Auto-enrollment and auto-escalation boost workplace 401(k) participation and help employees save more for retirement, but some employers aren't adding those features because they fear higher costs. Less than 40% of employers offer auto-enrollment and less than 20% offer auto-escalation, according to a survey by the Society for Human Resource Management.
Most people do not seek help from a financial adviser regarding Social Security, despite the program's complexity. Many advisers find themselves without enough information to provide guidance.
George Jones and Mark Lusco analyze strategies for managing distributions from multiple retirement accounts, including how qualified longevity annuity contracts can be used to reduce required minimum distributions without triggering penalties from the IRS.
Instead of competing with robo-advisors and technological advancements, human financial advisors should integrate digital services to reach more clients or to offer existing clients tailored and valuable information, experts say.
High-net-worth and ultrahigh-net-worth investors are increasingly focused on communication, compliance, responsibility and innovation, requiring a shift in focus from wealth managers, according to a survey. These investors also behave more like millennials than like baby boomers, so wealth managers must align strategies with preferences, the survey says.
Advisors should assess clients' financial goals and determine where they are in meeting them, instead of offering a suite of investments, writes Carl Richards, director of investor education for the BAM Alliance. Only after clients' needs are known is it appropriate to suggest investments, he writes.
The Securities and Exchange Commission's enforcement action against two investment-advisory firms gives a glimpse of how the regulator might look for and respond to cybercrime. The agency has started a cybersecurity sweep of broker-dealers and investment advisors and has issued fines of $75,000 and $1 million for violations.
Asset managers could be setting themselves up for fiduciary-duty lawsuits if they restrict employee retirement plan investment choices to in-house mutual funds, industry attorneys say.
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