Booming SPAC market draws SEC scrutiny: The vehicles are touted for democratizing markets by allowing retail investors access to high-growth companies, according to InvestmentNews. But the SEC said they come with distinct risks.
Two key tax things an adviser can do for clients this filing season: Roth conversions and backdoor Roths ease COVID financial pain for wealthy earners this tax season, according to FinancialPlanning.
Schwab report lays out best defined contribution strategies: The paper says professional help with retirement plans is crucial, according to Financial Advisor.
If 60/40 recipe sours, maybe stir in some bitcoin: With government bonds no longer offering a buffer against a drop in equities, investors will have to get more creative, according to Financial Advisor.
Reaching high-net-worth investors means funneling the right resources: In light of COVID-19, high-net-worth providers are relying on asset management partners more heavily for strategic solutions and capital markets guidance. However, since the pandemic, advisers and home offices have had an even tighter circle of asset managers with which they do business. Firms looking to grow their business need to understand that every engagement with a HNW practice is critical and requires distribution efforts to be more intentional and strategic, according to the latest Cerulli Edge — U.S. Asset and Wealth Management Edition.
Unlocking the benefits of reverse rollovers: Moving funds from an IRA to a 401(k) can help some clients avoid RMDs — or withdraw their money earlier, write Robert Bloink and William Byrnes.
Robo-advisory: Advances in financial technology have led to the development of easy-to-use online platforms referred to as robo-advisers or digital advisers, offering automated investment and portfolio management services to retail investors, according to the authors of this paper. By leveraging algorithms embodying well-established investment principles and the availability of exchange traded funds (ETFs) and liquid securities in different asset classes, robo-advisers automatically manage client portfolios that deliver similar or better investment performance at a lower cost as compared to traditional financial retail services.
Right Social Security claiming strategy key for women: Women need careful planning when it comes to claiming Social Security, writes Sophia Duffy, an assistant professor at the American College of Financial Services. Duffy offers tips for financial advisers dealing with women in different situations, such as those who are widowed, divorced or who never married, and those who have worked for fewer than 10 years.
Morningstar’s top-rated model portfolios: As model portfolios proliferate to meet adviser demand, the research firm is expanding its ratings, writes Bernice Napach. Also read Our Favorite Model Portfolios for Advisors.
For higher yield, consider emerging market debt: investors will find that a blend of emerging market dollar bonds from dozens of countries can help diversify their portfolios and improve their outcomes, writes Peter Marber, head of emerging markets at Aperture Investors LLC in New York.