A Morningstar report found that funds with the lowest sustainability rating had a growth rate 3.7% lower than expected, while those with the highest rating grew about 1.4% more than expected. "This indicates investors strongly avoid funds that are rated poorly from a sustainability perspective and do so more strongly than they are dawn to funds that are rated more highly," Morningstar analysts noted.
Wealth counselor Casey Robinson discusses some of the limitations of 529 college-savings plans and offers some alternative savings vehicles to consider. These include a custodial account, a Roth individual retirement account and cash value life insurance.
An analysis from Fidelity Investments finds that employer-sponsored retirement plan balances rose 6% year over year in the second quarter, while balances in individual retirement accounts rose nearly 7%. Yet, many people are still concerned about having enough for retirement, with a separate survey showing about half of people ages 45 to 65 with a significant retirement account balance saying they feel behind on their savings.
A survey by Bankrate found that Americans' biggest financial worry is saving for retirement. People ages 38 to 63 -- young baby boomers and Gen Xers -- are most likely to report such stress, the survey found.
People approaching retirement have a right to be concerned about how they might ride out a market downturn, and annuities are one way to do so, writes Zach Parker of Securities America. "Annuity options with guaranteed minimum withdrawal benefits may be worthwhile for clients concerned about future market volatility," he writes.
Advisors must be prepared to answer questions on cryptocurrencies, especially for high-net-worth individuals, writes Stephane De Baets of Elevated Returns. De Baets offers information for advisors on understanding the "murky waters" of coin exchanges.
Status quo bias and overconfidence may be two reasons financial advisors do not follow their own advice for their own planning, says Financial Planning associate editor Amanda Schiavo. "Advisors owe it to themselves, their firms and their clients to build a career track for the next generation of advisors," consultant Matt Sonnen notes.
The US SIF Foundation has released a guide on how financial planners can incorporate and improve sustainable, responsible and impact investing for their clients. The guide states that money managers should establish senior-level oversight to environmental, social and governance issues, as well as pinpoint resources for ESG data, research and training.
A life estate deed ensures a life tenant will never be forced to leave his or her home by a remainderman or heir, writes certified financial planner Harvey Bezozi. A life estate deed also could provide future rental income and allows for an immediate transfer of ownership without probate, notes Bezozi.