There are huge tailwinds propelling financial services firms. Vestwell is one that’s clearly enjoying the breeze. The New-York based workplace savings fintech just raised $385 million in Series E funding with Blue Owl Capital and Sixth Street Growth leading the round. The haul more than doubled Vestwell’s total fundraising to $660 million, with participation from new and existing investors including Neuberger Berman, Morgan Stanley and Franklin Templeton. The infusion will be used, in the words of the fir ...

Key Takeaways Many teachers who save for retirement don't know a lot about their pension plans, which makes it hard for them to tell whether they’re truly on track. State support for teacher pensions varies widely, which means two teachers in two different states can have very different levels of retirement security. High fees in 403(b) plans and low salaries make it difficult for teachers to build savings on top of their pensions, though lower-cost options are available. It's true that every teac ...

Core Viewpoint - The private equity industry is increasingly targeting the 401(k) retirement plan market, aiming to offer alternative investments to everyday Americans, with major firms like Apollo, Blackstone, KKR, and Carlyle leading the charge [1][3][5]. Industry Trends - Private equity firms are expanding into the 401(k) ecosystem, seeking to monetize the 70 million 401(k) account holders in the U.S. [4][5]. - The market for U.S. defined-contribution retirement plans is valued at $14 trillion, presenting a lucrative opportunity for private equity firms [5]. - There is a growing interest in integrating alternative investments, such as private equity and real estate, into retirement plans, especially following regulatory changes aimed at easing access [6][18]. Market Dynamics - Interviews with industry professionals indicate a broad push from private equity firms to handle retirement plans and wealth management, capitalizing on the increasing wealth of high-net-worth individuals [2][3]. - The private-asset industry has been lobbying for government support to include alternative investments in 401(k) plans, with recent executive orders facilitating this shift [6][18]. - Despite the push, many 401(k) investors are satisfied with their current options, and only a few plans are considering adding private assets [14][21]. Competitive Landscape - Major firms like Mercer and T. Rowe Price are exploring partnerships to create private-asset funds for retirement accounts, indicating a shift in traditional asset management practices [19][20]. - Smaller private equity firms have acquired over 900 independent firms providing retirement and wealth management services, indicating a consolidation trend in the industry [12]. - Record-keeping firms, such as Empower, are also becoming advocates for alternative investments, launching funds in collaboration with private equity firms [25]. Concerns and Challenges - Some industry participants express concerns that alternative asset managers may prioritize their institutional clients over retail investors, potentially leading to conflicts of interest [9][26]. - The current market conditions show pension funds and endowments pulling back from private equity, raising questions about the sustainability of returns in this sector [10][11].

Core Insights - The article discusses strategies to maximize Social Security benefits while minimizing tax liabilities, emphasizing the importance of location and financial planning [1] Group 1: Tax Strategies for Social Security - Moving to a state without income tax, such as Florida, Texas, or Tennessee, can significantly reduce taxes on Social Security benefits [2] - It is essential to consider the overall tax landscape, including taxes on IRA withdrawals and property taxes, as these may offset the savings from avoiding Social Security taxes [4] Group 2: Financial Planning Recommendations - Individuals are advised to make Roth conversions before claiming Social Security to lower overall income and potentially reduce tax burdens from required minimum distributions in the future [6][7] - The article highlights that relying solely on Social Security for retirement is risky, and individuals should consider diversifying their income sources through investment accounts like 401(k) plans and IRAs [5]

Core Insights - The article emphasizes the inadequacy of Social Security as a sole source of retirement income, highlighting that it typically covers only 40% of retirement income, which is insufficient for maintaining a standard of living [4] - Concerns are raised regarding the effectiveness of Social Security cost-of-living adjustments (COLAs) in keeping pace with inflation, particularly due to the reliance on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which does not adequately account for healthcare costs that are more significant for retirees [5][6] - The potential depletion of Social Security trust funds by the end of 2032 is noted, which could result in a 24% cut in benefits, prompting the need for proactive financial planning [7] Financial Planning Strategies - To supplement Social Security, individuals are encouraged to invest in 401(k) plans and take advantage of employer matches, as well as to consider setting up solo 401(k) plans for self-employment [8] - Regular contributions to Roth IRAs are recommended as a strategy for building retirement savings [8] - A shift towards investing in dividend stocks is suggested as retirement approaches, providing a potential source of income [8]

Key Takeaways One-third of individuals who left a job withdrew their balance in a lump sum rather than rolling it over to their new job or another account. Cashing out before age 59 1/2 incurs a 10% early withdrawal penalty for most people, and income taxes must be paid for the withdrawal. Retirement savers are generally putting more into their 401(k) accounts these days, but much of the money Americans are saving for their future doesn’t end up lasting until then. That's because a large portion of ...

- Getty Images The most extraordinary development in the U.S. private-sector retirement system is not the shift away from old-fashioned defined-benefit plans that began around 1980 and is virtually complete today. Instead, it’s the movement away from 401(k) plans, which replaced the defined-benefit plans, and toward individual retirement accounts. Total IRA assets now exceed the amount in 401(k) plans by $7 trillion (see Figure 1). Most Read from MarketWatch - The shift from 401(k)s to IRAs moves emp ...

Core Viewpoint - U.S. Senator Elizabeth Warren raises concerns about the volatility of cryptocurrencies and their potential impact on retirement accounts, particularly in light of recent executive orders allowing 401(k) plans to include alternative assets like crypto [1][2]. Group 1: Concerns About Cryptocurrency in Retirement Accounts - Warren emphasizes that for most Americans, 401(k) plans are crucial for retirement security, and introducing cryptocurrencies could lead to significant financial losses for workers and families [2][3]. - The value of Bitcoin experienced a dramatic rise to over $126,000 in October 2025 but subsequently fell to around $90,000 by the time Warren wrote her letter, and further declined to approximately $70,000 by February 8 [2]. Group 2: Debate on Inclusion of Cryptocurrencies - The discussion surrounding the inclusion of cryptocurrencies in retirement plans is polarized, with proponents highlighting their profit potential and diversification benefits, while critics warn that such investments could worsen the retirement crisis [3]. - Experts acknowledge the inherent risks associated with the volatility of cryptocurrencies, which raises concerns about their suitability for retirement portfolios [5][6].

Core Insights - Awareness in tax planning can significantly impact investment success, emphasizing the importance of timing, account types, and decision interactions [1] Group 1: Tax Optimization Strategies - Maximizing tax-advantaged accounts like 401(k) plans, Roth IRAs, and HSAs is foundational for tax optimization [2] - Health savings accounts (HSAs) should be maximized for contributions, as they offer pre-tax benefits and tax-free withdrawals for medical expenses [3] - Strategic asset location is crucial, suggesting income-producing assets in tax-deferred accounts and growth assets in taxable accounts [4] Group 2: Proactive Tax Management - Tax-loss harvesting is a strategy to enhance portfolio tax efficiency by selling investments at a loss to offset capital gains taxes [5] - Charitable giving can significantly impact taxes, providing benefits that offset income for generous donors [6] - Home sales may not incur taxes, with exclusions of up to $500,000 for married couples and $250,000 for single filers [7]

Investment Strategies - The article emphasizes the importance of finding steady wealth-building vehicles and the right brokerage platform for long-term investments [1] - Employer-sponsored 401(k) plans are highlighted as a good starting point for retirement savings, with a recommendation to have at least 10 times one's annual income saved for retirement [2] - The 4% rule for retirement withdrawals suggests that a $700,000 retirement fund would yield $28,000 annually, not including Social Security benefits [2] Investment Insights - Achieving the first $100,000 in investments is noted as the hardest step, with advice to focus on consistency rather than aggressive strategies [3] - The article references Charlie Munger's investment wisdom, which encourages retail investors to follow a long-term approach [3][4] Alternative Investment Opportunities - The article discusses the potential of private markets, particularly venture capital, which has traditionally been inaccessible to retail investors [9] - Fundrise has disrupted this by offering a venture capital product that allows investments starting at just $10, focusing on valuable private tech companies [10] - The U.S. home equity market, valued at $34.9 trillion, is presented as a reliable wealth-building avenue, with Homeshares providing access to owner-occupied homes through a fund [20][22] Real Estate Investments - Multifamily real estate investing is highlighted as a protective strategy due to multiple rental income sources, with Lightstone DIRECT offering direct access to institutional-quality multifamily opportunities [14][19] - The article mentions that investing in shares of vacation homes or rental properties is now possible with platforms like Arrived, allowing investments starting at $100 [24][25] Art as an Investment - Fine art is presented as an asset class with low correlation to the market, with Masterworks allowing retail investors to own fractional shares of iconic artworks [28][29] - The article notes that Masterworks has sold 25 artworks, yielding net annualized returns of 14.6%, 17.6%, and 17.8% for assets held longer than a year [30]