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The article focuses on the financial planning necessary for decarbonizing central utility plants (CUPs) in higher education institutions. Topics include the importance of developing a unique mission statement for decarbonization, the role of stakeholder feedback in shaping conversations, and the need to diversify funding mechanisms to spread investments.

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Using data from the Stockholm Stock Exchange (SSE), we study the value added by (as distinct from the abnormal returns to) analysts' recommendations. Recommending brokers' clients trade profitably around positive recommendations at the expense of other brokers' clients. Significant profits come from transactions before recommendation dates. Value added is greatest for upgrades to large caps, and largely insignificant for downgrades and recommendations of small caps, despite high abnormal returns. Brokers making profitable recommendations generate abnormally high commission income, recouping much of their clients' abnormal profits, and their abnormal commission income varies in line with the abnormal profits for their clients. [ABSTRACT FROM AUTHOR]

In the 1920s, Nikolay Kondratieff, a Russian economist, proposed a radical theory that economic events move with cyclic regularity. The theory was dubbed Kondratieff's cycles, which are now generally known as K-waves. Financial service professionals may be able to use K-wave theory when developing forecasts and anticipating policy outcomes, particularly in the context of making investment and financial planning recommendations. [ABSTRACT FROM AUTHOR]

Financial planners who engage in special needs planning (SNP) must be careful not to overlook legacy retirement plans (i.e., plans from previous employers) as possible sources of funding. While some research exists on the best practices for using Roth individual retirement account (IRA) conversions for general estate planning and wealth transfers, there is little guidance available on how to use Roth conversions of legacy retirement plans to fund SNP tools, such as special needs trusts (SNTs) and Achieving a Better Life Experience (ABLE or 529A) accounts. This article examines the strategy and reasoning for using Roth conversions of legacy retirement plans and suggests there are at least seven advantages of this strategy for clients with SNP issues: 1) access to funds at age 59½, rather than 70½; 2) no required minimum distribution (RMDs) in the lifetime of the account owner; 3) no future taxes; 4) reduced risk; 5) wealth transfer in perpetuity; 6) generally not subject to Medicaid recapture if properly structured (subject to certain conditions); and 7) no limitation on the amount of money that can be converted. [ABSTRACT FROM AUTHOR]

This paper quantifies the aggregate effects of financing constraints. We start from a standard dynamic investment model with collateral constraints. In contrast to the existing quantitative literature, our estimation does not target the mean leverage ratio to identify the scope of financing frictions. Instead, we use a reduced‐form coefficient from the recent corporate finance literature that connects exogenous debt capacity shocks to corporate investment. Relative to a frictionless benchmark, collateral constraints induce losses of 7.1% for output and 1.4% for total factor productivity (TFP) (misallocation). We show these estimated losses tend to be more robust to misspecification than estimates obtained by targeting leverage. [ABSTRACT FROM AUTHOR]

The growing uncertainty in today's business environment has a significant influence on social business's behaviour. Those enterprises could rely on public support in the past, but nowadays, they have to find a way to be more responsible about their social activity and be financially independent on public resources. Based on this theoretical background, the paper's main goal was to find a set of factors that influence crucial financial decisions within a crisis. When social businesses create an optimal financial portfolio to be financially sustainable, primary research was conducted. A sample of 57 social businesses was asked about their financial strategy. The main research goal was to compare a change before and after the first wave of the Covid-19 pandemic situation in 2020. This case has shown current financial thinking and preparedness for unusual or crises. A mixed research approach was chosen due to a limited number of respondents. The overall results found that those businesses prefer to use the current strategy (42%) in crisis, and they limit investments to survive in that situation, except marketing investments (16%). Implications for Central European audience: At the theoretical level, our study shows social enterprise concepts in the Central European context, which differs somewhat from the already established definition of mainly Anglo-Saxon and American authors. At the same time, it combines knowledge about the use of financial planning in this segment. The study results show that financial planning is essential in these companies because it can achieve social goals. A discussion would be opened on how to raise awareness of the preparation of the strategy. Alternatively, how to strengthen the financial literacy of managers or representatives of these entities. [ABSTRACT FROM AUTHOR]

Any investor not living in a barn has probably heard that portfolio diversification is a good idea. The concept of holding a wide variety of investments to reduce risk and [...]

In this article, findings from a study designed to evaluate the perceptions of widows in relation to financial advice are reported. Based on a sample of 1,100 widowed respondents, results suggest that working with a financial advisor significantly improved widows' financial confidence in their current and future financial situations. Practical implications for advisors are presented with additional suggestions for further work in this important area. [ABSTRACT FROM AUTHOR]

From the perspective of a 65-year-old who is not about to retire, financial service professionals who help their clients weather life's financial challenges play a valuable role. Helping them make and execute financial plans, preparing them to make adjustments when necessary, and encouraging them to be patient and persistent in reaching their financial goals all play an important part in keeping them on the right path. [ABSTRACT FROM AUTHOR]

The COVID-19 crisis has major impacted the insurance industry in three dimensions: business operations, underwriting and claims and insurance investing. This paper will analyse the implications for insurance investing. We start by showing the impact of the severe drawdown in the equity markets during the initial phase of the crisis in March/April 2020 on a typical insurer's balance sheet. We then look at the effects of the dislocations in fixed income, which make up the largest share of exposures in insurance companies' portfolios. We track the performance of investment grade credit during the year while paying special attention to the impact of downgrades on insurers' solvency capital. We finally study alternative investments with particular focus on private markets. These investments are a faster-growing part of insurance companies' exposures and pose specific challenges as they are complex, more difficult to access, have limited liquidity and are often harder to price, especially during times of high market volatility. Yet, compared to their equivalent public market exposures, private investments provide additional income, which allows insurers to charge lower rates on their products to policyholders. As the sophistication and complexity of investments keep growing, companies as well as regulators need to find a good balance between policyholder protection and market efficiency. [ABSTRACT FROM AUTHOR]

Retirement plans strongly influence financial security in the old age. This research is based on retirement planning by the working as well as the retired residents of Gandhinagar city in the Gujarat State of India. The findings revealed that the working residents had some understanding about the concept of retirement planning. Still they had no idea about how much to save. They could also appreciate the benefits of investing in retirement plans at an early stage. However, very few respondents had invested in the plans, which give a stable and continuous source of income post retirement. Further, the retired residents relied mostly on pension and interest income for their financial needs post retirement. It has been suggested that through proper education campaigns, the working population can be covered under the safety net of returns generated through investing in retirement plans at a younger age. [ABSTRACT FROM AUTHOR]

COVID‐19 was a shock to financial markets. On March 23, 2020 the S&P 500 index had fallen by over 31% from its closing value on the first trading day of the year and the NASDAQ index fell nearly 25%. Volatility increased. The CBOE VIX Index and trading volume spiked in March and remained elevated. But by mid‐November, the S&P 500 index was above its beginning of the year value by 10% and the NASDAQ index was 30% above. During large market declines, history tells us that investors can be rewarded if they buy, while withstanding the urge to sell. Surveys of investors, as well as those who provide investment advice, suggest that these history lessons were known and those who followed them, were well‐served. However, the COVID‐19 pandemic reinforces these lessons for investors and their advisors when encountering the next large market decline. [ABSTRACT FROM AUTHOR]

Reverse mortgage has always been viewed as a product meant exclusively for the elderly with financial hardship. However, there is a brighter side to it too. This article attempts to project reverse mortgage as a financial planning tool through a case study analysis. Using the coordinated strategy, this case explores how the line-of-credit option in reverse mortgage can meet the cash needs of a retiree during market downturns, allowing his portfolio to stay invested. The suggested strategy is a direct attack on investment risks, especially, sequence of return risk. Using this strategy, the depreciated assets are allowed to recover their original value and appreciate, ensuring better returns and longevity of investments. Dilemma: Is reverse mortgage a sustainable retirement plan? How can it be used as a financial planning tool to fund retirement? With the increasing proportion of elderly population in India (projected to be 19% by 2050), reverse mortgage has emerged as an efficient option to fund retirement days. Seeing its success in foreign countries, the dilemma, is: Is it an adequate solution to fund retirement in India? Theory: The premise of the present research is based on a coordinated strategy, used by Sacks and Lafaye (2016) where it is proposed that the client, using the line of credit option in reverse mortgage, would borrow only during market downturns, thereby leaving their market investments untouched and maximizing their gains. Basis of the Case: Phenomena-based case: financial planning for a retiree. Type of the Case: This is basically an applied decisional case, attempting to determine where reverse mortgage is an effective retirement plan or not. Protagonist Present: Mr Rajesh Sharma and Mr Anand Malhotra. Findings: After 20 years into retirement. Mr Rajesh Sharma who does not choose reverse mortgage ends up exhausting his complete investment portfolio value in the 19th year of his retirement life. Thus, he is in financial distress and has no resort to meet his financial needs except to fall back upon his children. On the contrary, Mr Anand Malhotra who opts for the line of credit option in reverse mortgage has positive net worth at the end of 20 years that can ensure a comfortable future for him. Discussions: The case recommends utilising reverse mortgage as financial planning tool for the elderly. Mr Rajesh Sharma is in financial distress and has no resort to meet his financial needs except to fall back upon his children. Mr Anand Malhotra by making the smart choice of reverse mortgage, ensured that his portfolio stayed invested longer, providing it sustenance and longevity. By opting for reverse mortgage, Mr Anand Malhotra not only shielded his investments from unnecessary withdrawals, but the option also gave him the confidence to tide over his financial exigencies The case concludes that reverse mortgage can provide greater probability of the investments/savings to survive the retirement period, coupled with a high probability of greater net worth at the end of the period. It can be safely concluded that reverse mortgage is definitely a golden walking stick for the elderly. If the government and the lending institutions take cognizance of this aspect of reverse mortgage and market it accordingly, it can turn out to be a vanguard product for the Indian elderly. [ABSTRACT FROM AUTHOR]

This article investigates the out-of-sample predictability of bond excess returns. We assess the economic value of the forecasting ability of empirical models based on long-term forward interest rates in a dynamic asset allocation strategy. The results show that the information content of forward rates does not generate systematic economic value to investors. Indeed, these models do not outperform the no-predictability benchmark. Furthermore, their relative performance deteriorates over time. [ABSTRACT FROM PUBLISHER]

This study investigates the financial attributes, financial behaviors, financial‐advisor‐use beliefs, and investing characteristics associated with having used an automated investment solution (i.e., a robo‐advisor). Data are used from the 2015 National Financial Capability Study (both the State‐by‐State Survey and the Investor Survey) to investigate the use of robo‐advisors among 1,393 individuals with non‐retirement investment accounts. Multivariable results indicated that being younger, having low or midrange income, and having lower objective investment‐knowledge scores was positively associated with robo‐advisor use. This study provides important insight for policymakers, financial practitioners, and proprietors of robo‐advisors and other fintech products. [ABSTRACT FROM AUTHOR]

It seems like we are set for a long period of behavioral bubbles and fundamental crashes in all asset and security markets. Under such conditions, it is preferable to shift mode to some alternate techniques of portfolio construction. Now is the time for Modern Portfolio Heuristics. [ABSTRACT FROM AUTHOR]

Research suggests that lump-sum investing outperforms dollar-cost averaging. Although this may be correct, not every investor has a lump sum available to invest. For investors who must invest periodically because of their personal financial situations, some form of dollar-cost averaging may be their only alternative. This paper presents very simple, very low cost modifications to dollar-cost averaging that can improve investment returns available to those who must average. [ABSTRACT FROM AUTHOR]

Very few financial planning professionals review academic publications in their field. Although academic research is sometimes user-unfriendly and too theoretical for practical application, many articles are useful and provide broad insights for the financial planner who is willing to delve into them. This article identifies 12 recent publications in investment planning, estate planning, and retirement planning—three of the areas covered in the Certified Financial Planner® topic list. The authors summarize the important aspects of these publications to make them more approachable and usable with the expectation that they will benefit the practitioner and ultimately the client. [ABSTRACT FROM AUTHOR]

This column examines three separate applications that can be employed by advisors as a way to enter the realm of derivatives in the field of portfolio construction and risk management. [ABSTRACT FROM AUTHOR]

The investment boundaries defined by Grenadier (2002) for an oligopoly investment game determine equilibria in open-loop strategies. As closed-loop strategies, they are not equilibria, because any firm by investing sooner can preempt the investments of other firms and expropriate the growth options. The perfectly competitive outcome is produced by closed-loop strategies that are mutually best responses. In this equilibrium, the option to delay investment has zero value, and the simple NPV rule is followed by all firms. [ABSTRACT FROM PUBLISHER]

Many investors purchase mutual funds through intermediated channels, paying brokers or financial advisors for fund selection and advice. This article attempts to quantify the benefits that investors enjoy in exchange for the costs of these services. We study broker-sold and direct-sold funds from 1996 to 2004, and fail to find that brokers deliver substantial tangible benefits. Relative to direct-sold funds, broker-sold funds deliver lower risk-adjusted returns, even before subtracting distribution costs. These results hold across fund objectives, with the exception of foreign equity funds. Further, broker-sold funds exhibit no more skill at aggregate-level asset allocation than do funds sold through the direct channel. Our results are consistent with two hypotheses: that brokers deliver substantial intangible benefits that we do not observe and that there are material conflicts of interest between brokers and their clients. [ABSTRACT FROM PUBLISHER]

Abstract: Although practitioners often feel that academic research is too theoretical, many articles that are written by academicians or that appear in academic journals are very relevant to the "real world" of financial services. This paper identifies 14 academic articles and summarizes them in a way that makes them more accessible to practitioners. The articles represent three of the areas in the Certified Financial Planner® topic list (investment planning, retirement planning, and estate planning). The authors of this article contend that practitioners who conscientiously review the academic literature are more likely to stay on the cutting edge of the financial services industry and, as a result, serve their clients better. [ABSTRACT FROM AUTHOR]