Money Management Executive Latest News

While workers’ confidence in their ability to retire and at least pay for basic expenses has rebounded since the start of the recession, Americans clearly are not setting their expectations high enough.

Registered investment advisers are thinking outside their more typical client prospecting and communications streams and product mix this year.

Driven by the success of exchange-traded fund provider BlackRock, ETFs appear to be gaining notable market share in 401(k) plans, and while their use so far has primarily been among small companies, once the trend catches on among larger employers, ETFs’ popularity in 401(k) plans could become quite notable.TheStreet.com reports.

Congress suspended the required minimum distributions for IRA, 401(k) and other retirement plan investors age 70-1/2 last year, since people’s balances took such a hit the year before and many wanted to remain invested in hopes of a rebound. As the market has, indeed, rebounded nicely, Congress is likely to reinstate the RMDs this year, experts say.

While many workers in this time of economic instability and rampant layoffs are afraid to rock the boat by questioning their employers' decisions, recent lawsuits over high 401(k) fees have empowered some workers to ask their employers to offer lower-cost choices.

A fund for retirees and near-retirees from JPMorgan, the J.P. Morgan Income Builder Fund, aims to deliver institutional-type risks by investing in collateralized mortgage obligations, real estate investment trusts, high-yield debt, convertible bonds and emerging markets equities.

Nearly 70% of defined contribution balances have returned to levels prior to the stock market slump of 2008 and 2009, according to a survey by Mercer, a provider of benefits administration outsourcing.

Bona fide 401(k) investment advice could finally become standard practice in defined contribution plans, thanks to the Department of Labor's proposed rules limiting the actions of investment professionals who take commissions.

AXA Equitable uncovered a dismal outlook for the economy and retirement in "Retirement in America: A Survey of Concerns and Expectations," in which it polled both investors and economists and found a large percentage of both groups bearish on the economy and the stock and bond markets.

America has yet to witness the tremendous societal transformation retiring Boomers will have, as the oldest is a mere 64 and the youngest, 46. But we are beginning to see signs of the tsunami-sized impact this army of 77 million will have on the workplace, the economy, healthcare and even the arts and entertainment.