Salient to Investors: Sean Williams writes: FRB of St. Louis reports the US personal savings rate averaged 4.8% in June, 2015, no change from a year ago. The OECD reports the rate in 2011 for Germany was 11.4% and for France 16%. Hearts & Wallets reports that in 2014, 45% of
READ MORE... →Salient to Investors: The Transamerica Center for Retirement Studies said millennials – born from 1979 to 1996 – began saving for retirement at a median age of 22, versus 27 for Generation X and 35 for baby boomers. 71% of millennials offered 401(k) or similar plans contributed a median 8%
READ MORE... →Salient to Investors: ConocoPhillips and Abbott Lab are among the most lucrative retirement benefits, and Facebook, Amazon.com and Whole Foods Market among the least lucrative of 401(k) plans at the 250 biggest companies in the US. Over 40 percent of companies allow workers to take company contributions with them if they
READ MORE... →Salient to Investors: Matt Fellowes, formerly with Brookings, said: 64 percent of 401(k) plan participants are accumulating debt faster than they are accumulating savings. For half of the 401(k) marketplace, 96 percent of the participant’s balance is a function of their contributions and employer matches, and only 4 percent is
READ MORE... →Salient to Investors: Never put too much of your portfolio in a few investments, or in one country or industry. The employee with a significant chunk of his 401(k) in his employer’s stock, or gets his contribution matched in company stock, risks both job and retirement plans if a setback for
READ MORE... →Salient to Investors: Key things to consider about 401(k)s: Keep total investment fees under 1%; including fund expenses, administration, asset management, and any other silent fees. Over the long-term, few professionally managed funds outperform their peer market index. The hot fund of one year will often be below average in
READ MORE... →Salient to Investors: Jon Stein at Betterment writes: Everybody should watch the PBS Frontline report, The Retirement Gamble. Educate yourself Choose low cost investments… every time. Morningstar found that low-cost funds outperformed high-cost funds in every single time period and data point tested. A 2 percent difference in fees can
READ MORE... →Salient to Investors: Americans are facing a retirement crisis. Half say they can’t afford to save for retirement, while one-third say they have no retirement funds. Brooks Hamilton says you will need 10 to 15 times your income at retirement to be OK, which means you have to save more, and get
READ MORE... →Salient to Investors: Studies suggest that investors who use advisers get better returns than individuals going at it alone. Advisers usually have confidence and discipline that are key factors in successful investing. Most people do not have the time or interest in managing their own portfolios. Individual investors can be
READ MORE... →Salient to Investors: Mark Miller writes: A growing number of employers are adding unbiased third-party investment guidance options as they work to improve their retirement plans. The best type of planner: independent advisers who have the fiduciary responsibility to put client interests first. A Deloitte Center for Financial Services survey
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