinking traditional equity-focused strategies and seeking solutions that mitigate risks like sequence-of-returns. 

Fixed and fixed indexed annuities, in particular, offer competitive yields, downside protection, and guaranteed income, features especially appealing to mass-affluent households with limited pension coverage. 

The Great Wealth Transfer is also fueling interest, as boomers explore annuities not just for income but for legacy planning as well. Meanwhile, advances in digital tools and platforms have made annuities more transparent, accessible, and easier to incorporate into holistic financial plans. 

Finsum: Even as interest rates fluctuate, annuities are expected to remain a core solution for those seeking long-term financial confidence over short-term market gains.

Goldman Sachs Asset Management has introduced the GS Private Credit CIT, a collective investment trust designed to bring private credit strategies into defined contribution retirement plans. The fund will invest in North American and European direct lending and private placements, while maintaining a liquidity sleeve to meet daily portfolio needs. 

It has already been selected for inclusion in the Panorix Target Date Series by Great Gray Trust Company, which aims to offer institutional-quality investment strategies to retirement savers. Panorix will feature a custom glidepath from BlackRock, liquidity management from Wilshire, and a mix of public and private asset exposure including the GS Private Credit CIT. 

This launch leverages Goldman’s $142 billion private credit platform and global underwriting capabilities to give retirement savers access to tools traditionally reserved for institutional investors. 

Finsum: As public markets grow more concentrated, CITs can provide diversification and growth potential through private credit exposure.

Estate planning is often overlooked or treated as an afterthought, crammed into the final moments of client meetings, if it’s offered at all. Yet nearly all investors, especially younger ones, now expect their advisors to include estate and tax planning as core parts of a holistic financial strategy. 

As trillions of dollars shift between generations, advisors who avoid these conversations risk irrelevance and client attrition. A modern, effective approach to estate planning requires more than good intentions, it demands scalable technology, family-inclusive strategies, and clear, repeatable processes. 

Platforms that visualize beneficiary summaries, tax impact, and legacy goals not only make these conversations easier but also more meaningful and professional. 

Finsum: In today’s competitive advisory landscape, firms that prioritize thoughtful estate planning will be the ones that grow, retain assets, and lead the next era of wealth management.

Only about 6% of advisors planning to retire within the next ten years have a fully documented succession plan in place. While most first‑generation (G1) advisors express confidence about their transition, many feel reluctant to relinquish control, with 58% admitting they struggle to hand over leadership functions.

 On the other hand, successors (G2 advisors) often report uncertainty about timelines and compensation, and roughly one in three say they would consider leaving if the succession path remains vague. 

To bridge the gap, the study identifies three pillars essential for successful transitions: transparency, training, and tangible, documented leadership plans. Equity incentives also matter: fewer than half of G1 advisors have transferred any ownership stake, which fuels G2 turnover risk when their compensation lacks clarity. 

Finsum: Ultimately, without structured alignment between retiring firm owners and their successors, firms face elevated risks of client attrition, fractured continuity, and erosion of enterprise value.

Married retirees with an age or income gap can significantly reduce their Social Security tax bill in 2025 by delaying benefits and strategically using the new $6,000 Senior Deduction. For example, when the older spouse defers Social Security until age 70, it not only boosts lifetime income but also helps lower the couple’s current combined income, keeping more benefits tax-free. 

Roth IRA conversions during low-income years and Qualified Charitable Distributions (QCDs) after age 70½ are smart ways to cut taxable income without losing access to deductions. The Senior Deduction becomes especially powerful when couples keep their Modified Adjusted Gross Income (MAGI) under $150,000, the cap for eligibility. 

By timing withdrawals from IRAs to coincide with lower earning years and coordinating the younger spouse’s income, couples can avoid tipping into higher Social Security tax brackets. 

Finsum: A well-planned mix of benefit delays, tax-efficient withdrawals, and smart giving can make retirement income go further while keeping taxes in check.

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