Core Insights - The study highlights the importance of tax planning and preparation as key growth elements for advisory practices, particularly for early-career advisors facing challenges in organic growth [1] - Asset location strategies are shown to significantly enhance portfolio longevity and legacy value without increasing risk, benefiting clients over time [3][9] - The research indicates that asset location can contribute up to 60 basis points of the approximately 300 basis points in higher net returns attributed to advisors' value [5] Group 1: Asset Location and Its Benefits - Tax-deferred traditional individual retirement accounts (IRAs) held over $12 trillion in assets at the end of 2024, significantly surpassing post-tax Roth IRAs [2] - A saver with $1 million at retirement can see an increase in value of $112,000 in their final bequest through effective asset location strategies over 30 years [3] - Implementing asset location is shown to preserve portfolio longevity, with a near 100% success probability in extending withdrawal periods [9] Group 2: Advisor Value Proposition - Advisors need to demonstrate the value of their services compared to digital tools and DIY options, leveraging research findings to support their case [4] - The effective management of risks throughout a client's financial journey is crucial for value creation, emphasizing the multifaceted role of advisors [7] - Ignoring asset location represents a missed opportunity for managed account service providers, as it should be integrated into every retirement solution [10]

Economic Outlook - The consensus in the market suggests that next year will see robust economic growth, supported by fiscal and monetary tailwinds, as well as deregulation [7] - Clarity around trade policy and a government focused on economic performance ahead of midterm elections may reduce the need for significant Federal Reserve rate cuts [7] Inflation Trends - Current inflation data is viewed with skepticism, and there is an expectation of a higher inflation number in the next report due in mid-January [4] - Despite concerns, there is a belief that the pace of inflation is moderating, indicating a disinflationary trend [4] Federal Reserve Policy - The Federal Reserve's approach to interest rates will depend on economic growth and inflation rates, with modest rate cuts possible if labor market softness is observed [8] - The Fed is unlikely to make drastic changes unless there is significant evidence of economic downturns, particularly in small businesses, which have not been hiring [8][9] Small Business Impact - Small businesses, which account for 46% of employment in the U.S., are a key area to monitor for hiring trends and overall economic health [9] - The NFIB small business sentiment survey will be an important indicator; stabilization and improvement in hiring from small companies could signal a bullish market outlook [10]

With the skepticism surrounding the inflation data, what should you do with your money. Do you go all in on stocks. Do you proceed with some more caution.Let's ask Rebecca Patterson, independent director at Vanguard and the former chief investment strategist at Bridgewwater. Great to see you first of all. >> Good to see you.>> Do do you I hate to put it quite this way. Do you care about the the vagaries of whether this report is reliable or not. Can you can you wait it out.Do you look to the market reaction ...

Core Insights - Vanguard is introducing a new retirement savings option in collaboration with TIAA, aimed at simplifying income generation from retirement accounts for participants in its 401(k) plans starting next year [1][2]. Group 1: Product Overview - The new offering is an investment product modeled on target-date funds, which includes an embedded annuity, allowing participants to annuitize a portion of their portfolio at retirement without dealing with complex annuities or commissions [2][4]. - Participants will be enrolled in a Target Retirement Lifetime Income Trust, which operates like a typical target-date fund, based on an expected retirement age of 65 [5][6]. Group 2: Investment Strategy - The investment strategy involves selecting a mutual fund based on the desired retirement year, with the fund manager adjusting the investment mix between stocks and bonds as the target date approaches [6]. - At age 55, a portion of fixed-income savings will be shifted to a TIAA secure income account, reaching 25% of the account by age 65, with the option to convert this portion into a guaranteed paycheck [7]. Group 3: Flexibility and Options - Similar to other defined-contribution plans, participants can leave their funds in the plan, roll them over to an IRA, or cash out if they change jobs or are laid off [8].

Group 1 - The rise of artificial intelligence (AI) stocks has significantly inflated the value of the S&P 500, leading to concerns about the index's traditional safety due to its heavy tech weighting [1] - Alternative investment options include exchange-traded funds (ETFs) that offer diversification while minimizing tech exposure, such as the Vanguard High Dividend Yield Index Fund ETF, Invesco S&P 500 Revenue ETF, and State Street Consumer Staples Select Sector SPDR ETF [2] Group 2 - The Vanguard High Dividend Yield Index Fund ETF offers a high dividend yield of 2.4%, which is more than double the S&P 500 average of 1.1%, and holds 566 stocks for excellent diversification [4][5] - The Invesco S&P 500 Revenue ETF tracks the S&P 500 based on revenue rather than market cap, resulting in a portfolio with limited tech exposure, where healthcare is the largest sector at 21% [7][9]

As 2025 comes to an end, the economy seems stable, the S&P 500 is up more than 15% so far this year, and inflation is relatively tame. Yet Americans have the kind of gloomy views about inflation, politics, and the job market that are normally only seen during recessions. It’s a good reminder that there can be a disconnect between the big picture and individual American wallets. But with most strategists forecasting more of the same for 2026, it’s also an opportunity to dig into the large-scale drivers of ...

Core Insights - Vanguard Total International Stock Index Fund ETF Shares (VXUS) delivered a 29% return through mid-December 2025, outperforming the S&P 500's 15% gain, highlighting the potential of international equities [2][6] - The macro environment favored international equities, with significant earnings growth outside the U.S., particularly in sectors like Canadian financials and Asian technology [3] - Currency fluctuations had mixed effects, with the Japanese yen weakening and the British pound strengthening, yet VXUS's performance was driven by business fundamentals rather than exchange rates [4] Performance Metrics - VXUS achieved a 21% return compared to 17.7% for the S&P 500 through mid-December 2025 [6] - The largest holding, Royal Bank of Canada, reported a 29% year-over-year earnings growth [6] - Forward price-to-earnings ratios for MSCI EAFE markets increased from approximately 12x to 14x during 2025, contributing to returns [5][6] Market Dynamics - Valuation compression played a role, as international stocks were trading at significant discounts to U.S. equities at the start of 2025, leading to multiple expansion throughout the year [5] - The macroeconomic environment included synchronized global growth and easing monetary policies outside the U.S., benefiting various sectors [3] Future Considerations - Interest rate policy divergence is expected to influence international returns, with potential dollar weakening if the Federal Reserve maintains higher rates while other central banks ease [8]

Core Insights - Vanguard Total International Stock Index Fund ETF Shares (NYSEARCA: VXUS) has achieved a return of 29% through mid-December 2025, significantly outperforming the S&P 500, which recorded a 15% gain [1] Performance Comparison - The performance of VXUS at 29% contrasts sharply with the S&P 500's 15% return, highlighting the potential benefits of diversifying investments beyond domestic equities [1]

Core Insights - The ETF industry has experienced significant growth, achieving record inflows of nearly $1.4 trillion, nearly 1,100 new launches, and record trading volume, referred to as the "ETF Triple Crown" [1] - ETF assets have reached $13.2 trillion, accounting for 37% of the combined assets of mutual funds and ETFs, with predictions that ETF assets will soon surpass mutual fund assets [2] ETF Awards and Trends - The SPDR Portfolio S&P 500 ETF (SPYM) was awarded ETF of the year, having nearly $100 billion in assets and $33 billion in organic flows, outperforming larger competitors [3] - The Vanguard 0-3 Month Treasury Bill ETF (VBIL) was recognized as the favorite new ETF, being the largest by assets among 2025 launches at over $4 billion, demonstrating the continued appeal of low-cost options [4] - The Horizon Landmark ETF (BENJ) was noted for its clever naming, while the Baron First Principles ETF (RONB) and Bitwise Dogecoin ETF (BWOW) received mentions for their unique branding [5] ETF Issuer Recognition - Vanguard was named ETF issuer of the year, launching 15 ETFs and attracting $421 billion, which constitutes one-third of all ETF flows [6] Industry Trends - The concept of "ETF as a Share Class" was highlighted as the story of the year, with 91 filers seeking exemptive relief, indicating a shift in the industry's recognition of ETFs as legally equivalent to mutual funds [7]

More than 1,000 ETFs will launch in the United States this year. Many are expensive and have questionable long-term merit, though. Excellent long-term oriented ETFs are increasingly hard to find among the rapidly expanding crop of new ETFs.Some new ETFs still stand out. Those that charge competitive fees, are run by reputable firms and managers, and those that follow a sound process are easy additions to the core of most investors portfolios. The ETFs highlighted here check each of those boxes and go a step ...