While many see a $1 million nest egg as the ultimate retirement goal, a person's specific situation determines whether that amount is sufficient. This involves understanding retirement costs and income requirements.
Retirement plan sponsors are becoming more interested in helping employees address their need for lifetime income, and 23% of employers have started offering at least one type of lifetime income solution, a survey from Willis Towers Watson found. Within that group 19% offer out-of-plan annuities and 10% offer in-plan annuities, according to the survey.
Financial planner Lisa Brown writes that she once refused to recommend annuities but is changing her mind in light of lengthening life spans and the disappearance of pension plans that guarantee lifetime income. "I've witnessed firsthand the benefits that annuities provide some clients, including the peace of mind in knowing they have a stable, reliable income in retirement," she writes.
FSI and other groups have submitted comments expressing concerns about cybersecurity in the Securities and Exchange Commission's proposed consolidated audit trail. FSI says the plan should include data-breach protocols and more information on how liability would be assessed in a breach.
Equity, allocation and other funds that launch during crises tend to have an edge on risk-adjusted returns, Morningstar says. Such funds are more nimble, says Lee Davidson of Morningstar.
A research breakthrough aided by the ice bucket challenge, which raised more than $100 million to fight Lou Gehrig's disease, shows clients that donating to charities can have a real impact. "The more specifics you know about how those donated dollars are being used, the better you feel," said Brightworth financial advisor Charlie Jordan.
Five percent of wealthy investors are so worried about the US presidential election's potential effects on markets that they have already liquidated their stock holdings, a survey by UBS AG Wealth Management Americas indicates. A quarter of investors in the survey, taken in June, were considering that action.
Technology is becoming more important to clients, which means some might leave their lagging financial planners for those who have adopted more advanced technology -- a trend called digital attrition. Cybersecurity is an important consideration when upgrading technology, experts say.
The Labor Department's fiduciary rule will bring changes to the way annuities are designed and sold but annuities are here to stay, according to consultant Chris Orlando. "Advisers will be forced to build a fee-based business," he writes.
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