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☆ A top investment chief explains why bonds offer an attractive hedge for a mild and brief recession in 2023
▼ + stars: | 2023-01-21 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

I'm senior reporter Phil Rosen, and below I'm sharing my conversation with Northwestern Mutual's chief investment officer, Brent Schutte. He sees the bond market as this year's best recession hedge. Phil Rosen: You said you're expecting a mild and brief recession this year. Brent Schutte: The good news is that the bond market has repriced, and the bond market is a hedge against that recession. BC: I do think earnings will come down this year, and cheaper equities give a margin of safety against that.

☆ Gen Z workers want to retire before 60—here’s how much they need to save each month to get to $2 million
▼ + stars: | 2023-01-18 | by ( Cheyenne Devon | ) www.cnbc.com time to read: +1 min

Gen Zers, defined as Americans between 18 and 25, aim to retire by 59 on average, according to Northwestern Mutual's 2022 Planning and Progress study. Millennials, defined as those between 26 and 41, intend to retire by 61 on average. On average, American workers think they'll need $1.7 million to retire comfortably, according to Charles Schwab's most recent study, but that varies by generation. Gen Zers and millennials believe they'll need to put away $1.4 million and $1.8 million, respectively. However, a shorter time in the workforce means you'll need to put more money into your retirement savings to meet your financial goals.

☆ Sam Bankman-Fried is now writing his own newsletter while under house arrest at his parents' $4 million property: 'I didn't steal funds'
▼ + stars: | 2023-01-13 | by ( Phil Rosen | ) www.businessinsider.com time to read: +7 min

Presumably writing from his parents' $4 million property in Palo Alto, California near Stanford, Sam Bankman-Fried published a lengthy newsletter yesterday, titled "FTX Pre-Mortem Overview." One statement stood out to me: "I didn't steal funds, and I certainly didn't stash billions away." In the note, Bankman-Fried highlighted that both FTX and Alameda Research were raking in billions in profits in 2021. A key to the collapse, he explained, was 2022's crypto bear market that left just about every token worth dramatically less than the year prior. Well, Bankman-Fried yesterday outlined two versions of the hedge fund's balance sheet, one from each of the past two years.

☆ Vanguard's global head of portfolio construction explains why the 60/40 portfolio still offers investors the best chance of long-term success even after a dismal year — and lays out the key investment
▼ + stars: | 2023-01-12 | by ( Lisa Kailai Han | ) www.businessinsider.com time to read: +5 min

Despite abysmal returns in 2022 there's a reason the 60/40 portfolio is a classic, says Vanguard. Long hailed as the cornerstone investing strategy, the 60/40 portfolio swiftly fell out of favor with investors after its returns were annihilated last year. But as equity valuations collapsed in 2022 so too did the 60/40 strategy, with an illustrative portfolio plunging 12% from the beginning of the year to December. In 2023, he predicts that the equity market returns between 5% and 6% — not anywhere near the dizzying gains of 2021, but far from last year's collapse. Furthermore, last year's massive correction may actually spell a brighter future for the 60/40 portfolio over the longer term.

It said 80% of its close to $8 trillion in assets are in its index funds, which primarily attract retail investors. Vanguard's biggest competitors, BlackRock Inc (BLK.N) and State Street Corp's (STT.N) asset-management arm, rely more on institutional investors including pension funds and foundations. Many retail investors are also interested in matters like climate change, but prioritize them less in building retirement portfolios, said Rosenbluth and other industry analysts. A FINRA Investor Education Foundation study of retail investors last March found only 9% of respondents held ESG investments. A big factor behind this gap is retail investors' lack of familiarity or knowledge about ESG products, the study found.

☆ BlackRock's iShares flows top Vanguard's ETFs, fixed income on the up
▼ + stars: | 2023-01-11 | by ( Davide Barbuscia | ) www.reuters.com time to read: +3 min

NEW YORK, Jan 11 (Reuters) - BlackRock's iShares exchange traded funds (ETFs) gained more net flows than Vanguard's ETFs last year, according to estimates from industry tracker Morningstar, putting the world's biggest asset manager in the lead for the first time since 2019. Despite the yearly declines, net flows into ETFs, both globally and in the United States, were the second-highest ever last year, with BlackRock's iShares regaining the top position. Estimated net flows into BlackRock's global iShares ETFs amounted to about $220 billion last year against nearly $214 billion in estimated net flows into Vanguard's ETFs, according to Morningstar data. Net flows into Vanguard's ETFs had been higher in the prior two years. "For many investors, ETFs remained the vehicle of choice for low-cost, broadly diversified exposure to the stock and bond markets."

☆ A 30-year-old self-made millionaire shares 4 investing principles to follow in 2023
▼ + stars: | 2023-01-05 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +5 min

He shares four investing principles that anyone can follow in 2023 to build wealth. He earned enough from his salary plus commissions to start investing in real estate in his early 20s. While real estate may always be his bread and butter, he also invests in the stock market. The self-made millionaire shared four investing principles that anyone can follow in 2023 to build wealth. This principle can also be applied to real estate investing.

☆ Three painful lessons for investors in 2022. How to put them to work in the new year
▼ + stars: | 2023-01-02 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Perhaps the one thing that investors can rally around is this: 2022 is finally over. Here are three valuable lessons for investors in the aftermath of 2022. Before we entered a rising interest rate environment, high-flying tech stocks seemed to have limitless potential. "Many investors saw a high rate, high inflation year for the first time since the 1980s. And if we think about [2023] as well, it's still a high rate, high inflation environment."

☆ Warren Buffett's deputy grew his retirement account from $70,000 to $264 million in under 30 years. He explained how to save a fortune, and why shrugging off losses is key.
▼ + stars: | 2022-12-31 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +4 min

Warren Buffett's deputy grew his retirement fund from $70,000 to $264 million within 30 years. "In a perfect world, nobody would know about this account," Weschler told Sloan in an email, adding that he hoped the revelation would motivate people to start saving and investing early in their careers. The investor opened his individual retirement account (IRA) in 1984. "One of my personal investment mantras is that there's no such thing as a loss, it's just an unmonetized lesson," he told Sloan. The switch means he won't owe any taxes when he cashes out his retirement account.

Vanguard vs. TD Ameritrade: The biggest differencesCompare Vanguard and TD Ameritrade VanguardTD Ameritrade investment account Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. Read our review Read Our Review A looong arrow, pointing rightVanguard and TD Ameritrade's features and account options also vary. Most of the brokerage's actively managed mutual funds have a $3,000 minimum, but you'll only need $1,000 for investor shares in Vanguard Target Retirement Funds and the Vanguard Star Fund. Its other automated investing account, Vanguard Personal Advisor Services, offers something more: one-on-one advisor guidance. Vanguard vs. TD Ameritrade — Frequently asked questions (FAQ)What is the difference between Vanguard and TD Ameritrade?

☆ Analysis: Investors count on bonds to rescue battered 60/40 portfolio in 2023
▼ + stars: | 2022-12-21 | by ( David Randall | ) www.reuters.com time to read: +5 min

A 60/40 portfolio, which typically allocates 60% of assets into stocks and 40% into bonds, counts on moves in the two asset classes to offset one another, with stocks strengthening amid economic optimism and bonds rising during uncertain times. So-called 60/40 portfolios, which mix stocks and bonds, are on place for their first down year since 2018. Though market participants tend to avoid bonds during inflationary times, they are a popular destination for haven-seeking investors when the economy wobbles. Consecutive annual declines in the 60/40 portfolio have been rare. Higher-than-expected borrowing costs or rebounding inflation could deal another blow to investors in both stocks and bonds.

"I don't think it would qualify as a recession," Powell said of the growth rate penciled in by policymakers. Recessions in the United States have come in many flavors - deep or shallow, short or long. That's twice the annual growth the Fed says the United States will have experienced in 2022, and what it foresees through 2023. The rise in the unemployment rate then was more than the Fed currently anticipates for next year. The Fed sees unemployment rising from 3.7% now to 4.6% in 2023 and remaining almost unchanged for two years after that.

☆ Vanguard's decision to leave the world's biggest climate-finance group could impede Biden's plan to protect Americans' savings from the climate crisis
▼ + stars: | 2022-12-09 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Vanguard announced on Wednesday it's pulling out of an initiative to fight climate change. Biden previously proposed a plan to involve the financial sector in reaching net zero carbon emissions. As Insider previously reported, Biden last year released a report that focused on mitigating the financial risks climate change puts on people's retirements, pensions, savings, and more. However, Republicans have plans to increase oversight over Wall Street firms that are assessing climate change and prioritizing environmental, social and governance causes, known as ESG. Still, the world is making some progress toward fighting the financial risks of climate crisis.

☆ Bob Pisani: Heeding the investment wisdom of Jack Bogle starts with keeping it simple
▼ + stars: | 2022-11-18 | by ( Bob Pisani | ) www.cnbc.com time to read: +8 min

But selling the public on just buying an index fund that mimicked the S&P 500 was a tough sell. Keep costs low by owning index funds, or at least low-cost actively managed funds. He made a case for owning a single balanced fund (65/35 stocks/bonds) and said it could capture 97% of total market returns. Having too many funds (Bogle believed no more than four or five were necessary) would result in over-diversification. The total portfolio would come to resemble an index fund, but would likely incur higher costs.

☆ Vanguard launches Australian pension fund in bid for $2 trillion savings pool
▼ + stars: | 2022-11-10 | by ( ) www.reuters.com time to read: +2 min

SYDNEY, Nov 11 (Reuters) - The world's second-largest fund manager Vanguard launched a pension fund in Australia on Friday, the first new fund licence approved in six years as it bets a reputation for low fees will help break into the country's trillions of retirement savings. Twenty-four years after the launch of Vanguard's first Australian fund, Vanguard Super opens with 12 products, including a default "Lifecycle" fund that gradually shifts a member's holdings into more conservative investments as they age. Fees for the default option will be the lowest in the Australian pension market for younger members and those with balances under A$50,000 ($33,080), according to analysis from accounting firm Deloitte commissioned by Vanguard. "We want to deliver members a low-cost, high-quality super fund that includes a default offer designed to move with them right through life," said Vanguard Australia Managing Director Daniel Shrimski in a statement. ($1 = 1.5115 Australian dollars)Reporting by Lewis Jackson; Editing by Stephen CoatesOur Standards: The Thomson Reuters Trust Principles.

☆ Vanguard's head of tech details the asset manager's move to the public cloud that's already helped it cut costs by 30%
▼ + stars: | 2022-11-07 | by ( Bianca Chan | Carter Johnson | ) www.businessinsider.com time to read: +5 min

Vanguard's tech chief is ready to play the field when it comes to the public cloud. Since Vanguard's first big push into public cloud in 2019, the firm has primarily relied on Amazon Web Services for much of its cloud tools. Similarly, he referenced the potential of Google Cloud Platform's "analytics capabilities" as another potential selling point. The public cloud is one of five main pillars of Vanguard's broader modernization of its application portfolio that began around 2019. In 2021, AWS detailed how the tech giant meets with Vanguard's Cloud Business Office monthly to review costs, and in one instance reduced its serverless compute expenses by 50%.

☆ Meet the key people involved in the passing of the torch at Ray Dalio's Bridgewater Associates
▼ + stars: | 2022-11-07 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +5 min

Co-CEOs of Bridgewater Associates Nir Bar Dea and Mark Bertolini. When it comes to the world of hedge funds, there's arguably no bigger name than Ray Dalio. It's not just the fact that Dalio grew Bridgewater Associates to the $150 billion behemoth that it is today. To be sure, Bridgewater isn't the only hedge fund in the midst of a changing of the guard. The dispute between billionaire Dan Och and Sculptor Capital Management doesn't seem like it'll be cooling off anytime soon.

☆ The co-manager of Vanguard's $48 billion income fund has beaten 88% of competitors this year by finding winning dividend stocks using this simple strategy
▼ + stars: | 2022-10-29 | by ( James Faris | ) www.businessinsider.com time to read: +5 min

Vanguard's Sharon Hill has overseen a fantastic performance for her $48 billion income-focused fund. She targets stocks with promising dividend growth, valuations, fundamentals, and sentiment. This market environment may be choppy, but her view is that investing in the right stocks with proven dividend growth is better than letting idle money erode under high inflation. "Dividend growth is one of the few things that has kept up with inflation as you go back and look over the decades," Hill said. "So when you go back and you look at the '70s, '80s — which is the last time you can actually find any notable inflation — what you see is dividend growth pretty much kept pace with it."

☆ Vanguard's Paul Malloy on the state of munis: It's the best investment in fixed-income
▼ + stars: | 2022-10-21 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailVanguard's Paul Malloy on the state of munis: It's the best investment in fixed-incomePaul Malloy, Vanguard head of municipal principal investment, joins 'The Exchange' to discuss the state of municipal bonds.

☆ Americans think you need $1.7 million to retire comfortably—here's how much you need to save each month to get there by 65
▼ + stars: | 2022-10-20 | by ( Cheyenne Devon | ) www.cnbc.com time to read: +1 min

On average, American workers think they'll need $1.7 million saved for retirement, but a little less than half believe they're likely to meet their savings goals, according to a recent Charles Schwab study. That's understandable: Financial planners typically recommend saving between 10% and 15% of your gross annual salary for retirement, which is no small feat. Workers with employer-sponsored retirement plans only contribute around 7% of their income toward their retirement fund on average, according to Vanguard's "How America Saves 2022" report. With this in mind, CNBC calculated how much you'd need to put away to save $1.7 million by 65, as well as how much you'd need to earn to accomplish this without saving more than 15% of your income. Here's how much you need to put away each month to save $1.7 million by 65.

REUTERS/Dado Ruvic/IllustrationLONDON, Sept 28 (Reuters) - Borrowing costs for UK firms are soaring, with sterling corporate bond prices headed for their biggest monthly fall since the 1990s as fallout from the British government's "mini-Budget" grows. That, according to Vanguard credit portfolio manager Sarang Kulkarni, in turn helped ease conditions slightly in the investment grade bond market. Yields and bond prices move inversely. The sterling corporate bond market, much smaller and less liquid than the equivalent euro or U.S. dollar markets, is driven largely by moves in UK gilts, which have slid in value in recent days. He said that liquidity in the corporate sterling market - not great at the best of times - was looking "almost non-existent" right now.

☆ How BlackRock is angling to get it on the boom in renewable natural gas, a controversial energy source
▼ + stars: | 2022-08-25 | by ( Rebecca Ungarino | ) www.businessinsider.com time to read: +6 min

BlackRock's acquisition of Vanguard Renewables underscores the rise of renewable natural gas. It is also where the world's largest asset manager went and found its latest target: An eight-year-old energy company with 160 employees called Vanguard Renewables. Last month BlackRock said one of its funds would acquire Vanguard (no relation to its asset management rival), which produces what the industry calls renewable natural gas, or biomethane. "The gas industry has done a great job in branding both natural gas and renewable natural gas. RNG projects capture methane, which has a far greater global warming potential than carbon dioxide, and turn that into a renewable energy.

☆ 'Super savers' share 7 strategies they use to save more than half of their income
▼ + stars: | 2022-06-21 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +10 min

'Super savers' who save more than 50% of their income track their spending and set specific goals. They also focus on increasing their income so they have more money to save. Insider rounded up seven savings tactics from "super savers," or people who are setting aside more than 50% of their income, to help you keep more of what you make. Focus on cutting the other 2 major expenses: food and transportationSuper savers will often focus on cutting "the big three expenses": housing, food, and transportation. If you're trying to save money on transportation, use public transit to get around if it's available in your area.

☆ 'The investments just grew so much': A single mom quit her job after reaching financial freedom in 4 years with a $900,000 portfolio. She shares 3 steps every woman should take to reach earlier retire
▼ + stars: | 2022-01-12 | by ( Laila Maidan | ) www.businessinsider.com time to read: +7 min

She started her career in 2002 but had contributed only about 10% of her salary to her retirement accounts — and not every year. Before 2017, she had $125,000 saved in her retirement accounts, she said. Everything changed that year when she decided to start maxing out her tax-deferred accounts. Her process didn't involve any strategic maneuvers in the stock market like swing or options trading. The second key step is you need to max out your tax-deferred accounts, such as a 401(k), 403(b), and 457(b), she said.

Before reading "Millionaire Teacher," I thought my investing options were: go it alone, or hire a pro. But, as it turns out, there's a Goldilocks-esque option sitting smack-dab in the middle that I'd never considered: intelligent investment firms. Hallam uses Vanguard's Target Retirement Funds to outline how intelligent investing works (though robo-advisors aren't quite the same thing). In addition to the Vanguard Target Retirement Funds described above, which come with a wide range of target retirement dates, Hallam lists out a series of companies that offer the same services. ), you might really benefit from handing the reins over to an intelligent investment firm.

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