Table of Contents
Digest September 8th
Alternative Assets Enter 401(k)s—A New Frontier for Retirement Planning
A recent executive order signed in August 2025 is prompting regulators—the Department of Labor, SEC, and Treasury—to revisit the rigid rules around including alternative investments (like private equity, real estate, and cryptocurrencies) in 401(k) and other defined-contribution plans. While the move could broaden clients’ options, many advisors remain cautious, citing the greater complexity, lower liquidity, and elevated risk compared to traditional assets like stocks and bonds.
Robo‑Advisors Soar on International Stock Rebound
In 2025, robo-advisors have benefited significantly from the surge in international markets. The MSCI World ex‑U.S. Index gained 19.5% in the first half of the year—far outpacing the S&P 500’s 6.2%. Platforms with higher international exposure, such as Interactive Advisors and Vanguard, are leading performance rankings. Meanwhile, robo-advisors are evolving to integrate alternative assets, active ETFs, ESG themes, and hybrid human support, all while maintaining low fees and expanding assets under management.
Modernizing Retirement Advice: Safe Buckets, Phased Withdrawal, and Guaranteed Income
In response to heightened market volatility, persistent inflation, and client concerns around Social Security and Medicare, many advisors are shifting their retirement strategies. Techniques gaining traction include phased retirement planning, establishing “safe buckets” of liquid income to mitigate sequence-of-returns risk, and incorporating guaranteed income solutions like annuities and tax-advantaged healthcare accounts. Additionally, alternative assets such as private credit and real estate are being explored for diversification and enhanced returns.