More and more Americans are retiring with 401(k) and IRA savings rather than pension benefits. Unlike pensioners, these folks must manage their savings throughout retirement. How long will that be? No one knows, but it could be 20 years or more. Financial professionals refer to this challenge as “longevity risk.” Fortunately, there is a way … Continue reading "Run Out Of Money? No Way."
Last year’s SECURE Act paved the way for greater access to workplace savings plans. Now, Congress is focusing on ways to increase how much Americans save. Ways and Means Chairman Richard Neal and Ranking Member Kevin Brady have introduced the Securing a Strong Retirement Act of 2020 or SSRA. The bill is focused on increased … Continue reading "This Bill Would Help Americans Save For Retirement"
In a recent Bloomberg Law article, Jim Jorden, a partner with Faegre Drinker Biddle & Reath LLP, reviewed the Department of Labor’s (DOL) latest fiduciary effort, a proposed exemption to permit investment advice fiduciaries to get paid. With more Americans living longer and needing guaranteed lifetime income offered by annuities, this DOL effort can affect consumer … Continue reading "Consumers Need Harmonized Fiduciary Rule"
The economic slowdown caused by the COVID-19 pandemic has pushed more older workers out of work. Many of those affected are increasingly anxious about their retirement security. The last thing policymakers should do now is to create more anxiety for those needing some retirement certainty. Unfortunately, that’s exactly what the Department of Labor has done with its … Continue reading "Department of Labor Should Protect Retirement Savers’ Access, Choices"
Retirement savers have different needs when it comes to advice and guidance. So, it’s important that consumers have access and choice. Some people practice a buy-and-hold strategy, engaging financial professionals who earn transaction-based commissions. Others seek and pay for ongoing advice and management services from fiduciary advisers. Retirement savers also seek to be treated fairly. … Continue reading "Department of Labor Should Retain Access, Choices for Retirement Savers"
The “fiduciary-only” voices are at it again – this time attacking the Labor Department for attempting to follow the law, and by doing so safeguard access for lower- and middle-income savers. With its 2016 fiduciary rule vacated by the Fifth Circuit Court of Appeals, Labor recently restored its original investment advice rule. The Department’s goal … Continue reading "Fiduciary-Only Shuts Out Some Americans Saving for Retirement"
In recent years, major corporations like FedEx and Alcoa have shifted retiree pensions to annuities offered by life insurers. While these pension risk transfers shift obligations to an insurance company from an employer, they don’t change the benefits retirees receive. That is because, like traditional pensions, an annuity guarantees retirees a stream of income they … Continue reading "Retirees Protected in Pension Risk Transfers"