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Commentary

Morningstar Moments: 3 Things You May Have Missed

Morningstar's experts discuss fund fees, mega backdoor Roth IRAs, and an alternative to annuities.

Here are the major market moments our analysts have been talking about.

1) The Fees Are Falling, the Fees Are Falling!  


https://twitter.com/MstarETFUS/status/1430524486173052930

Fund investors saved $6.2 billion in 2020. How? Fund fees are cheap, and they seem to only keep getting cheaper thanks to investors shifting toward low-cost funds. In Morningstar’s annual fee study, Ben Johnson takes a closer look at this trend. 

2) Slott Says... Push Your Roth IRA to the Limit  


https://twitter.com/christine_benz/status/1428367192790233098

High-income heavy savers can supersize their Roth IRAs with after-tax 401(k) contributions through something called a “mega backdoor Roth IRA.” Before you go running to the back door, there are a few hurdles to jump over first. Ed Slott sat down with Christine Benz to show her how this strategy works. 

3) A Cheaper Alternative to Annuities  


https://twitter.com/AronSzapiro/status/1428379205121855489

Annuities have long eased the fear of retirees who are afraid of outliving their assets. So why don’t more Americans purchase this product? They’re complex and can get expensive. However, there is another option: tontines. Jasmin Sethi writes about how the once popular product is making a comeback from 1905.  

Stay in the loop with @MorningstarInc and our analysts: 
Ben Johnson, director of global ETF research: @MstarETFUS
Christine Benz, director of personal finance: @christine_benz
Aron Szapiro, head of policy research: @AronSzapiro