More than 100 US House Republicans signed a letter that gives Labor Secretary Thomas Perez until Oct. 21 to provide an explanation of how the department intends to make "substantial changes" to problems with its proposed fiduciary rule. The letter urges the department to give stakeholders a chance to review its revisions before sending the proposed final rule to the Office of Management and Budget.
About 1 in 4 millennials are risk-averse when it comes to investing, and their fears could be getting in the way of strong investing practices, finds a report by Transamerica. Still, many are at least thinking about the need to save for retirement.
Financial professionals agree that estate planning is important. However, such plans are "also extremely easy to disrupt. When you have so many pieces working in concert, even small missteps can cascade into outsized damage," writes David Lenok, who discusses some common mistakes.
A Fidelity study finds that people will need about $245,000 to pay health care costs once they retire. That's 29% more than in 2005. The study argues that pre-retirees should think about their health insurance and other options well ahead of retirement.
Learning to invest efficiently, less stress at work and a better attitude toward material possessions are all benefits of pursuing financial independence, writes David Ning. "I readily admit that choosing to save money over consumption is not always easy," he writes. But "there are many side benefits along the way."
Walter Updegrave reminds investors to look beyond the bottom line when planning for retirement to ensure that their golden years are "enjoyable and gratifying." He recommends "lifestyle planning" to decide how time can be spent most enjoyably after work ends.
Many baby boomers are still reeling from the Great Recession, with 26% saying their financial situation has deteriorated in the past year and 17% saying they've used retirement savings to pay for an emergency, a BankRate survey says.
Lower-income retirement savers often get poor investment guidance if they get advice at all, Allison Schrager writes. The strategies behind workplace retirement plans are geared toward higher earners, with flawed assumptions about the risks less-affluent workers can take, Schrager writes.
Parents who stay home with their children can take steps to increase their financial security, Kimberly Palmer writes, suggesting that they contribute to various accounts, increase their financial knowledge, and stay in touch with professional contacts.
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