The single greatest lesson of the past two years? Buy and hold is not, in fact, dead. Not even on life support. Despite worries over Greece, Portugal, Spain and any other country with fantastic cuisine, we're still up 65 percent from the March 2009 low. And despite cover story obituaries from Time and other consumer news outlets, the 401(k)--our investment vehicle of choice--isn't going anywhere.
But without question, it will change. Politicians are getting involved, so it remains to be seen if said change will be for the better. But manufacturers, distributors, and, yes, advisors are doing their part to learn these lessons, and taking increasingly effective and creative steps to mitigate volatility with their clients' portfolio.
Some sort of insurance wrap, annuity or otherwise, is a certainty, given the president's recent remarks and the Labor Department's RFI on in-plan annuities. Nick Della Vedova, this month's cover subject, illuminates us on these and other changes he sees just around the corner. He's a young guy, just 37, and has new and exciting ideas of his own to offer up. Call him the new face for a new 401(k).
Yes, participation rates are off slightly, a consequence of trust (or lack thereof) investors feel for an industry that ranks with big tobacco and big oil on the popularity scale. But the immutable laws of investment physics dictate that what goes down must come up. With the steps Della Vedova and other industry leaders are taking, we'll be better prepared when it does.
