When not to save for retirement

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Everyone should save for retirement – that is a mantra we have all heard endlessly. But for many people, saving for retirement actually should be fairly low on the financial priority list – well behind the more immediate goals of building a rainy day fund and reducing their consumer debt. That is evident in new […]

Why a mandatory retirement saving plan still isn’t dead in the U.S.

Teresa Ghilarducci

In today’s New York Times, I examine the prospects for a universal, mandatory retirement saving system in the U.S. The idea has long been left for dead, since the concept of employer mandates has been toxic ever since passage of the Affordable Care Act. But some states have begun implementing mandatory programs of their own, […]

Beefing up advice options in 401(k) plans

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Would you like some advice with that 401(k) plan? Two of the leading companies in online investment advice launched initiatives this month aimed at getting more personalized financial advice to workplace retirement savers. Betterment, a leader in the “robo-advisory” automated portfolio market for retail investors, announced plans this month for a new technology-driven offering for […]

Why haven’t 401(k) managed accounts gained more traction?

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Retirement savers who get professional help with their 401(k) portfolios stand a good chance of seeing better outcomes than those who don’t. But that doesn’t mean plan sponsors or participants are rushing to adopt one-on-one advisory services. The U.S. Department of Labor gives defined contribution plan sponsors three options for a qualified default investment alternative […]

Young workers in target-date funds hit hard by market drop

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As the stock market has whipsawed for the past two weeks, young workers who have all their retirement funds tied up in long-range target-date funds may have been the hardest hit. The average 25-year-old fully invested in a 2060 target-date fund series saw a 10 percent decline in account value from the market’s recent peak […]

When life events intervene in your retirement plan

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Financial plans typically assume a normal retirement age in the mid-60s or beyond, but life events have a way of intervening. Half of all retirees say they left the workforce earlier than planned, according to the 2015 Retirement Confidence Survey conducted by the Employee Benefit Research Institute. The key culprits include health problems or disability […]

Supreme Court 401(k) ruling latest shift in favor of retirement savers

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Doing the right thing by retirement savers – could it be the new black? The U.S. Supreme Court ruled this week that employers have a duty to protect workers in their 401(k) plans from mutual funds that are too expensive or perform poorly. The landmark ruling – which was unanimous, sends a strong signal to […]

Retirement investors need patience as bond market wavers

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With bond markets in turmoil, what is a 401(k) investor to do? Probably not much. Retirement investors have enjoyed the best of both worlds these past two years: a bull market in both equities and bonds. But the bond market has been weathering volatility and sharp declines since late April, with prices falling and yields […]

Survey finds an unfounded rise in retirement confidence

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Denial is the first emotional stage of grief – and that may be where Americans are at right now in their attitudes about retirement security. The 2015 edition of the longest-running national survey of retirement confidence, released today by the non-profit Employee Benefit Research Institute (EBRI), reveals a second consecutive annual jump in the percentage […]

Romney’s huge IRA makes a comeback in Obama retirement proposal

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It was a memorable moment in the 2012 presidential race. In their October 16 debate, Defending his blind trust investments, Gov. Romney said: ROMNEY: Just going to make a point. Any investments I have over the last eight years have been managed by a blind trust. And I understand they do include investments outside the United […]