Wealth Management
In early 2025, target date fund (TDF) investors experienced a setback as U.S. stock markets declined sharply, with a 12% year-to-date loss driven by tariffs and fears of a market correction. For years, diversification beyond U.S. equities hurt performance, but that trend reversed as global factors began to weigh on domestic markets.
The SMART TDF Index, which models ideal TDF allocations with better risk management, has outperformed the industry standard, revealing that most TDFs are overexposed to risky U.S. assets. April’s turbulence, sparked by the April 2 “Liberation Day” tariffs and further losses in the S&P 500, has intensified concerns about sequence-of-return risk, especially for those nearing retirement.
Despite historical lessons and available low-risk alternatives like the SMART Index and TSP, most TDFs remain unprepared for prolonged downturns.
Finsum: With fear dominating investor sentiment, now may be the time to rethink how TDFs protect retirement savers.
Morningstar’s latest Retirement Plan Landscape report finds that while the average cost of workplace retirement plans continues to decline, expenses still vary significantly—especially for those in smaller plans, who often pay nearly three times as much as participants in large plans.
These cost discrepancies stem largely from economies of scale, with larger employers able to spread administrative expenses more efficiently. Despite the variation in fees, most participants across plans have access to high-quality investments, with over 94% of defined-contribution assets allocated to Morningstar Medalist-rated options.
The report highlights that even small plans can be cost-effective, with 20% of them coming in below the median cost for medium-sized plans. However, more than $600 billion has exited workplace retirement plans annually since 2020, often due to rollovers into IRAs when employees change jobs.
Finsum: Investors should carefully weigh whether their workplace plan offers better value through low fees and strong investment options before making such moves.
With a sea of business books available, finding the right one can be overwhelming for entrepreneurs, which is why this curated 2025 reading list highlights the essential titles.
- Kathryn Finney’s “Build the Damn Thing” empowers underrepresented founders with practical strategies and an unapologetic call to action for claiming space in business.
- Andy Dunn’s “Burn Rate” offers a raw, introspective look at the mental health toll of scaling a startup, blending startup success with personal vulnerability.
- “Competing in the Age of AI” by Iansiti and Lakhani explores how AI is reshaping business operations and provides a roadmap for leaders ready to embrace algorithmic thinking.
- Brené Brown’s “Dare to Lead” shifts the leadership conversation toward courage, empathy, and authenticity, qualities vital for modern entrepreneurs.
Finsum: Whether navigating funding, scaling teams, or redefining leadership, these books offer timely insights for anyone building a business in 2025.
More...
After a record-setting 2024, Europe’s private equity market entered 2025 under pressure from geopolitical tensions, macroeconomic uncertainty, and waning investor confidence.
Deal activity declined notably in Q1, with total value dropping 24.6% and a sharp pivot toward smaller, strategic add-on deals indicating a defensive investment posture. Exit activity also slowed, with a 25.2% drop in exit count and extended holding periods, as firms waited out volatile public markets and weak valuation multiples.
Yet some regions, like the Nordics and DACH, outperformed thanks to local stability and stronger monetary frameworks. On the fundraising front, European PE firms raised €23.7 billion in Q1, with strong interest in mid-market vehicles and new entrants like Thoma Bravo signaling optimism.
Finsum: Despite near-term caution, the market showed resilience and adaptability, laying the groundwork for a more stable second half.
Retired financial advisors consistently report that thoughtful succession planning plays a major role in their retirement satisfaction, according to Raymond James surveys conducted since 2018.
One of the first key steps is identifying a successor early, whether through personal networks, firm support, or tech tools like Raymond James’ Practice Exchange. Once a successor is chosen, communicating the plan clearly and proactively to clients helps ease their concerns and ensures continuity in relationships.
Many advisors delay these conversations due to anxiety, but regular updates build trust and allow clients to transition comfortably. Another often overlooked element is preparing mentally for retirement—knowing how you'll spend your time, whether it’s mentoring, traveling, or simply relaxing.
Finsum: Ultimately, planning both the handoff and your post-career lifestyle is crucial to making your retirement both smooth and fulfilling.
Broadridge’s Fi360 has rolled out a new tool designed to help plan advisers and sponsors evaluate retirement income and stable value products with a more tailored, due-diligence-focused approach. The Retirement Product Evaluator, powered by CANNEX data, enables users to customize assessments across 60 criteria, allowing them to prioritize features based on the needs of a specific plan or participant base.
With interest in retirement income rising—90% of large institutional clients now rank it as a top plan design priority—the tool aims to meet growing demand for clarity and transparency in annuity evaluation.
Unlike mutual fund scoring tools, this evaluator avoids rigid scoring and instead invites a deeper, more nuanced analysis given the complexity of the products involved. While adoption of in-plan annuities remains low due to fiduciary and recordkeeping hurdles, Broadridge hopes its tool can demystify options and boost comfort levels among plan sponsors.
Finsum: Already in use by major firms, the evaluator reflects an industry shift toward equipping retirement plans with tools for both income generation and long-term stability.