Wealth Management
Annuities in IRAs can provide surprising benefits for required minimum distributions (RMDs), particularly with fixed index annuities (FIAs) or variable annuities (VAs).
While annuities often draw criticism for fees and opaque structures, they can sometimes be the best tool for specific retirement planning needs. FIAs, despite their bond-like returns with added stock beta, can offer secure lifetime income to meet critical retirement cash flow needs.
When paired with goals-based planning, annuities excel in providing inflation-hedged, lifetime income that’s challenging to replicate with other investments. For flexible retirement expenses and longevity protection, the mortality pooling aspect of annuities often delivers payouts surpassing self-built solutions.
Finsum: While not without flaws, annuities can play a crucial role in comprehensive retirement planning strategies.
Switching to a new broker-dealer is a pivotal decision for financial advisors, impacting both their practice and long-term growth. Many advisors consider changing broker-dealers when their current firm no longer aligns with their goals or business model.
Key factors to evaluate include payout structures, which balance competitive earnings with robust support services, and the technology suite offered for streamlining operations and client engagement.
Advisors should also assess portfolio management flexibility, ensuring alignment with their investment strategies, and compliance support to navigate regulatory requirements. Transition resources, such as a dedicated team to assist with onboarding, can help minimize disruptions during the switch.
Finsum: Don’t forget cultural alignment and long-term growth opportunities in the transition.
Actively managed ETFs combine the flexibility of active management with the tax efficiency of ETFs, making them a compelling option for taxable portfolios. Unlike mutual funds, ETFs often use in-kind redemptions to minimize taxable capital gains, helping investors defer taxes and achieve greater compounded returns over time.
While tax efficiency is a significant advantage, investors should also evaluate the manager’s skill, market opportunities, and the cost-effectiveness of these strategies when selecting active ETFs.
Incorporating active ETFs into a portfolio can be a strategic way to balance the potential for alpha with reduced tax drag, particularly in equity strategies where minimizing distributions is key.
Finsum: A thoughtful approach to selecting active ETFs can enhance after-tax returns and align portfolios with long-term investment goals.
More...
Value investing has long been a cornerstone strategy for successful investors, offering opportunities to buy undervalued stocks poised for long-term growth. While value stocks lagged behind growth stocks during the era of low interest rates, they staged a notable comeback in 2022 before once again underperforming in 2023.
For those seeking to capitalize on value opportunities, ETFs like Vanguard Value ETF (VTV) or iShares Russell 1000 Value ETF (IWD) offer broad exposure to undervalued companies at a low cost. Smaller-cap-focused options, such as the Vanguard Small-Cap Value ETF (VBR), provide diversification with higher growth potential.
ETFs focused on high dividends, like the Fidelity High Dividend ETF (FDVV), also combine value strategies with consistent income streams.
Finsum: Investing in value ETFs, you can diversify your portfolio and tap into opportunities across industries without extensive research required.
In 2025, monetizing your hobbies can lead to both personal fulfillment and financial success. Many Millennials find passion-driven side hustles particularly rewarding.
- If you’re a collector, for example, curating rare or vintage items and selling them on platforms like Etsy or eBay can be lucrative, especially when coupled with content creation to engage potential buyers.
- Travel enthusiasts can turn their adventures into income by sharing travel blogs, selling breathtaking photos, or offering bespoke travel planning services.
- Similarly, artistic pursuits provide endless opportunities, such as selling digital art, creating craft subscription boxes, or offering tutorials and courses online.
By focusing on a niche that excites you and aligns with market demand, you can craft a career that combines passion and purpose.
Finsum: While hobbies can just be hobbies, finding ways that they can remain more revenue neutral can make indulging in them much easier.
BondBloxx has introduced the PCMM ETF, the first of its kind to provide direct access to private credit markets through collateralized loan obligations (CLOs). This ETF focuses on middle-market companies, a $5 trillion subset of the $30 trillion private credit market, offering diversification for fixed-income portfolios.
Private credit, characterized by short durations and low correlations to equities, provides resilience against Federal Reserve policy shifts. The fund, which invests 80% of its assets in private credit CLOs, delivers current yields around 7% and charges a 68-basis-point fee.
PCMM is positioned as a liquid, transparent, and cost-effective alternative to traditional private credit vehicles like interval funds. BondBloxx envisions this ETF as a key tool for financial advisors seeking enhanced returns and diversification in their clients’ portfolios.
Finsum: This is another perfect example of ETFs making alternatives or more complicated assets easier for clients.