A Putnam Investments survey finds 85% of advisors use social media, which has become a valid, proven way to attract and retain clients. However, many advisors do not make the most of it, writes JMRConnect CEO Mostafa Razzak, who lists five ways to maximize advantage from social platforms.
PepsiCo disclosed in a securities filing that last year it bought a group annuity contract to have an insurer take on defined-benefit plan liabilities. The company says it made $452 million in discretionary contributions to its plans, namely to fund the risk-transfer deal.
More fee-based variable annuities are appearing as annuity providers move to offer consumers and sales channels alternatives to commission-based products. Insurers hope the new products will help reverse the recent decline in variable-annuity sales.
Voya's fixed-indexed annuity with a two-stage interest-crediting strategy is designed to compete with indexed certificates of deposits while also offering tax deferral. The company plans to add a fee-based version of the annuity in 2017.
As robo-advisor apps become ever more niche-focused, former Merrill Lynch executive Carlos Garcia has launched Finhabits, specifically tailored to Latino-Americans with advice on various aspects of investment, including Roth IRA products. Garcia says Finhabits demonstrates a true understanding of Latino-American culture, puts an emphasis on education and encourages clients to start saving for retirement as early as possible.
In terms of how long they think their savings will last in retirement and how much they believe they should set aside, most Americans believe they're falling far short, according to a study from Bank of America Merrill Lynch and Age Wave. But many say they're willing to make substantial changes to meet retirement goals, including practices related to health, savings and work.
Many advisers are faced with the task of helping clients deal with the burden of increasing college costs, writes Maria Bruno, CFP. She offers some specific steps to develop a savvy strategy.
A lack of awareness of risk tolerance is one big shortcoming that causes mistakes that undermine an investment portfolio. The problem is particularly acute for retirees because years of falling bond yields have cut into a major source of income, pushing retirees into riskier investments.
Seven states are pressing ahead with initiatives to encourage retirement savings by Americans with no employer-sponsored plan, despite a Republican effort to stop the move. California, Connecticut, New Jersey, Maryland, Oregon, Washington and Illinois are trying to address what Illinois Treasurer Michael Frerichs calls a retirement crisis.
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