If an investor chooses a non-human financial advisor, what price could they end up paying?
Provided by Reeve Conover, Conover Consulting
Investors have a choice today that they did not have a decade ago. They can seek investing and retirement planning guidance from a human financial advisor or put their invested assets in the hands of a robo-advisor – a software program that maintains their portfolio.
Investors in longer-term Treasuries could really be punished.
Are bond investors facing the possibility of major losses? Recently, bond yields have climbed. From November 1-23, the 2-year Treasury yield went from 0.83% to 1.12%, while the yield on the 10-year note rose from 1.83% to 2.36%.1
Quality bonds have a place in a portfolio, but many investors are moving their money elsewhere. They see a federal stimulus ahead in 2017, one that could potentially strengthen the economy and lead the Federal Reserve to gradually tighten interest rates. Assuming that happens and appetite for risk remains strong, what will happen to bonds and bond funds when rates begin to climb?1,2,3
A new fiduciary rule could potentially reduce the number of such advisors.
Today, many people claim to offer retirement planning. In the near future, their ranks may thin because of new regulations on qualified retirement plans being phased in by the Department of Labor.
Things are changing quickly. By the start of 2018, any person or firm providing advice to IRA owners and participants in workplace retirement plans will be asked to assume a fiduciary responsibility. In taking on that responsibility, that person or firm will have an ethical and legal duty to act in a client’s best interest.1
Simple decisions & new habits might lead you toward a better financial future.
In life, there are times when simple decisions can have a profound impact. The same holds true when it comes to personal finance. Here are some simple choices you could make that may leave you better off financially – in the near term, the long term, or both.
What has changed for you in 2016? Did you start a new job or leave a job behind? Did you retire? Did you start a family? If notable changes occurred in your personal or professional life, then you will want to review your finances before this year ends and 2017 begins.
Even if your 2016 has been relatively uneventful, the end of the year is still a good time to get cracking and see where you can plan to save some taxes and/or build a little more wealth.