With stocks falling precipitously, inflation soaring, and interest rates on the rise, it’s a nervous time for investors—retirees in particular. But smart advisors offer a number of steps that can help retired clients preserve their wealth, even in these choppy markets. Steps include frequent portfolio rebalancing, diversifying, and taking the opportunity to buy the dip.
In other most-read wealth management articles this week:
Hope for growth stocks? Tech and growth stocks have taken a beating this year. Many investors are wondering whether this is a buying opportunity ahead of a rebound or whether these stocks are settling into a new era of stable but lower valuations. We put the question to several advisors, who recommend going shopping for proven, quality companies or boosting holdings that pay dividends. However, some advisors suggest staying on the sidelines and remaining patient until a market bottom forms.
Student debt forgiveness back in play. As federal student loan debt continues to rise, the Biden administration is formulating a policy approach that will call for forgiveness of some money owed, although it has yet to decide on a dollar amount and may implement means testing. The latest push follows relief the administration has already extended to more than 750,000 borrowers and an extension to the payment pause put in place in 2020. Whatever the final policy looks like, it won’t be enough to wipe out many borrowers’ entire debt load .
Out of prison but not out of the woods. A former advisor with Merrill Lynch who was released from prison in January for a long-running fraud was handed another setback at an arbitration proceeding, where he was held liable for more than $7.5 million in damages and fines. Thomas Buck, whose attorney did not rule out an appeal, was formerly a top-producing advisor who appeared on Barron’s ranking lists, and had been serving a 40-month prison sentence for a scheme involving excessive trading.
Goldman Sachs names new advisor head. In the latest signal that it’s getting serious about the high-net-worth wealth management space, Goldman Sachs has tapped company veteran David Fox to lead the advisors at Personal Financial Management. That’s the registered investment advisor formerly known as United Capital. Fox’s team is focused on providing holistic financial planning services to clients with investible assets in the $1 million to $10 million range. The division has 100 offices spread around the country with more on the way.
Remember: Time is on your side. Plunging markets paired with rising interest rates and souring inflation have been a shock for many younger investors. Nevertheless, advisors recommend younger clients remain invested in the markets but implement some tactical changes to improve their returns.
In this week’s Q&A, we speak with Kurt Miscinski, who founded Cerity Partners in 2006 with the goal of following a professional services partnership model, much like a law firm or an accounting firm. The New York-based RIA firm now manages nearly $45 billion of assets. Miscinski also talks about seeing the light on digital marketing, and explains why he feels private investments still hold allure.
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