WrapManager's Wealth Management Blog

Quizmaster, Doug Hutchinson, presents his quiz for the month. This time the topic is 401(k) diversification. Keep reading to find out if Gina is going down the right path with her strategy. [+] Read More

With half the year over, BlackRock's commentary delivers an overview for the rest of the year. Read the excerpt here, or download the full BlackRock Midyear 2016 Golobal Investment Outlook report. Markets are torn between anxiety over the fallout from the UK’s vote to exit the European Union and the prospect of a strengthening U.S. economy. Downside risks to global growth point to a U.S. Federal Reserve on hold — and reinforce our view of low global interest rates for long. Our key views: Outlook Forum: At a mid-June gathering of some 90 BlackRock portfolio managers and executives, we had vigorous debates on the outlook for a rebound in U.S. inflation, the prospect of a turnaround in beaten-down emerging markets (EMs) and the woes afflicting the global financial sector. Themes: We updated our three themes for this year: 1) We are living in a low-return world; 2) Monetary policy has been a key driver of asset prices — but its effectiveness looks to be waning; 3) We see more volatility ahead as Brexit-related anxiety weighs on Europe’s economy and the business cycle matures. Risks: We see geopolitical uncertainties and a renewed rise in the U.S. dollar as near-term risks, and populism as a medium-term challenge for trade, growth and markets. A potential surprise: a rally in risk assets prompted by investors shifting out of cash and low-yielding assets in search of higher returns. Markets: We have turned more positive on most fixed income due to elevated geopolitical risks and easy monetary policy in a low-growth world. We like income, including investment-grade credit and EM debt. We are cautious on equities, particularly in Europe, given the turn in risk sentiment and poor profit growth. We prefer dividend growers and quality companies. We like gold as a portfolio diversifier. To learn more about BlackRock and other Money Managers, give us a call at 1-800-541-7774 or contact us here to speak with one of WrapManager's Wealth Managers. Download Full Commmentary Here Get Free Research Reports about Blackrock Inc [+] Read More

Maybe! Recent research from Columbia Business School suggests that it’s possible. Researchers found that checking an investment or retirement portfolio too frequently could result in lower returns.* That’s because investors who are overly driven by day-to-day fluctuations will often feel more emotionally compelled to make changes, which may ultimately veer them off course. The study cited that investors making decisions too often may “rebalance their holdings to get out of stocks that are dropping and miss out when they go back up.” [+] Read More

Excerpt from the June 24, 2016 JP Morgan Market Bulletin. Click here to read the entire bulletin. [+] Read More

Cambiar Investors provides insights on the Brexit results. Their commentary can be read in full here. [+] Read More

Philip Orlando, CFA, from Federated Investors, shares his comments on Brexit. Read a section below from "Orlando's Outlook" or click here to read the entire commentary. Bottom Line In an extraordinary overnight development, the U.K. voted 52% to 48% to leave the European Union. Prime Minister David Cameron, who supported the Remain camp, immediately fell on his sword, announcing he will resign in October after a transition period to select a new [+] Read More

Allow us ‘cut to the chase’ on one thing when it comes to 401(k)s: they are almost always valuable tools for retirement planning, for those who can access them. 401(k)s have been bedrocks of retirement planning for a long time and could remain so for years to come.(Click here to get the ebook, 5 Ways to Enhance Your Retirement Planning Strategy). If you’re working and have access to one, do everything you can to max it out and invest it according to your risk tolerance and long-term objectives. It’s hard to imagine regretting that type of planning. [+] Read More

At least we hope it’s a never ending story. About two years ago, we wrote an article about the government potentially ending the Stretch IRA. Back then, there was a proposal being floated that would require non-spousal beneficiaries to receive and pay taxes on IRA distributions within five years of the IRA owner’s passing. The law never materialized, and Stretch IRAs are still a great potential tool for preserving wealth over generations. But here we are two years later, and the proposal is back again—this time as part of the 2017 White House budget. The administration is seeking to accomplish the same thing it couldn’t accomplish back in 2014, to “require non-spouse beneficiaries of deceased IRA owners and retirement plan participants to take inherited distributions over no more than five years.” In layman’s terms, it means that if you inherit an IRA from someone you weren’t married to, you have to distribute all of the funds within a 5-year period, and possibly be responsible for all the associated taxes. Today, a non-spouse person that inherits an IRA can “stretch” out their distributions over a lifetime, in hopes of reaping the long-term growth benefits of a tax-deferred IRA. In the proposed law’s defense, IRAs were never designed to be “legacy” accounts – they were designed to give people the opportunity to save for retirement in a tax advantaged way, and then use that money for retirement. Once the retiree passes away, the tax break should theoretically end – and the concept of a Stretch IRA runs counter to that. As long as it remains on the table, however, investors who have inherited an IRA would be wise to consider it as part of their investment plan. It’s difficult to argue against leaving assets in a tax deferred growth account for as long as possible. [+] Read More

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