Practice

Brokers who offer advice to investors may be held to the same fiduciary standards as investment advisers if legislation proposed by the Obama Administration is passed by Congress.

hedge funds regulation crisis sec securities and exchange commission

Sixty-four percent of the calls going to Financial Finesse, which provides financial counseling to employees, are about debt reduction and budgeting, whereas only 15% of the calls are about investing and retirement planning.

Automatic enrollment into 401(k) plans is having the greatest impact on younger, lower-income workers, Fidelity Investments reported Tuesday.

Nearly every asset class saw robust performance in the second quarter, but the initial elation at the lack of terrible news has worn off as investors brace for a tough second half, according to Lipper's review of the second quarter.

Despite the volatile markets of late 2008 and early 2009, investor participation remains fairly stable, according to a review of retirement markets by Dublin-based Research and Markets.

Whereas in previous recessions, companies that suspended 401(k) matches always brought them back, this time around, consultants to defined contribution plans tell the Associated Press, companies are thinking about doing away with the matches forever or reducing them drastically from the typical 50 cents match for the first 6% an employee puts in.

One of President Obama’s proposed financial reforms would require employers that do not offer a 401(k) to automatically enroll their employees into an IRA. If implemented, it would give the biggest boost to the retirement savings industry since the creation of the 401(k) in 1980, enrolling 40 million new investors, and attract more than $100 billion within five years, The Wall Street Journal reports.

Despite the repercussions from the blowup of the Reserve Fund’s Primary Fund, money market funds still have not properly addressed liquidity and credit quality issues, the ratings agencies believe, and as a result they might strengthen their standards, The Wall Street Journal reports.

Diminishing employment opportunities notwithstanding, 9.5 million retired Americans are considering returning to work at least part-time, according to a study by Charles Schwab. Also, 32% of currently employed Americans expect to hold onto their jobs and delay retirement.