Hints and tips:
...Last month California-based Franklin Templeton agreed to buy rival Putnam Investments for more than $1bn as the asset manager continues its expansion into alternative products and retirement plans....
...Franklin had also added some retirement sales muscle from Putnam, he said. “[W]hen we took folks in from Putnam, one of the areas where we added most significantly . . ....
...To be confident their pension money will last through retirement, a saver has conventionally been told to limit withdrawals to 3-4 per cent of the value of the fund each year....
...Funds with closer retirement dates lost more than those with longer horizons....
...“Some others may simply be taking a more balanced approach to their investments rather than focusing on income alone, and it is of course possible to create an artificial income from growth funds by encashing...
...“The Vanguard Wellington fund goes back to 1929, and one of the reasons that product [has] survived . . . is because it was a balanced, diversified portfolio,” says Rodney Comegys, who heads Vanguard’s equity...
...The acquisition of Boston-based Putnam will add another $136bn in assets under management, 30 per cent of which are in retirement plans....
...For example, for a balanced fund over 10 years, the super fund median result is 6 per cent, according to the SuperGuide....
...And you typically see them used in retirement portfolios....
...Analysts seem . . . okay with the Putnam deal, which will give Franklin more scale in retirement and insurance....
...If you include this group in the so-called Russell 1000 index that is often used for mutual funds, it rose by 23 per cent in 2023....
...they are more balanced and able to get better returns.”...
...When inflation rises, US pensioners managing their own retirement funds have been among the buyers, says Edelsten....
...Franklin Templeton has agreed to buy rival Putnam Investments for more than $1bn as the California-based asset manager continues its expansion into alternative products and retirement plans....
...The world of work What’s the best way to enjoy your retirement? Get some tips from the new Working It podcast....
...“With gilts yielding around 4.5 per cent, people with 20 or 30 years of retirement left need a sizeable engine in the car to try and protect the real value of their capital....
...Shackell’s day job as a financial planner is combined with his YouTube channel, which generates ad income and has around 84,000 subscribers, and includes videos of him explaining index funds and retirement...
...However, the average balanced pension fund was down by just over 11 per cent this year, according to FE Analytics, a research group....
...But that has had to be balanced with the tendency of these countries’ annual growth rates to slow as they became richer....
...I have no retirement plan… This is my retirement plan! I’ll still be here, in my squeaky chair, going, ‘I’ve got no plans!’” She punctuates this with a raucous laugh....
...on the NHS, balanced against the financial cost of being treated more quickly by a private provider.”...
...Funds can offer a more balanced approach. Automating a regular monthly investment into a plain old global equities index fund might sound boring — but boring can be good....
...This will have less of an effect on younger investors, whose money will be locked up for decades to come, than on older workers approaching retirement, who can flexibly access their funds....
...While few pension funds follow the 60/40 model exactly, many have also used the balanced approach that underpins it to try and manage their risks....
...Bank managers in effect serve two masters — the board/shareholders and the FDIC insurance fund and its backer, the US Treasury — so bank executive bonuses and director compensation should be based on balanced...
International Edition