Reducing the Risk from Adding Stock Exposure

Adding other sources of diversification could significantly reduce the risk from increasing stock exposure, our research suggests.

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Stability Still Matters as Investors Embrace Risk Again

By Kent Hargis (Pictured) and Chris Marx After years of chasing safety at all costs, investors are now reaching for opportunities in long-spurned riskier stocks. But they will still want to safeguard their portfolios against painful market swings in the future.

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Active Management: Don’t Drop the Pilot

For years, we’ve advised clients to hold diversified portfolios with balanced allocations to stocks, bonds and other assets. Lately, it’s been a hard sell, especially after years of underperformance by active equity managers. But the tide may be turning.

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Are E&Fs Jeopardizing Their Missions?

Many US endowments and foundations (E&Fs) still plan to spend 5% of their assets each year, despite unusually low expected returns. We think few understand how likely it is that this will limit their ability to fulfill their missions in perpetuity.

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The Five Biggest Myths of Retirement Planning

In the world of retirement planning, some myths persist, despite continued efforts to debunk them. Below, my colleague Tara Thompson-Popernik discusses a few of the most stubborn myths we encounter.

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Selling Your Business Before Taxes Rise

Planning to sell your business? Try to wrap up the deal before year end, when today’s highly favorable US capital gains tax rate is scheduled to expire.

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High-Yield Bonds: Equity-Like Returns with Lower Risk

On the surface, high-yield bonds look a lot like their relatives in the fixed income world. But in some key respects, high-yield debt acts a lot more like equities than like other bonds. This has some often unappreciated implications for portfolio construction.

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The Risk in De-Risking Now

The extraordinary market volatility and poor equity returns of recent years—as well as fears about the macroeconomic outlook—have prompted many investors to contemplate de-risking their overall portfolios. Perhaps they should—but first, they should contemplate the return side of the equation.

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Making Forecasts Reliable—and Useful

If there’s one thing you know about capital-market forecasts, it’s that they’re usually wrong. So why bother forecasting—or paying attention to forecasts?

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Working Past 66: The Impact on Social Security Benefits

A reader of my recent article on when to take Social Security benefits asked whether my analysis would change if a person does not retire at age 66 and plans to work until age 70—and is earning more now than he expects to earn at retirement. That’s a good question.

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