Morningstar Director Revises Three Key Retirement Strategies

Christine Benz, director of personal finance and retirement planning at Morningstar, has revised her professional guidance on three core retirement strategies following a deeper study of decumulation and new data.

Benz now advocates for hiring professional financial planners instead of utilizing a DIY approach. She notes that planners offer essential support for Social Security strategies, tax minimization, and critical decision-making as investors experience cognitive decline.

Regarding portfolio management, Benz shifted her stance to support the use of all-in-one target-date funds during retirement. She argues this approach reduces the likelihood of investor missteps that often occur with aging.

Finally, Benz now recommends building laddered portfolios of individual Treasury Inflation-Protected Securities bonds rather than using TIPS funds. She asserts that individual bonds provide a more precise hedge against inflation and avoid the interest rate sensitivity that led TIPS funds to lose value in 2022.