All articles tagged with #asset allocation
Rick Rieder, a potential future Fed chief, advocates for adding gold and Bitcoin to investment portfolios, citing gold as a hedge against a declining dollar and Bitcoin as a promising asset, especially if he becomes Fed chair, which could lead to a more crypto-friendly monetary policy and lower interest rates.
A retiree with a substantial pension and investment portfolio is considering whether to claim Social Security at Full Retirement Age (FRA) or delay until age 70 to increase benefits. The retiree is in a strong financial position with no debt and a healthy income from part-time work. A break-even analysis suggests it would take 12.5 years to recoup the benefits if delayed until 70. Factors to consider include the guaranteed nature of Social Security as inflation-protected income, potential survivor benefits for the spouse, and the growth of retirement accounts if untouched. The retiree is advised to explore various retirement income scenarios, consider tax implications, and possibly adjust asset allocation to balance growth and risk, potentially with the help of a financial planner.
Family offices, the private investing arms of wealthy families, are shifting their investments out of public stocks and into private markets, according to a survey by Campden Wealth and RBC. The survey found that family offices now have more of their money invested in private equity, venture capital, and private debt (29.2%) than in publicly traded stocks (28.5%). This marks the first time in the survey's history that family offices have allocated more to private markets than public stocks. The survey also revealed that family offices plan to further increase their allocations to private markets, with a focus on private equity funds and direct private equity deals. This shift reflects a broader trend among family offices seeking better long-term returns and reduced volatility compared to stocks.
With the 10-year treasury yield now trading above 4%, surpassing the dividend benchmark of approximately 3.6% expected from investing in Schwab U.S. Dividend Equity ETF (SCHD), investors are being advised to consider moving their assets from dividend stocks to treasuries. The argument is that treasuries offer a higher yield and lower risk compared to dividend stocks, especially in the current market environment where interest rates are trending around 5%. The article suggests that cyclical businesses, which form a significant part of SCHD's investment strategy, may not deserve an implied growth premium as the Federal Reserve aims to cool the economy. Therefore, the author advises selling dividend portfolios/ETFs and buying treasuries instead.
The article highlights the 10 best income plays for the second half of 2023, emphasizing that the stock market rally may just be getting started for those seeking income. It discusses the importance of dividends and asset allocation in generating income and provides insights for investors looking to capitalize on income opportunities in the coming months.