Practice

Despite their growing popularity in recent years, target-date funds are grossly misunderstood, according to a survey by Envestnet Asset Management.

With more than nine in 10 shareholders reporting Internet access, the SEC's summary prospectus rule represents more than just an opportunity to provide an easier-to-understand document. The new rule provides a unique chance to refine the overall shareholder communication model.

Robert L. Reynolds loves a challenge. Without question, he certainly faces one. Trying to restore Putnam Investments' stature among America's top mutual fund companies after the firm's involvement in the trading scandal of 2003 and depletion of assets, now at $99 billion, a mere quarter of what they were in 2000-is a formidable task.

NEW YORK - Most financial transactions are dependent upon trust, but the last two decades of deregulation have eroded that trust and created a global crisis of confidence, according to experts who met last week at a global forum in the heart of New York's financial district.

Investors haven’t given up on retirement savings, but they aren’t expecting their portfolio balances to be restored anytime soon, Age Wave and Harris Interactive found in a survey of 2,082 investors they call “Retirement at the Tipping Point: The year That Changed Everything.”“A new era of cautious self-reliance is emerging from a truly unnerving fiscal dilemma," said Dr. Ken Dychtwald, founder and CEO of Age Wave. “For many people, their retirement dreams have vaporized. Each of the four generations polled is trying to alter its game plan in fascinating ways to seek peace of mind and to make the best of the years ahead.”Respondents, 60% of whom have lost money in the market over the past year, believe it will take seven years for their investments to return to their pre-crisis levels. The single-biggest worry among those age 55 or older, cited by 46% of respondents, is that they won’t be able to afford medical expenses. This is now a greater concern that lack of personal savings (18%) or uncertain entitlements (11%).Americans expect to delay retiring by an average of 4.2 years. Eighty-one percent said teaching children to live within their means is the most important financial advice parents could pass on to their children, up from 69% who said so a year ago. That was followed by 65% saying, begin saving at an early age.Ninety-five percent believe that financial management should be taught in high school and a standard subject, and 56% said the best thing about having money saved was security.However, 58% said having a loving family and relationships is the most important thing, but 33% cited being wealthy.Despite the dire outlook for the markets currently and what it has done to Americans’ savings, 60% said they view retirement as “a new, exciting chapter of life,” up from 52% last year. Seventy percent hope to work in some capacity in their retirement, not just to pay the bills but to remain stimulated and to continue to contribute to society.“While we discovered both disturbing and encouraging signs about retirement from each generation,” said David Baxter, SVP at Age Wave, “there are indications that of all cohorts, it’s the Millennials [Gen Y] that are coming out of this financial storm a wiser, more cautious and more responsible generation.”

Although their investments may have lost as much as 40% to 50% of their value, Canadians are resilient in their faith in mutual funds, PricewaterhouseCoopers found in a survey of 867 people who own mutual funds.

Smart401k has hired Impact Communications to promote its 401(k) advice services for plan participants.

Prudential Retirement has entered into an agreement with Hewitt Associates to offer Prudential’s IncomeFlex Target to Hewitt’s retirement plan clients.

Only 18% of individuals between the ages of 28 to 53 seek out financial advice, even though they are in the prime savings and asset accumulation of life, according to a survey of 800 investors conducted by Sway Research and Mast Hill Consulting. Most of this group—younger Boomers between the ages of 43 and 53, and Generation X, aged 28 to 42—turn to family and friends for advice on key investing decisions.

The Securities and Exchange Commission is holding its annual regional CCOutreach seminars between May and July.