Salient to Investors: The Employee Benefit Research Institute said: 48 percent of people who were aged 61 to 70 and in the bottom half of the income distribution withdrew substantially from their IRAs annually during 2002-10, along with 29 percent of people in the top quarter of incomes who were
READ MORE... →Salient to Investors: The Institute of Economic Affairs found that retirement for both men and women results in a small boost to health immediately, followed by a drastic decline in health in the medium and long-term, so people should work for longer for health as well as economic reasons. Edward
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: From March 2011 to March 2012, over 1 million people in the US filed for bankruptcy. The underlying problem is the inability to stop spending and start planning for retirement. payday loan direct deposit Many athletes go pro right out of high school or college so have no
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: Cerulli Associates says: The total head count of advisors fell 4,000 in 2011, and will fall to 297,515 by the end of 2016, from 316,109 at the end of 2011. Independent broker-dealers and the wirehouses will see the biggest decline – 18,000 by the end of 2016. The aging
READ MORE... →Salient to Investors: Mark Hulbert writes: The small number of advisers who outperform the market rarely keep doing so, so choosing a recent market beater does not increase your odds of future success. Of the 51 advisers out of more than 200 tracked who beat the Wilshire 5000 Total Market
READ MORE... →Salient to Investors: Doug Short at Advisor Perspectives writes: The two 20th century recessions and major market sell-offs devastated the retirement readiness of a many people nearing retirement age. The Labor Force Participation Rate (LFPR) for age 25-64 cohorts peaked for men in May 1954 at 95.9%, for women in
READ MORE... →Salient to Investors: Stephen Burd at the New America Foundation found almost two-thirds of private colleges for the 2010-2011 school year required students from families making $30,000 or less annually to pay more than $15,000 a year. 11 percent of students at Harvard and 14 percent at Yale received Pell
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