Investing Insights

Christine Benz, Director of Personal Finance and Retirement Planning at Morningstar, shares valuable insights on retirement spending strategies. She discusses the 3.9% safe withdrawal rate for 2026, revealing myths about the 4% rule. Christine emphasizes the need for flexibility in withdrawal strategies, which can potentially increase starting rates up to 6%. She also explores how delaying Social Security and using modest annuities can enhance retirees' income while navigating market challenges. Ultimately, she encourages adapting strategies to boost retirement living standards.

Bryan Armour, Director of ETF and Passive Strategies Research for North America at Morningstar, dives into the world of tax-efficient investing. He explains how ETFs can significantly reduce capital gains taxes compared to mutual funds, thanks to their unique trading structure. Armour discusses the importance of timing when it comes to tax payments and highlights the advantages of ETFs over mutual funds during market swings. He also explores strategies for international stocks and taxable-bond ETFs, providing insights for smarter investment decisions.

Amy Arnott, a portfolio strategist at Morningstar, dives into tax-loss harvesting and rebalancing strategies. She cleverly explains how tax-loss harvesting can save money even during market upswings. Arnott highlights sectors where investors might find losses to offset gains and warns against the pitfalls of the wash-sale rule. She also discusses the importance of rebalancing portfolios, especially as market conditions shift over time, to manage risks effectively. Tune in for her expert tips on fine-tuning your investment strategy.

Dan Sotiroff, a senior manager research analyst at Morningstar Research Services and editor of the Morningstar ETFInvestor newsletter, dives into the booming world of bond ETFs in 2025. He explains why investors are flocking to these funds and compares the flows between passive and actively managed options. Sotiroff outlines four major types of bond ETFs and emphasizes the stability that core ETFs bring to portfolios. He highlights top picks like Vanguard's BND and Fidelity's Total Bond ETF, also discussing the trade-offs and risks associated with higher-yield bond ETFs.

Jeff Ptak, Managing Director of Research for Morningstar, dives into the eye-opening findings of the Mind the Gap study. He reveals that investors, on average, earned 1.2% less annually than their funds' total returns over the past decade. Ptak discusses key factors contributing to this gap, including trading activity, fees, and market timing. He highlights how certain categories, like allocation and sector funds, have fared better. Lastly, Ptak emphasizes the importance of automation and diversification to enhance investor returns.

In this engaging discussion, Dan Lefkowitz, an Indexes strategist, delves into the factors leading to the dollar's significant fall and its impact on investors' portfolios. He emphasizes the importance of currency diversification and highlights the potential of international stocks amidst a shaky dollar. Meanwhile, Dan Kemp, Chief Research Officer, explores the stark optimism surrounding AI stocks and the opportunities hidden in undervalued sectors. Together, they illustrate how macroeconomic changes can shape investment strategies, making it crucial for investors to stay informed.

In this discussion, Amy Arnott, a portfolio strategist at Morningstar, and Dan Kemp, Chief Research Officer at Morningstar Investment Management Europe, dive into market insights for 2025. They explore why gold purchases are rising among central banks, the underperformance of small caps, and the reasons behind international stocks outpacing U.S. equities. Kemp highlights the 'Cockroach Hunt' in financial services and emphasizes identifying quality opportunities in the sector. Both guests advocate for a long-term investment strategy amid market volatility.

Dominic Pappalardo, Chief Multi-Asset Strategist for Morningstar Wealth, discusses the implications of concentration risk in today’s stock market. He explains how a few tech giants are driving market returns, making diversification harder for investors. The conversation highlights the historical context of market concentration and what can cause this trend to shift. Dominic offers insights on how to mitigate risks, advising investors to diversify with small-cap and international stocks to protect their portfolios from potential downturns.

Brian Armour, Director of ETF and Passive Strategies Research at Morningstar, shares insights on the exciting developments in crypto ETFs following recent SEC rule changes. He discusses the potential for new investment options and competitive fee structures in the crypto space. Armour also highlights the speculative nature of cryptocurrencies and why investors should approach them cautiously. Furthermore, he explains the introduction of ETF share classes by Dimensional Fund Advisors and the benefits and risks associated with these new financial instruments.

Sarah Hansen, Senior Markets Reporter at Morningstar, delves into the stock market's rally fueled by the AI boom and its implications. She highlights the Fed's recent interest rate cuts and the balance between inflation and a weakening job market. Key risks, such as high tech valuations and the market's selective attention to potential economic headwinds, are discussed. Hansen also explores AI spending trends and the emerging IPO landscape, while advising investors to brace for volatility and maintain long-term discipline amid uncertainty.