WrapManager's Wealth Management Blog

Although the US is arguably the largest and most diverse economy in the world, international diversification, where appropriate, might be to able help reduce the overall risk in your portfolio by investing non-correlated assets. While diversification does not guarantee profit or protect against loss in declining markets, international investing can be an important component of a well-diversified portfolio. [+] Read More

Long on Short Bonds... The steady increase in shorter-maturity bond yields provides a thicker cushion against concerns around further rises in interest rates. Interest rates would need to jump more than one percentage point to wipe out a year of income in the two-year Treasury note. This is nearly double the cushion on offer two years ago – and far larger than the thin insulation provided by longer-term bonds today. We believe the short end offers relatively compelling income along with a healthy buffer against the prospects of further increases in yields. Read an excerpt of BlackRock's commentary below, or download the complete commentary now. [+] Read More

If your financial advisor insisted on creating an investment plan that projected you and/or your spouse to live past 100, you might be skeptical. Few people at or near retirement expect to live to be 100. But retirees would be wise to start thinking that way! The Social Security Administration finds about one out of every four 65-year-olds today will live past age 90, and one out of 10 will live past age 95. There’s also a 4% chance one person in a couple will live past 100. That’s a low percentage, sure. But it is still a possibility very much worth planning for. [+] Read More

Brookmont Capital Management has been awarded a Top Guns designation by Informa Investment Solutions’ PSN manager database, North America’s longest-running database of investment managers. The Brookmont Dividend Equity Strategy was ranked as the #1 US Large-Cap Value Manager, #3 US Large-Cap Manager, and #5 US Equity Manager for the 10-year performance of the Dividend Equity Strategy. Learn more about the announcement, along with the measurement criteria used to determine the ranking, below or download the complete announcement as a PDF. [+] Read More

Target date funds have been around for over 20 years, but over the last several years they have seemingly become a mainstay of 401(k) plans. For novice investors and those just starting out, the ‘target date’ feature of choosing a retirement date and “setting and forgetting” an investment strategy has understandable appeal. But for investors with larger amounts of assets under management and more complex financial situations and retirement needs, target date funds may not do the trick. Below we’ll explore some of the positive features and drawbacks of target date funds. [+] Read More

Stocks recover ground as the focus returns to fundamentals... Stocks rebounded last week as investors appeared to return their focus to improving economic growth and solid corporate earnings. The S&P 500 Index jumped 4.4% and experienced its best week in more than five years. While stocks remain down for the month, they are back in positive territory for the year. Volatility also declined last week as markets calmed down slightly. Treasury yields rose last week as the yield curve flattened. At one point, the 10-year Treasury yield climbed to 2.94% before declining. While we may see further market volatility, it appears the worst of the recent correction is in the rear view mirror Read a summary of Nuveen Asset Management's weekly market review below, or download the entire investment commentary as a PDF. [+] Read More

In the context of retirement planning, most people are naturally drawn to talking about travel, hobbies, grandchildren, and leisure activities. And for good reason – that’s what retirement is supposed to be all about! There is a necessary distinction between retirement and retirement planning, however. Planning must go beyond the ‘fun’ items and consider all expenses we may incur over time and throughout life. One of those expenses – and a major one – is the cost of health and home care later in life. [+] Read More

Money Managers continue to reflect on the market volatility from last week, lessons learned, and consider what's to come. This week's post is another compilation of articles from three different money managers. Lord Abbett's day-by-day recap of last week's market ups and downs. Senior Portfolio Manager Bob Doll shares Nuveen's outlook on market volatility and other factors investors should consider, while Federated Investors focuses in on dividend investing in 2018. Lord Abbett and Company Nuveen Asset Management Federated Investors [+] Read More

What Happens to Bond Investments When Interest Rates Go Up? Consider this scenario: Your friend Bob is concerned about what rising interest rates could do to his bond portfolio. He asks for your assistance in evaluating his bond holdings. In his current bond portfolio, he has the following holdings: $10,000 face value AA rated municipal bond that matures in 3 months and is currently trading slightly below par. $15,000 of a mutual fund that holds investment grade, floating rate bonds. $20,000 of a short-term, investment grade corporate bond ETF which tracks a broad index of hundreds of bonds. $3,000 of a high yield bond ETF that tracks a high yield index of hundreds of bonds. Bob has a long investment horizon ahead of him and he won’t need any of the funds invested in his bond portfolio for many years. To top it off, Bob also has another $100,000 of his portfolio invested in various equity market investments. [+] Read More