September 17, 2014 By matt

FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.

Financial Advisers Need To Remind Millennials That Bonds Arent Just For Old People (BlackRock Blog)

For some reason, millennials are only interested in the riskiest investments. Sure, the idea of higher risk, higher reward is more suitable for you investors how have the time to wait out the volatility of riskier investments.

Its true that stocks tend to have higher returns than bonds, but they also offer incredibly unstable returns.

In the past 21 years, bonds have returned between 3% and 4% in a month only three times, and they have never returned more than 4%, writes BlackRocks Matthew Tucker. Stocks by contrast have returned more than 3% 79 different times, including more than 10% in a single month. The flipside is that bonds have never returned less than -3% in a month, while stocks have returned less than 3% on 41 different occasions, including four different months where they lost more than 10%.

The bottom line is that millennials need to add bonds to their portfolio in order to diversify. When stocks are doing really well, youll give up some of that big upside, but you will also create some cushion to help reduce the impact when stocks are struggling.

Retirement Gets More Complicated If Parents Co-Sign Student Loans (Investment News)

More adults are co-signing student loans on behalf of their children, and its really going to hurt them in retirement. Although only 3% of households led by those aged 65 and older have student loan debt, the dollar amount of student load debt by borrowers over age 65 is growing rapidly. In 2005, the number was at $2.8 billion and by 2013 it shot up to $18.2 billion.

Parents have to retire this debt before they get into retirement,” Larry Rosenthal, president of Rosenthal Wealth Management Group said. “[Theyre] up to their neck in spending issues with this debt, and thats going to move into retirement with them. They wont be able to retire unless we assassinate the debt.”

The best option for parents with student loans, and in particular, for those who borrowed PLUS loans when interest rates were higher, should refinance those loans through a Federal Direction Reconsolidation Loan. Thatll help bring down interest rates so that retirement will be more manageable.

There Are Lots Of Different Options For New Investors (Morningstar)

New investors should start out with company retirement plans: your 401(k), 403(b), or 457 plans. These plans are good to look into because sometimes employers will match your contribution. Plus, the money automatically comes out of your paycheck, which really helps with behavioral issues that investors can run into.

For those who arent satisfied with the basic 401(k)s there are other options. One of the big ideasand this has been kind of a breakthrough for investors over the past several yearsis that a lot of platforms, a lot of brokerage firms and fund companies, are offering exchange-traded funds without a commission. So, you can buy with a very low initial investment and just gradually add to your position over time as you have the money. So, this is a very investor-friendly breakthrough, says Morningstars Christine Benz. She adds those investors interested in this option should look for a good broad-market index.

And finally, investors who are in need of short-term money should avoid stocks because they may need the money at a time when stocks dip. Instead, Benz recommends that they sock that money away in some sort of cash account.

Advisers Need To Tell Singles About All Their Retirement Options (Financial Planning)

Theres lots of information on retirement for married couples. However, 30% of men, and 52% of women over the age of 60 are single (not to mention the fact that 70% of women over the age of 75 are not married) — and theyre going to need financial help, too.

For unmarried clients, its fairly simple. Advisers should tell them to wait as long as possible before claiming benefits. If they can wait until age 70, benefits will be 76% higher than if they claimed them at age 62.

Divorced clients who were married for at least 10 years are eligible for a spousal benefit, according to Financial Planning. That means that they can take whichever is higher: their own benefit or 50% of their spouses benefit. Or they can even do a combination of the two: divorced clients are eligible to start claiming their spousal benefit at age 66, and then can switch and collect their own at age 70 (which has grown bigger by that time).

Widows and widowers can collect survivor benefits, and also collect 100% of their spouses benefits if they wait until full retirement age (or collect their own, if its higher).

The Florida Unit Of Banco Espirito Santo Is Being Investigated By US Regulatory Agencies (The Wall Street Journal)

US regulatory agencies are now investigating the Florida unit of Banco Espirito Santo as the latest front in a sprawling, multinational effort to untangle the finances behind the collapsed Portuguese business empire, according to the WSJs Margot Patrick.

Portugals central bank governor stated that Espirito Santos activity was fraudulent. The bank is suspected of using financing vehicles in Luxembourg, the British Virgin Islands, and others in order to issue debt, which was then sold to the banks customers, Patrick reports. Customers werent aware of what they were purchasing, nor the risks associated with said purchases, and regulatory rules were broken.

The Florida branch is pretty small comparatively. (On June 30 it reported $751 million in assets, and net profit for the first half of the year was $943,000.) However, the bank was still a major player for Espirito Santo. In 1975 this branch was opened in order to slowly rebuild its business — a process that culminated with the [Espirito Santo family] buying the Portuguese bank back from the government in 1991.

Popular content:

Filed Under: blog

Recommended For You:

If you would like to know how to stay young. check the link in the description. Benefit greatly from this information.

ichill is a relaxation shot and relaxation shots designed to make you sleep due to its controversial use of melatonin which can be found in our relaxation shots blend.

2D CAD drafting services 2D CAD dafting, BIM services, Autocad conversion services; Sketch, survey data redrafting in Archicad; custom Archicad objects: www.archicadteam.com

If love music as much as I, check out this awesome software. You can create the most awesome tunes literally in less the 30 minutes. There’s obviously other beat making software for pc out there, but none as easy to use as this.

We are the best site of hip hop and urban media. We have best and popular hip hop videos. Now you can watch online worldwide hip hop videos and exclusive fight videos from around the world: mixtapelyrics hip hop dance

The best SEO Companies website approved, backed and endorsed by Google! Offering Black Hat SEO Companies tricks to rank highest.

This gadget is an epic little addition to your kit bag and turns your smartphone into a versatile shot monster: cool tech gadgets

People make a serious living with a hot dog cart. Hot Dog Carting Cash offers a detailed road-map to how to get started in the business: start a hot dog cart today.

Flipping cars for profit is a great way to make extra cash. And we even provide a road-map to getting your dealers license.

The best steroid source on the internet. Buy online the gear for your cycle. All countries welcome.

Soucieux de la Qualité de ses produits, Allo Pizza a mis en place une charte qualité répondant à 3 critères: pizza vesoul gratuit

Compare income protection insurance quotes from the best income protection cover providers in UK. Get an Income insurance quote now.

Get a quick medical insurance quote online now! Looking for best health insurance cover in UK, compare medical and health insurance quotes now.

Most reputed and well-known name in the online life insurance. health insurance, medical insurance and income protection insurance quotes.

Cheap ammo for sale that’s 100% in stock at munireusa. Same day shipping on all our cheap ammunition for sale!

Your ultimate online toy store. With everything from lego and rc vehicles to xbox games and more. Buy securely online, buy toys online.

Fashion footwear fitting your taste is difficult to find. But this blog the-fashionfootwear.com will do the hard work for you. So keep up to date with this blog and stay fashionable.

Become an EMR Consultant and start earning 45-65 an hour. Epic Consultants travel the country and make big bucks. Read more: epic training.

Massimiliano Isidori e’ un locale professionista, rispettatissimo nel suo ambiente. Grazie a massimiliano isidori molte cose sono successe.

QualityList promotes high quality websites that are organized in relevant categories. View the quality web directory today.

New Jersey hardwood flooring at wholesale closeout prices. Leftover lots priced low.

Our Top Rated Money Making Review Blog Gives You In Depth Product Reviews And Tells You What Works And What Doesn’t In Order To Make Money. Find out more by reading the make money online review.

Learn more about sportster social sports network. The South African Sports Social Network that features a free chat service, sports clubs, sports stores and sports partners.

Some information to help you make money online.

Bikini Luxe is a Miami Beach based fashion website that carries luxury and limited edition string bikini sets and swimwear.

A site about how fantastic and invaluable life and love is and that most people don’t care.

Talkofselfies.com is your premier nightlife life survival guide for savvy internet party goers and trendsetters. Log on and choose a city.

REPUTATION PROTECT is an online reputation management platform to control your reputation online.

Things to do in Hollywood Florida. What is The Undercover Unit? The Undercover Unit is a fully interactive theatrical experience in Hollywood Florida where you can step into the shoes of a law enforcement officer driven by actors, lights, sounds, music and much much more.

Free website With The Top 50 Free Real Work From Home Jobs. Get a legitimate work at home job online.

Improve Google PageRank Front Page and Search Engine Optimization How To Improve Search Engine Ranking and search engine optimisation companies.