In this roundup of the best from Retirement Daily for June 25-29: Liability-driven investing strategies, the perils and pitfalls of "gray divorce," a new bitcoin trust ETF and a tour of the friendliest countries to retire abroad in.
How do your assets measure up against future liability? Advisers are starting to use liability-driven investing, or LDI, to create income for retirees. It's the same strategy that corporate pensions use to create income for defined-benefit plan participants: One matches an asset against a future liability. And that's how David Chapman, the head of multi-asset portfolio management at Legal & General Investment Management America, goes about building retirement-income portfolios for his clients. Read more in Retirement-Income Strategies: Liability-Driven Investing.
And in case you missed it, here are more of the best stories from Retirement Daily:
Financial adviser Betty Wang talks about why 'gray divorces' have such a big impact on your financial freedom and future, and how to manage.
Thinking of retiring abroad? Some countries look upon foreign residents with suspicion or unease. Wherever you go, you'll probably want to make new friends, fit in to a local community, and settle down without trouble. Feeling at home abroad comes easily when you're surrounded by warm-hearted locals. Expats living in the destinations on this list find it easy to make local friends, and most feel at home in the local culture. Portugal, Taiwan, and Mexico are among the friendliest countries for expats, based on a survey of nearly 13,000 expats from 188 countries by InterNations, a network for people who live and work abroad.
A reader needs to know how to square up with the IRS after not taking required minimum distributions on an inherited IRA.
Is there a recession on the horizon? Is it imminent? Perhaps. The spread between the 10-year Treasury and the 2-year Treasury is getting dangerously close to inverting, says Vince Colubiale, president of FinTech Wealth Management. And inversion, he says, has been one the most accurate indicators of an impending recession. The spread was 0.34% as of June 21, 2018. Want to track the spread yourself? You can do so at this Federal Reserve Bank of St. Louis website. Among other things, Colubiale says it's a great chart to be aware of, especially for those investing near retirement.
A reader wants to know more about how filing early for Social Security will reduce his wife's benefits.
To include various investments in part in a portfolio can have virtue, but there can be too much of a good thing. Adviser Chris Boyd reviews ways to invest for income in a rising-interest-rate environment.
VanEck has partnered with SolidX, a financial-technology firm that works with bitcoin, to seek approval from the SEC for an ETF investing directly in bitcoin. The VanEck SolidX Bitcoin Trust ETF would be linked to an index based on pricing data from several trading desks.