Wealth Management
When evaluating an annuity, the advisor typically presents an illustration that outlines future values and any applicable surrender charges.
For a multi-year guaranteed annuity (MYGA), focusing solely on guaranteed values without much variability, except for potential market-value-adjustment penalties during the surrender period. On the other hand, a fixed indexed annuity features a more complex illustration, including guaranteed cash values and hypothetical future values based on favorable market performance. These annuities earn interest tied to changes in a market index like the S&P 500, offering the security of principal protection even if the index declines. However, the growth is limited, as you will only receive a portion of the index gains.
Understanding the specifics of these illustrations is vital, particularly distinguishing between the different types of value presented to clients.
Finsum: Annuities can be complex but understanding your client’s interest can put them in the perfect vehicle.
Dividend-paying ETFs offer a solid approach to generating passive income. The Schwab U.S. Dividend Equity ETF (SCHD) stands out for its robust American-made dividends and strong fundamentals.
The ProShares S&P 500 Dividend Aristocrats ETF (NOBL) provides stability with companies that have increased payouts for 25 consecutive years. The Vanguard High Dividend Yield ETF (VYM) combines high yields with broad risk distribution, tracking the FTSE High Dividend Yield Index.
These ETFs cater to investors seeking reliable income without the complexity of managing individual stocks. With their diverse portfolios, these funds help mitigate risk while ensuring steady dividend payouts. They represent a straightforward, efficient way to build a dependable income stream through dividends.
Finsum: Dividends are nice, but as we head into potential volatility maybe bonds are worth considering for income investors.
The state of television was in flux as writers and actors were on strike in 2023, but elevated television is in an incredible place. Here are the three best shows of the year so far:
- "House of the Dragon" is a must-watch for fans of the "Game of Thrones" universe, delivering rich storytelling and complex characters set in the politically charged world of Westeros. With stunning visuals and a gripping plot, this prequel dives deep into the history of House Targaryen, providing context and depth to the lore fans love.
- "Presumed Innocent," a legal drama based on Scott Turow's novel, captivates viewers with its intricate plot and intense courtroom scenes, exploring themes of justice, betrayal, and morality. The show's strong performances and clever twists make it a compelling watch for anyone who enjoys a good mystery.
- Lastly, "Ren Faire" offers a delightful escape into the whimsical world of Renaissance fairs, blending humor and heart. The series captures the unique culture and vibrant community of these events, making it both entertaining and endearing.
Finsum: We are seeing really interesting trends develop in the TV landscape and straight forward dramas like presumed innocent might be making a comeback.
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When financial advisors decide to change their broker-dealer, they often face the challenge of transitioning their clients smoothly. Many worry about the paperwork, duration, and impact on revenue.
Insights from advisors who transitioned to Osaic Wealth reveal that 75%-100% of clients typically move with them, and the process takes about 60-90 days, though some clients move later. Having dedicated support is crucial.
Proper preparation, clear client communication, and understanding new systems are key to a successful transition. Advisors also note that initial revenue may drop but generally stabilizes or increases within a year.
Finsum: Leveraging the new BD and technology can really aid in the transition.
Interval funds continue to gain popularity as investors become familiar with their benefits. New interval fund launches have increased since 2017, with 2024 on track for a record number.
Assets under management have grown 40% annually, reaching $80 billion by April 2024. These funds offer daily NAV pricing and subscription, but limit redemptions to quarterly intervals. This structure allows for investments in higher-return assets, better alignment of assets and liabilities, opportunistic buying, longer investment horizons for catalyst realization, and greater visibility of redemption requests.
Overall, interval funds combine traditional mutual fund features with unique advantages like a longer horizon allowing markets to less liquid investments.
Finsum: Interval funds offer a goldilocks like solution for certain investors.
As the MLB playoffs heat up, several teams are making significant strides towards the postseason. In the American League, the Baltimore Orioles and the New York Yankees are tied in their division, with strong performances bolstering their playoff aspirations. The Minnesota Twins and Cleveland Guardians are also in a solid position, holding a key spot in the AL Central.
Over in the National League, the Philadelphia Phillies and the Los Angeles Dodgers are dominant forces, both maintaining impressive records and positioning themselves well for deep playoff runs. The Milwaukee Brewers are not far behind, showcasing a balanced mix of pitching and offense that could make them formidable opponents.
Wildcard races are particularly intense this year, with teams like the Atlanta Braves and the San Diego Padres fighting hard to secure their postseason spots. Both teams have shown resilience, bouncing back from mid-season slumps to stay in contention.
Finsum: LA looks like the most secure place to catch the playoffs in 2024