Retirement Planning: Solving for the Major Risks in Retirement

Whitepaper from REAP Strategist, Horizon Investments

ABSTRACT

Generating income throughout retirement is increasingly the focus of financial advisors and institutions. The shift in focus is due to an aging population and a three-decade-long bull market for bonds that is expected to end. This paper examines different potential asset allocation strategies in the context of retirement spending. Specifically, we want to understand how longevity risk (outliving…

Maximum Drawdown: A New Approach to Managing Investment Risk

Whitepaper from REAP Strategist, Horizon Investments

Ever since Modern Portfolio Theory (MPT) was introduced in 1952, the answer to the question of how investment risk should be measured and managed has largely been codified as volatility or standard deviation. MPT is a framework that, in theory, allows an investor to maximize return for a given level of risk, defined in the MPT framework as…

Redefining Risk: The Revolution Coming to Financial Services

Whitepaper from REAP Strategist, Horizon Investments

EXECUTIVE SUMMARY

As a goals-based investment manager, we believe investment problems and challenges are best addressed in the context of an investor’s goals—the purpose behind their investment programs. By aligning investment solutions with investor goals, investors have a better opportunity to measure the actual “real world” outcomes they seek. Each investment-related goal consists of three stages—accumulation (or the Gain…

Actively vs. Passively Managed Funds Performance

From: www.morningstar.com

4 key takeaways from Morningstar’s U.S. Active/Passive Barometer

The Morningstar Active/Passive Barometer is a semiannual report that measures the performance of actively versus passively managed funds within their respective Morningstar Categories. The barometer is unique in the way it measures active managers’ success relative to the actual, net-of-fee performance of passive funds rather than an index, which isn’t investable.

We…

Diversified Municipal Bond Model

By Ocean Park Asset Management

The Ocean Park Diversified Municipal Bond Model seeks to produce satisfying long-term returns while limiting downside risk. Returns are created from interest income as well as increases in bond prices. The interest income from municipal bonds is tax-exempt at the federal level, providing a valuable benefit for clients in relatively high income tax brackets. The Model diversifies a client’s account directly and indirectly among a…

Should you take a goal-based financial approach?

From: REAP, LLC. | Retirement & Estate Advisors & Professionals

Have you heard of goal-based investing?

This mindset simply involves saving and investing for a particular purpose. You might also call this a SMART approach: specific, measurable, achievable, relevant and time-bound.

Regardless of your investing activities, reviewing your finances and establishing clear goals (along with a plan to reach them) can be a helpful activity for…

The Morningstar Mirage

From: www.wsj.com

Investors everywhere think a 5-star rating from Morningstar means a mutual fund will be a top performer—it doesn’t

Millions of people trust Morningstar Inc. to help them decide where to put their money.

From pension funds to endowments to financial advisers to individuals, investors rely on Morningstar’s star ratings to help divide $16 trillion among America’s mutual funds, in much the way shoppers use Amazon’s ratings…

Do you know about good debt?

From: REAP, LLC. | Retirement & Estate Advisors & Professionals

Is all debt bad? Not necessarily. Strategic spending can often work out well in the long run, even if this means temporarily racking up loan balances. However, it’s important to plan carefully to make sure you’re making wise choices. 

Here’s what to keep in mind as you consider different forms of debt. 

4 Tips to Optimize Your Retirement Account Withdrawals (And Reduce Taxes)

From: smartasset.com

This is how to make sure your savings lasts the longest.

If you’re planning to retire within the next few years, you’ve undoubtedly considered when you should start making withdrawals from your retirement accounts.

However, the order in which you withdraw from your accounts is also important — it could let your tax-advantaged accounts grow to their full potential,