Do the terms “upward sloping equity glide paths” and “bond tents” seem unfamiliar to you? They are terms that financial planning researchers are using to describe investment strategies designed to mitigate “sequence risk,” the risk that your portfolio returns will occur in the wrong order, thereby negatively impacting the amount of income your retirement account will generate. Pinnacle’s Director of Wealth Management, Michael Kitces, writes an interesting article on the subject in this month’s OnWallStreet, titled, “Avoid the Retirement Danger Zone.” (You can read the article by clicking here.) Since most Pinnacle clients fall in the age range of 50 to 70, where pre-retirement and early post-retirement risk is the highest, and since the recent election has clients questioning recent portfolio volatility (in this case, to the upside), it seems a good time to revisit the question of whether active portfolio management still makes sense.Details
Investment News has just named Pinnacle Wealth Manager and Partner Deb Kriebel to its 2016 Women to Watch list. The list is comprised of… …female financial advisers and industry executives who are distinguished leaders at their firms. These women have advanced the business of providing advice through their leadership, passion, creativity and willingness to help…Details
The main reason people renounce their U.S. citizenship is to take advantage of lower tax burdens abroad, but the growing unease with U.S. politics might also be contributing to a record number of Americans who are renouncing their citizenship and surrendering their passports. While we don’t recommend this to our clients, we have received questions about the financial pros and cons of leaving behind one’s U.S. citizenship. In the interest of keeping you fully informed, we sat down with Raoul Rodriguez, a Pinnacle Wealth Manager and resident expert on expatriate issues, to discuss the question.Details
The third quarter was a fairly placid one for investors, though there was major diversity in return profiles depending on what asset class, sector, or country one was invested in. In the U.S., the leading sector was clearly technology stocks, while elsewhere, Japan, Emerging Markets, and European stocks also had positive returns for the quarter. Within fixed income, the broad bond market indices slowed down and posted flat returns, though credit related sectors performed well along with other risk assets. Commodities brought up the rear in the third quarter, as they cooled off from their torrid run in the first half of the year. Summing it up, returns by asset class were mixed, but most investors in globally diversified portfolios enjoyed modest gains during the period.
With the third quarter in the books, the focus now turns to assessing prospects for the fourth quarter and beyond.Details
On September 19, 2016, S&P Dow Jones and MSCI, Inc. added a sector for Real Estate. Up to this point, REITs have traditionally been considered a sub-industry and part of the Financial sector, but as of the market close on August 31, 2016 (and effective September 19, 2016), they were split from the Financial sector and moved to their own sector (with the exception of Mortgage REITs). This should not be a surprise for investors, as the change had been announced by index providers, S&P Dow Jones Indices and MSCI, back in March 2015.Details
Pinnacle Wealth Managers help clients at every stage of life—from youth to retirement. Earlier this summer, we asked our Wealth Managers what financial advice they would give a recent graduate. This week, we’ve asked them to offer one piece of general life advice—what do they wish they’d been told when they were young?
Here are their responses.Details
After a tumultuous first quarter, the second quarter brought some relief as most assets were able to rebound to varying degrees. From a big picture perspective, U.S. stocks have been oscillating in a wide range that dates back to the fourth quarter of 2014. In other words, for the last year and a half, stocks have made almost no upside progress, while being subjected to several brief but vicious selloffs. This type of choppy, sideways action is frustrating for both bulls and bears as long as stocks remain within the current range. Global stocks are in a much more precarious state, with only modest recoveries that left many markets still well below their highs of a year ago (or longer).Details