Looking at the stock market over the past 20 years, you might think of Charles Dickens: It was the best of times—and the worst. But while the 2000s and 2010s have differed starkly in performance, collectively they have reinforced investing lessons on patience and discipline.
The US stock market has delivered an average annual return of about 10%. Most years, though, have been a lot different than the average. Understanding the range of outcomes can help increase the odds of a successful investment experience in the long term.
Fashionable investment approaches will come and go, but investors should remember that a long-term, disciplined investment approach based on robust research and implementation may be the most reliable path to success in the global capital markets.
Investors may be tempted to extrapolate recent returns into the future, which can lead them to abandon their investment philosophy at potentially inopportune times. While negative outcomes are disappointing, investors should view them with the proper perspective and stay the course.
Quarterly performance of the global equity and fixed income markets.
As 2019 approaches, and with US stocks outperforming non-US stocks in recent years, some investors have again turned their attention towards the role that global diversification plays in their portfolios.
DC Dimensions, a national investment publication, featured Two West in their Winter 2018 magazine as their cover story titled “Focusing on Income for Better Outcomes.” This fascinating and informative look into Two West’s approach to retirement income solutions showcases the next step beyond defined contribution (DC) plans. By offering both custom an “off-the-shelf” retirement income solutions, Two West is hailed as an innovative advisor that is quietly setting the standard in this arena.
As many of you have heard by now, the Department of Labor has recently passed down new rulings surrounding fiduciary standards that will affect most employers and their retirement plan providers. For the most part, this ruling ensures those in charge of a retirement plan have to act solely in the interest of plan participants and their beneficiaries.
While this is no big change for us (because we’ve held ourselves to a fiduciary standard from the beginning), the new rulings may increase the risk and liability you as employers hold over the decisions you make surrounding your retirement plan. These new rulings are largely increasing the standards our industry is held to (a good thing), but it can mean some extra paperwork (and extra headaches) for those who oversee company retirement plans. (more…)