A 2013 survey by Richard Day Research of 648 couples shows that many couples approaching retirement have not reached agreement on a number of key issues.

2013 Survey of Couples Approaching Retirement

The Barclays U.S. Aggregate Bond Index was launched in 1976. Since its 1976 inception, the index’s worst year has been 1994 (-2.92%). Since 1993, the index has had just two negative years, 1994 and 1999 (a loss of ~ 1%). From the beginning of 2013 to the end of August 2013, the index had a total return of -6.8%.

Tactical asset allocation funds allow managers to shift their asset mix; the goal is to exploit the market’s strong periods while avoiding its weaker periods. According to Morningstar, there were > 40 such funds as of September 2013. The track record of these funds has consistently lagged returns from a balanced portfolio (60% S&P 500 + 40% Barclays Aggregate Bond Index).

The September/October 2013 issue of Journal of Indexes includes interviews with a number of well-respected investment experts. Shown below are edited versions of two of those interviews.

John Bogle, founder of The Vanguard Group

Even if current P/E ratios see a small decline, 7% is a very rational expectation for annual stock returns (2% dividend + 5% earnings growth).

There are five different ways to invest in a MLP; each investment vehicle has different ramifications. There is no perfect way to invest in a MLP; the type of investor and the desire for current income will steer the advisor toward the best MLP asset and vehicle.

[1] Individual MLP Units

A number of financial publications believe that when a mutual fund manager leaves a fund, fund investors should immediately become concerned. These scare tactics help sell publications and software. The reality is quite different.

An established ETF operator can make a small profit by offering a new ETF that brings in as little as $100,000 in annual revenue because those established firms can spread out a number of operating costs across many other funds. Companies just entering the business will need to generate at least $250,000 in annual fees.

The major selling point of “risk parity” funds is they are designed to make money in most environments. These funds typically have their assets evenly divided into three broad categories: stocks, bonds, and commodities. Risk parity funds use leverage to increase returns on bonds so that the bonds have returns similar to stocks.

Over the 30-day period May 23 through June 23, 2013, high-yield closed-end funds (CEFs) dropped 10.7% vs. 3.4% for its open-end counterpart (source: Morningstar). The primary reason for the large disparity is the use of leveraging by many high-yield bond CEFs. As interest rates rise, bond prices decline while the price of borrowing increases.