Bonds: Total Market
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:
- Vanguard Target Retirement 2045 Fund Investor Shares (VTIVX) – Expense Ratio: 0.08%
- Fidelity Freedom Index 2045 Fund Investor Class (FIOFX) – Expense Ratio: 0.12%
- 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.
Deeper tax planning integration in wealth management can enhance advisors’ ability to deliver proactive tax strategies that go beyond traditional investment management. Tax planning has become a crucial differentiator in modern wealth management, with more investors seeking advisors who can optimize after-tax returns and long-term financial outcomes.
Strategies like Roth conversions, tax-loss harvesting, and asset location are now essential tools for high-net-worth clients navigating an increasingly complex tax landscape. With concerns about rising tax rates and policy risks, forward-looking tax planning is becoming indispensable for preserving and growing client wealth.
Advisors who incorporate these strategies can build deeper client relationships, attract more assets, and position themselves competitively in an evolving industry.
Finsum: Tax strategies help give advisors an edge when dealing with clients and helping them allocate to efficient portfolios.
JP Morgan Asset Management is gearing up to introduce its first private credit interval fund, aiming to expand its footprint in private credit. This newly registered credit markets fund, filed with the SEC, will be accessible to wealth market investors.
The fund plans to maintain a diversified portfolio that includes loans, bonds, structured finance securities, and other credit-related investments. Interval funds, like this one, provide access to private market assets with periodic liquidity windows, balancing stability with limited redemption opportunities.
To manage liquidity, a portion of assets will be allocated to short-term debt instruments, money market funds, and cash reserves.
FINSUM: As investor demand for private credit grows, asset managers are increasingly tailoring products to individual investors seeking diversification.
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Cryptocurrencies tumbled as concerns over a broader U.S. stock selloff overshadowed recent efforts by President Trump to support the industry. Bitcoin dropped more than 3% in early Asian trading, while Ether sank as much as 6% to its lowest level since October 2023 before recovering some losses.
The decline followed a sharp selloff in technology stocks, with the Nasdaq 100 plunging 3.8%, its worst session since October 2022. Despite Trump’s executive order to establish a U.S. Bitcoin reserve, investor sentiment remained fragile as macroeconomic risks took center stage.
Analysts noted that leveraged crypto-related ETFs were among the hardest hit, with some plunging more than 30% in a single day. While Bitcoin hovered around $79,300, traders were eyeing key support levels at $73,000 and $70,000, where stronger buying interest could emerge.
Finsum: While many think of crypto as hedge against market volatility, we need to remember that those hedges are a little effective on the currency side.
- Flame-cooked flavors are making a strong return as diners seek the rich, smoky depth that only open-fire cooking can provide. From Texas barbecue joints to London’s Brat and Kyoto’s La Bûche, chefs around the world are reviving traditional wood-fired techniques, creating dishes that capture the essence of rustic, high-heat cooking.
- Southeast Asian cuisine is also evolving, driven by chefs who have honed their craft abroad and are now returning home to reimagine their culinary heritage. Fine-dining establishments across Malaysia, Vietnam, and Singapore are blending time-honored recipes with innovative techniques and global flavors.
- China’s food scene is undergoing a renaissance, gaining long-overdue recognition on the global stage. In Beijing, chefs are reviving imperial-era recipes once reserved for emperors, offering a taste of history with meticulously recreated royal dishes. Meanwhile, Shanghai’s Hakkasan and Obscura are infusing classic Chinese flavors with contemporary influences, merging tradition with innovation.
Finsum: We have our eye out on these culinary trends and look forward to how a traditions are honored but innovation is evolving.
ETF issuers are continually innovating to meet the demand for buffer strategies, appealing to financial advisors and clients who prioritize downside protection, even if it limits potential gains. Often dubbed "boomer candy" for their popularity among retirees, buffered ETFs offer a sense of security akin to a safety net for nervous investors.
The market for these ETFs has grown exponentially, with over 200 options managing nearly $46 billion in assets, a significant leap from just $200 million in 2018. These strategies typically shield against initial market declines, like the first 10%, while capping upside returns and are often tied to indices like the S&P 500.
Variations now include funds offering complete downside protection or innovative approaches like Calamos Investments’ product, which protects bitcoin’s price, but caps gain at 10%.
Finsum: Investors looking for stability particularly as they are aging could benefit from these strategies.