Senator Rubio’s surprisingly bipartisan retirement saving idea

Senator Marco Rubio (R-Florida)

When Republican politicians talk about how important Social Security and Medicare have been for their parents, it’s time to grab your wallet. These stories usually precede a proposal to cut benefits under the guise of “saving” the programs – and Senator Marco Rubio of Florida tore a page from that playbook this week. Rubio, a […]

Cruise control can drive your 401(k) – just don’t hit the gas

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401(k) plans are all about automation these days, especially target date funds, which keep workers’ accounts in balance for an age-appropriate level of risk. It’s the investing world’s version of cruise control, but a study released today finds that many investors are turning on cruise control while putting their feet on the gas pedal – […]

Funding a business with a 401(k)

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The stock market scares Jan Morris. So last year she and her husband Chuck took most of the money in their retirement accounts and invested it in something most financial advisors would regard as even more risky than stocks: a small business start-up, specifically, one making high-quality artisanal gin and whiskey from a renovated distillery […]

Should young retirement savers load up on stocks? Maybe not

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Millennials don’t seem to buy the traditional wisdom when it comes to investing. They’re the most risk-averse investors since the Great Depression, with the average portfolio 52 percent in cash, according to a recent report by UBS Wealth Management Americas. That runs counter to what most investment experts will tell you – that young people […]

Retirement confidence bounces back, but only among wealthy savers

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Americans who owned stocks in 2013 are feeling better about their retirement prospects than they did just a few years ago. For everyone else, not so much. The longest-running survey of American retirement sentiment shows confidence rose in 2013, the first increase since sentiment plunged following the Great Recession of 2008-2009. But the 2014 Retirement Confidence […]

How 401(k) cash-outs hurt down the road

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When you change jobs, do you take the money and run? A disturbingly-large and growing number of young and low-income workers do just that with their 401(k)s – and it’s damaging their chances of building adequate retirement savings down the road. Data released today by Fidelity Investments shows that 35 percent of all participants in […]

MyRA won’t close the nest egg gap, but maybe the states can

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If states are the laboratories of democracy, they need to start some retirement savings experiments – quick. About half of Americans haven’t been able to create nest eggs at all, and the labs working the problem in Washington haven’t found solutions. That’s my take on MyRA, the retirement saving program PresidentBarack Obama announced during his […]

Why boomer balance sheets are a mess

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Conversations about retirement readiness usually focus on portfolios–how much you’re saving, your investment mix, and whether you’ll accumulate assets sufficient to last a lifetime. But those conversations are missing a bigger-picture question about retirement readiness: How are household balance sheets shaping up as families approach retirement? Research by the AARP Public Policy Institute provides answers. […]

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Thinking of rolling over your 401(k)? Think twice

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Regulators are sending a clear warning: Beware the IRA rollover. The Financial Industry Regulatory Authority (FINRA), which self-polices the brokerage industry, issued a regulatory notice late last month warning member firms against overselling clients on shifting retirement dollars from 401(k)s to individual retirement accounts when they retire or change jobs. Likewise, a report last year by […]

The problem with investing glidepaths

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Investors should reduce their equity exposure as retirement approaches—that’s the conventional wisdom, and it’s the fundamental premise of the current 800-pound gorilla of workplace retirement investing: the target date fund (TDF). But conventional wisdom can be wrong—and a handful of well-respected researchers set out to prove it in recent papers questioning the current glide path […]