Financial Planning

News

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• Boomers and Retirement—the View from the Road Show

  As a generation that came of age and helped shape a postwar America that was vastly different than the one their parents grew up in, it only seems natural that baby boomers would also redefine retirement and grow old much differently than their parents did.

• Younger Boomers Doing Worse Job of Saving than Elders

  Older Baby Boomers appear to be doing a better job of preparing for retirement than younger Boomers, though both groups are sorely underprepared for their golden years, a new survey finds.

• Stimulus Bill Raises Loan Limit for Reverse Mortgages

  The new economic stimulus bill raises the HECM loan limits for reverse mortgages, which will expand the amount of home equity that seniors can turn into retirement income or use to offset investment losses.

• Prudential Enhances Its Annuity Optional Benefits

  Prudential Annuities has expanded the availability and enhanced the minimum income guarantees of the suite of options available with its variable annuities.

• S&P Drops Ratings on 10 Life Insurers

  Standard & Poor’s Ratings Services has lowered its counterparty credit and financial strength ratings on 10 U.S. life insurance groups because of stressed assets.

• Financial Crisis? Not at New York Life

  New York Life's potential plans include a foray into variable annuities, expansion into the defined contribution market and mutual fund acquisitions. The growth comes as many of its peers are faltering beneath the weight of the global economic crisis.

• Life Insurers Continue Ratings Drop

  The beleaguered life insurance industry continues to take a beating from the rating agencies as Genworth Financial and Prudential Financial both were both downgraded.

• Modern Portfolio Theory Is History, Says DWS Executive

  Having suffered losses even in cautious balanced funds, investors are ready for structured investments that offer principal protection, according to the CEO of U.S. distribution for DWS Investments.

• John Hancock Expands Its Sales Staff

  John Hancock Retirement Plan Services, a Boston unit of Toronto's Manulife Financial Corp., said it has hired eight regional vice presidents and established an internal sales desk with 10 sales associates.

• Financial Crisis Is Altering Retirement Plans of High-Net-Worth Consumers

  The financial crisis ravaging the global markets is even taking a toll on high-net-worth (HNW) consumers, as a majority of respondents to a recent survey are now concerned about outliving their assets.

• Schwab Offers New Retirement Transition Tool

  Charles Schwab & Co. is offering a new tool designed to help people transition into retirement by offering them help with income, investments, Social Security and other issues they will be facing.

• John Hancock Chooses Ameriprise for 401(k) Distribution Services

  John Hancock Retirement Plan Services (RPS) has signed a new distribution agreement with Ameriprise Financial that increases the number of advisors able to offer services to 401(k) plans.

• New York Life Annuity Relaunches, Adds Assets

  New York Life Insurance Co. 'dusted off' an old product in 2005 when it reintroduced its immediate annuities to the market, and it has paid dividends as conservative investors seek products that can provide a steady stream of income in retirement.

• Congress Eyes 401(k) Changes

  With the stock market nose-dive shrinking Americans' 401(k) retirement accounts, Congress plans to evaluate what changes can be made to the system.

• Grim Outlook for Retirees

  Millions of aging Baby Boomers heeded the reassuring words of their financial advisers and remained heavily invested in equities throughout 2008, only to watch in shocked disbelief as 40% of their life savings disappeared.

• Study Sees Growth in Pensions

  The retirement market will grow substantially over the next ten years, according to a study from asset management firm Allianz Global Investors AG (AllianzGI).

• A Third of Canadians Are Expecting to Delay Their Retirement

  A third of Canadian workers say they don't expect to retire from work until after the age of 65 while less than half believe they will have sufficient savings to retire comfortably.

• FASB Formally Defers FIN 48, Provides Retirement Plan Disclosure Guidance

  The Financial Accounting Standards Board has released a staff position officially deferring the effective date of FASB Interpretation 48 for nonpublic pass-through entities and nonprofit organizations.

• Relief from Required 401(k) Withdrawals

  The lame duck Congress has passed legislation, allowing people to suspend required minimum withdrawals from 401 plans for 2009.

• Prudential Offers Investment Trusts to Retirement Plans

  Prudential Financial's Fixed Income Management unit has made its nine fixed income collective trust funds available to defined contribution plans, providing individual plan participants access to institutional products through their company retirement plans.

• Fidelity Launches Credit Card With IRA Points

  Fidelity Investments has created a credit card in partnership with American Express that allows customers to transfer rewards from retail purchases to their individual retirement accounts.

• Led by New York Life Products, Fixed Annuity Sales Rise 54% in Third Quarter

  Buttressed by favorable interest rates and sought by investors looking for shelter from falling equity prices, U.S. fixed annuity sales set a new quarterly record.

• Boomers' Golden Years Don't Glitter As Brightly

  Rather than looking forward to globe-trotting or golf, pre-retirees ages 45 and older are now worrying about saving enough money to afford daily expenses during retirement.

• Retirees Need $85K for Healthcare: Fidelity

  Retirees may need more money than previously expected in order to cover all their health care costs.