Robert Brokamp: Choosing the right retirement account and the long-term return of gold. That and more on this Saturday Personal Finance edition of Motley Fool Money. I'm Robert Brokamp, and this week, I speak with financial planner and CPA Sean Mullaney about why some investors should favor pre-tax traditional retirement accounts, despite all the benefits of Roth accounts. But first, hear a few items from the news last week. First up, we turn to the latest weekly asset allocation review from Jurrien Timmer, ...

Financial Data and Key Metrics Changes - In Q4 2025, the company achieved organic revenue growth of over 10%, adjusted EBITDA growth of over 13%, and adjusted EPS growth of almost 12% for the quarter and nearly 14% for the full year [6][7] - The total run rate reached over $3.3 billion, growing 13%, with total asset-based fees (ABF) run rate of $852 million, growing 26%, and recurring subscription run rate of over $2.4 billion, growing over 9% [8][9] - The company has delivered 11 consecutive years of double-digit adjusted EPS growth [7] Business Line Data and Key Metrics Changes - In the Index segment, Q4 was the best quarter ever for new recurring subscription sales, with a growth rate of 18% [9] - Analytics posted the second-best Q4 on record for new subscription sales, with subscription run rate growth of over 8% [19] - Private Capital Solutions saw recurring sales growth of 86%, supported by innovative new products [9][20] - Sustainability and climate new subscription sales were lower than last year's levels, particularly in the Americas [10] Market Data and Key Metrics Changes - Total ETF and non-ETF AUM linked to MSCI indices reached approximately $7 trillion, driven by record inflows into clients' ETF products linked to MSCI indices, especially in Europe [9] - Equity ETFs linked to MSCI indexes captured a record $67 billion of inflows during Q4, totaling $204 billion for the full year [17] Company Strategy and Development Direction - The company is focused on leveraging AI to enhance its capabilities across various product lines, including analytics and custom index creation [11][35] - MSCI aims to have a fully integrated company where each product line benefits from and contributes to every other product line, amplifying financial growth [23][24] - The company is committed to delivering long-term targets of low double-digit revenue growth and adjusted EBITDA growth of low to mid-teens [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on favorable long-term secular trends and the momentum across product lines and client segments [6][11] - The company is seeing significant opportunities in high-growth client segments, particularly among hedge funds and wealth managers [11][13] - There is optimism regarding the recovery of ESG-related sales in Europe, although challenges remain in the Americas [70] Other Important Information - The company repurchased nearly $958 million of its shares in Q4 at an average price of about $560 per share, reflecting strong conviction in its prospects [7] - Baer Pettit, the president, announced his retirement, effective March 1, which may impact future leadership dynamics [25][26] Q&A Session Summary Question: AI Adoption and Growth Impact - Management highlighted that AI has been integrated into various operations and products, enhancing efficiency and client service [31][35] Question: International Flows and Sales Opportunities - Management confirmed that there has been a significant uptick in activity in Europe and EMEA, with subscription run rates now higher than in the Americas [42][43] Question: Private Assets and Trends - The company noted strong sales in Private Capital Solutions, driven by new offerings and increased client interest [48][49] Question: Free Cash Flow Dynamics - Management discussed the impact of higher cash taxes and interest expenses on free cash flow, while projecting strong double-digit collection growth [54][56] Question: ESG Market Recovery - Management indicated that recovery in Europe is underway, albeit slower than desired, while challenges persist in the U.S. market [67][70]

Group 1 - The article discusses the expertise of Sensor Unlimited, who has a PhD in financial economics and has been covering the mortgage market, commercial market, and banking industry for the past decade [2] - Sensor Unlimited focuses on asset allocation and ETFs related to the overall market, bonds, banking and financial sectors, and housing markets [2] - The investing group Envision Early Retirement, led by Sensor Unlimited, offers solutions for generating high income and growth with isolated risks through dynamic asset allocation [2] Group 2 - Envision Early Retirement features two model portfolios: one for short-term survival/withdrawal and another for aggressive long-term growth [2] - The group provides direct access via chat for discussing ideas, monthly updates on all holdings, tax discussions, and ticker critiques by request [2]

Group 1 - The article discusses the expertise of Sensor Unlimited, who has a PhD in financial economics and has been covering the mortgage market, commercial market, and banking industry for the past decade [2] - Sensor Unlimited focuses on asset allocation and ETFs related to the overall market, bonds, banking and financial sectors, and housing markets [2] - The investing group Envision Early Retirement, led by Sensor Unlimited, offers solutions for generating high income and growth with isolated risks through dynamic asset allocation [2] Group 2 - Envision Early Retirement features two model portfolios: one for short-term survival/withdrawal and another for aggressive long-term growth [2] - The group provides direct access via chat for discussing ideas, monthly updates on all holdings, tax discussions, and ticker critiques by request [2]

Core Viewpoint - Gold is increasingly viewed as a critical asset in investment portfolios, serving as a hedge against geopolitical tensions and economic uncertainty, and is being favored over US Treasuries as a safe-haven asset [1][3]. Investment Trends - There is a noticeable shift of private wealth away from USD-denominated assets and traditional safe havens in Europe due to regulatory and political uncertainties, prompting new investment ideas and payment ecosystems [2]. - Demand for gold from the jewelry sector is expected to remain muted in 2026, but investment and central bank purchases are anticipated to grow due to geopolitical and economic uncertainties [5]. Gold Mining Sector - Gold mining equities have seen a significant increase of over 150% in the past 12 months, presenting a leveraged opportunity for investors as these companies benefit from stable all-in sustaining costs (AISC) [7]. - The operating leverage in gold mining can lead to profit margin expansion when gold prices rise, enhancing financial health and enabling miners to pay down debt or increase dividends [8]. Market Dynamics - A lag effect is often observed between gold prices and gold miners' performance due to capital expenditure delays and fluctuating production costs [9]. - The industry is exploring lower grade mining deposits and gold recycling, which may become viable with higher prices, indicating a combined exposure to gold mining stocks and physical gold as an attractive allocation strategy [10]. ESG Considerations - The VettaFi Gold Miners Screened Index tracks the performance of major gold mining companies while incorporating ESG screens to align with sustainable practices [12]. - The industry is making progress in adhering to ESG norms and governance principles, with emerging nations improving licensing processes for mining operations [13]. Central Bank Activity - Central bank purchasing of gold is expected to remain strong, with a significant portion of known global gold reserves already extracted, highlighting the stability of gold production [15].

Group 1 - The article discusses the expertise of Sensor Unlimited, who has a PhD in financial economics and has been covering the mortgage market, commercial market, and banking industry for a decade [2] - Sensor Unlimited focuses on asset allocation and ETFs related to the overall market, bonds, banking and financial sectors, and housing markets [2] - The investing group Envision Early Retirement, led by Sensor Unlimited, offers solutions for generating high income and growth with isolated risks through dynamic asset allocation [2] Group 2 - Envision Early Retirement features two model portfolios: one for short-term survival/withdrawal and another for aggressive long-term growth [2] - The group provides direct access via chat for discussing ideas, monthly updates on holdings, tax discussions, and ticker critiques by request [2]

Core Insights - The article discusses the expertise of Sensor Unlimited, who has a PhD in financial economics and has been covering the mortgage market, commercial market, and banking industry for the past decade [2] Group 1: Company Overview - Sensor Unlimited focuses on asset allocation and ETFs related to the overall market, bonds, banking, financial sectors, and housing markets [2] - The company offers two model portfolios: one for short-term survival/withdrawal and another for aggressive long-term growth [2] Group 2: Services Offered - Features include direct access via chat for discussing ideas, monthly updates on all holdings, tax discussions, and ticker critiques by request [2] - The investing group Envision Early Retirement, led by Sensor Unlimited, provides proven solutions for generating high income and growth with isolated risks through dynamic asset allocation [2]

Core Insights - Ralph Lauren (RL) is outperforming Tapestry (TPR) in 2026 within the Apparel, Accessories & Luxury Goods sector, despite both companies facing challenges from uneven discretionary spending and promotional pressures [2] - RL's advantages include a lower price-to-operating-income valuation compared to TPR and stronger revenue and operating income growth, indicating superior brand momentum and execution [3] Company Performance Comparison - RL's stock may present a more favorable investment opportunity than TPR due to its lower valuation metrics and better financial performance [3] - Tapestry operates through three main brands: Coach, Kate Spade, and Stuart Weitzman, with a significant retail presence of 939 Coach stores globally [5] Investment Strategy Insights - Asset allocation is emphasized as a more strategic approach than merely stock picking, with Trefis' wealth management partner demonstrating positive returns during market downturns [4] - The Trefis High Quality Portfolio aims to mitigate stock-specific risks while providing exposure to potential upside, outperforming its benchmark indices [6][8] Market Trends and Future Outlook - Analyzing Tapestry's stock price in relation to its historical performance may reveal whether the current valuation discrepancy is temporary or indicative of ongoing underperformance [7] - Continuous underperformance in Tapestry's revenue and operating income growth could suggest that its stock is overpriced compared to competitors, with limited chances of reversion [7]

Core Viewpoint - Coinbase Global (COIN) shares have experienced a 10.2% decline over the past five trading days, raising concerns about the impact of geopolitical tensions and delayed cryptocurrency regulations on the company's performance [1] Company Position - Coinbase Global is currently valued at $58 billion, with a revenue of $7.0 billion and a trading price of $226.93 [3] - The company has achieved a revenue growth of 48.6% over the last 12 months, alongside an operating margin of 27.0% [3] Historical Performance - Historically, COIN has delivered a median return of 18.3% within a year following sharp declines since 2010, indicating potential for recovery [4] - The stock has dropped 90.9% from its peak of $357.39 on November 9, 2021, to $32.53 on December 28, 2022, while the S&P 500 experienced a peak-to-trough decline of 25.4% during the same period [10] Downturn Resilience - Concerns arise regarding COIN's resilience if the market declines further, particularly if the stock decreases an additional 20-30% to $159 [5] - COIN has performed significantly worse than the S&P 500 during various economic downturns, both in terms of the extent of decline and recovery speed [5] Liquidity and Valuation - Coinbase Global has a Debt to Equity ratio of 0.08 and a Cash to Assets ratio of 0.41, indicating strong liquidity [9] - The shares are currently trading at a P/E multiple of 20.2 and a P/EBIT multiple of 16.3, suggesting a high valuation [9]

Financial Data and Key Metrics Changes - Earnings per share (EPS) for Q4 2025 was $0.81, unchanged from the prior quarter, while full-year EPS increased to $3.09 from $2.93 in 2024 [4][5] - Revenue for Q4 increased by 2% sequentially to $143.8 million, and full-year revenue rose by 6.9% to $554 million [4][5] - Operating income for Q4 increased by 3% to $52.4 million, with full-year operating income up 6.3% to $195.1 million [6][5] - The effective fee rate for Q4 was stable at 59 basis points, consistent with the prior quarter [5] Business Line Data and Key Metrics Changes - Ending assets under management (AUM) in Q4 was $90.5 billion, slightly down from Q3, but average AUM was higher compared to the prior quarter [6][19] - Net inflows during Q4 were $1.2 billion, primarily from advisory and closed-end funds, offset by market depreciation and distributions [6][19] - The institutional pipeline strengthened, ending the year with $1.72 billion across 20 mandates [22] Market Data and Key Metrics Changes - U.S. REITs returned just 3.2% in 2025, ranking last among the 11 GICS sectors in the S&P 500 [20] - Natural resource equities performed well, with a return of nearly 30%, while global listed infrastructure saw returns ranging from 14% to 22% [21] - Global real estate stocks were flat in Q4, with gains in Asia-Pacific markets countered by weakness elsewhere [11] Company Strategy and Development Direction - The company aims to focus on harvesting returns on investments made in new strategies and vehicles over the past years [25] - There is an expectation for REIT earnings to accelerate above trend to roughly 8% in 2026 and 2027 due to lower supply and increasing demand [16] - The company plans to increase coverage in the RIA channel and expand its institutional presence outside the U.S. [25] Management's Comments on Operating Environment and Future Outlook - Management noted that economic activity and market returns are expected to broaden in 2026, with above-consensus global growth anticipated [14] - The company is optimistic about the return of investor interest in private real estate, driven by improving market conditions [36] - There is a belief that the combination of broadening economic growth and relative valuation attractiveness will benefit the company's asset classes in 2026 [18] Other Important Information - The company reported liquidity of $403 million at year-end, a $39 million increase from the prior quarter [8] - The effective tax rate for the quarter was 25.7%, consistent with the previous year [8] - The company celebrated its 40th anniversary in 2026, highlighting its evolution and commitment to listed markets [31][32] Q&A Session Summary Question: Signs of improving demand for private real estate - Management noted early signs of increasing interest in private real estate, with expectations for it to become a more significant contributor in 2026 [36][38] Question: Progress in the institutional channel - Management indicated a strong pipeline for the institutional channel, with improved conversations and a broader range of mandates [45][46] Question: Dynamics driving the won and unfunded pipeline - Management confirmed that the recent increase in the won and unfunded pipeline reflects broader market dynamics and improved allocator confidence [48][50] Question: Regional demand for advisory and sub-advisory - Management observed expanding demand in non-U.S. markets, with allocators from various countries showing interest [53][54] Question: Areas of demand for active ETFs - Management reported strong interest from RIAs and existing holders of open-end funds converting to active ETFs, indicating a positive trend for future growth [61][62]