The financial volatility of recent years has made it clear that traditional retirement strategies may no longer suffice. The old 60/40 portfolio split between stocks and bonds has proven inadequate, as demonstrated in 2022 when both asset classes declined significantly.

 Retirees now face unique challenges such as sequence of return risk and inflation, which require a more adaptive investment strategy. Alternative investments, like private equity and venture capital, can offer opportunities for diversification and potential outperformance over traditional assets. Meanwhile, alternative strategies, such as long/short equity and merger arbitrage, provide potential protection during market downturns. 

Despite their complexity and potential downsides, incorporating alternatives can help retirees achieve a more resilient portfolio that balances growth, income, and capital preservation.

Finsum: Moreover, stocks and bonds are experiencing increasingly high correlation in returns compared to the last four decades, which should draw more inflow into alternatives. 

Major U.S. banks have continued to reduce their holdings in state and local government debt, decreasing their exposure by $3 billion in the third quarter. This trend was led by JPMorgan Chase and Bank of America, which together accounted for over half of the reduction. 

Other institutions, including State Street, Citigroup, and Morgan Stanley, also cut back on their municipal bond investments. This marks the third consecutive quarter of declining investments, the longest such retreat since 1996, driven largely by the reduced tax benefits following the corporate tax cuts. 

The banks' diminished demand has negatively impacted long-term municipal bonds, which have underperformed other maturities. However, the third-quarter reduction indicates a slower pace of the overall pullback compared to earlier in the year.

Finsum: Now might be an opportunity for those seeking value to consider munis as they are getting such little attention. 

In recent months, the stock market has been extremely volatile, prompting increased interest in low-volatility low-cost ETFs. While the market has seen gains this year due to a growing appetite for riskier investments, uncertainties like the Federal Reserve's future actions, geopolitical tensions, and the upcoming U.S. presidential election still loom large. 

Low-volatility ETFs offer investors a way to participate in the market with potentially less risk, although they are not immune to sharp downturns. These funds may underperform compared to more dynamic portfolios, especially during market surges. However, they can be attractive for those prioritizing capital preservation over high returns.

 Examples of popular low-volatility ETFs include the Invesco S&P 500 Low Volatility ETF, which focuses on the least volatile stocks in the S&P 500, and the iShares MSCI EAFE Min Vol Factor ETF, which targets lower-risk companies in developed markets outside the U.S.

Finsum: Be mindful of what thematic ETFs you want to integrate into your portfolios, because there will be a chance to capitalize in the coming months. 

National elections in the United States rely on over 774,000 poll workers to operate smoothly, alongside countless other volunteers who support activities like voter registration, transportation, and canvassing. Voting is central to democracy, but it is the dedication of these volunteers that makes free and fair elections possible.

 Changing how we view volunteering—from a casual choice to a vital civic duty—can strengthen communities and inspire broader participation in democratic processes. Volunteers are more likely to vote and feel deeply connected to their communities, yet the U.S. faces a decline in volunteerism that threatens its civic engagement. 

To reverse this trend, organizations and governments are working to make volunteering more accessible, such as by offering paid volunteer leave or organizing voter registration drives. 

Finsum: This is a great opportunity to for both community and civic engagement, and a less party centric way to engage with elections.

As the stock market hovers near all-time highs, investors are seeking a balance between optimism and caution, with alternative ETFs gaining traction as a popular choice for risk management and income generation. 

The latest data reveals that while U.S. equity and fixed-income ETFs lead in demand, alternatives ETFs are growing rapidly, reflecting a shift toward more diversified and protective strategies. These funds offer exposure beyond traditional stocks and bonds, incorporating elements like commodities, digital assets, and derivatives to manage risk and generate returns. 

Notably, products like the Global X Nasdaq 100 Tail Risk ETF and Fidelity's options-based portfolios are attracting attention for their innovative approaches to downside protection and income. The appeal of alternatives ETFs lies in their simplicity and accessibility, allowing even complex strategies to become core components of investor portfolios.

Finsum: Most of the time the downside of alts is the liquidity component, being able to use ETFs is a great way to counteract this. 

Gardening isn't just about growing plants; it's a wonderful way to cultivate wellness, both physically and mentally. Studies show that spending time in nature can reduce stress, improve mood, and boost overall well-being. If you've never gardened before, don't worry here are three tips to get you started: 

• Pay Attention to Sunlight

Sunlight is essential for most plants, especially vegetables, herbs, and fruits. Before you decide where to plant, take note of how sunlight moves through your yard. Aim for a location that gets at least six hours of direct sunlight daily to ensure your plants thrive.

• Start with Quality Soil

Healthy soil is the foundation of any successful garden. Invest in nutrient-rich, well-drained soil. If you're planting directly in the ground, mix it into the existing soil, or use specially formulated soil for raised beds. This ensures your plants have the right environment to grow strong.

• Try Container Gardening

Short on space? Consider container gardening. Many plants, including vegetables, herbs, and flowers, grow well in pots. Choose containers that are appropriately sized for your plants and fill them with a potting mix that maintains moisture balance to prevent over- or under-watering.

Finsum: Gardening can bring a wealth of benefits from your life, from fresh produce in your daily cooking to a healthy outdoor experience. 

Emerging-market stocks fell as new signs of economic trouble in China emerged, with trading volumes low due to the U.S. Labor Day holiday. The MSCI Emerging Markets Index slid 0.3%, driven by declines in Chinese giants like Alibaba and Tencent, despite gains in Taiwan Semiconductor. 

The drop followed data showing that Chinese factory activity contracted for the fourth month in a row, casting doubt on the country’s growth prospects for the year. Meanwhile, currency markets are bracing for potential U.S. interest rate cuts, with upcoming economic reports likely to shape the outlook. 

The Brazilian real weakened despite central bank interventions, amid rising fiscal concerns and political uncertainty in Latin America. In a related move, Hungary issued yen-denominated bonds, nearing its cap on foreign currency debt issuance.

Finsum: It will be critical to monitor exchange rates as the US begins letting rates fall, this could have a big impact on Ems

Investors are preparing for significant shifts as U.S. elections and potential rate cuts approach in late 2024. While many have established their core holdings, adding targeted investments could help capture emerging market opportunities. 

Dividend-focused strategies offer both additional income and insights into a company's growth outlook; robust dividends may signal confidence, while lower payouts could suggest caution. The T. Rowe Price Dividend Growth ETF (TDVG), for example, invests in stocks with strong financials and dividend growth potential, leveraging active management to achieve higher returns. 

Over the past year, TDVG has returned 17% and averages 13% annually since its 2020 inception, using a strategy that evaluates balance sheets, cash flow, and competitive positioning. 

Finsum: Investors looking to pick up equity exposure and income this fall should be eyeing up dividend ETFs.

Investors are increasingly flocking to US government bond ETFs as anticipation grows for a Federal Reserve interest rate cut in September. BlackRock's TLT, the largest ETF for long-dated Treasury bonds, saw nearly $4 billion in inflows from early August through Monday, marking one of its highest monthly inflows since inception. 

This surge indicates a resurgence in bond interest following a period of weak returns and significant outflows in 2022. As economic slowdowns push investors towards safer fixed-income options, bond yields have dropped in response to the Fed’s potential rate reductions. 

Retail and institutional investors alike are rediscovering bonds, with $12.2 billion flowing into US sovereign bond ETFs in August alone. The overall bond market's revival is evident, with taxable bond funds and ETFs attracting over $280 billion in the first seven months of the year, surpassing the total inflows for 2023.

Finsum: Holding bonds as interest rates fall and their prices rise sems to be one of the classic strategies that we haven’t been able to leverage on this scale in a long time.

Annuity sales surged in the second quarter, with traditional variable annuities reaching $16.5 billion, a 20% increase from the same period in 2023. Registered index-linked annuities (RILAs) led the growth, with a 45% rise in sales year-over-year. 

Overall, sales of all tracked annuity types climbed 31% to $110 billion. This uptick signifies a strong demand among retirement savers for insurers to manage some of their market risks. 

While variable annuities link returns to fund performance, RILAs often tie returns to investment indexes and are increasingly preferred by insurers due to easier administration and hedging. Recent SEC regulations may impact how RILAs are classified compared to traditional variable annuities.

Finsum: It’s important to monitor this ongoing classification of RILAs as this could have a significant impact on the industry.