Retirement planning

By now, most asset management executives have seen the predictions that large-cap growth will be the way to go in 2008. But digging deeper than mere asset class predictions, MME spoke with two industry leaders to tease out nuances of what fund managers can expect this year.

As traditional pension plans are increasingly being replaced by defined contribution plans, retirement income plan providers will need to adjust their tactics in order to keep up with the ever-changing retirement landscape.

As asset managers gear up for Baby Boomers' retirement years, Richard "Mac" Hisey, chief investment officer at AARP Financial, took some time out last with to speak with MME Senior Editor Brent Shearer about how investment firms are trying to reach out to Boomers.

Target-date funds recently got government approval as the default option in 401(k) plans. On the other hand, a recent study by Compass Investors, finds fault with the structure of these funds. A recent study from the Compass Institute, a think tank affiliated with Compass Investors, criticizes the structure of target-date funds. It advocates shifting asset allocations based on market and other trends, instead of on a fixed schedule.

For all of the talk about the importance of saving for retirement through a 401(k) and other savings plans, 37% of those born in 1990 and just now entering the workforce will have no savings by the time they leave the workforce, according to a report from the Government Accountability Office. As a group, those retiring in the 2050s will have only saved enough money to replace 22% of their pre-retirement income.

Asset Management Firms Hiring More Aggressively

NEW YORK-Millions of Baby Boomers in their 50s are woefully unprepared for retirement, but it's not too late to convince them to start planning.

Women who have gone through major life events, typically widows and divorcees, are often better prepared to deal with their own finances and retirement plans because they have been forced to sit down with an adviser, according to a recent study by OppenheimerFunds.

Let's hope Social Security remains a fixture on the American scene. There are too many senior citizens dependent on it, and with $1 million seeming to be the magic retirement savings goal, a vast majority are going to fall far short of that. In fact, some experts have said that even wealthy investors will be at least partially dependent on Social Security.

Chief compliance officers should make the valuation of distressed securities their No. 1 priority, Andrew J. Donohue, director of the division of investment management at the Securities and Exchange Commission advised at last week's national CCOutreach meeting, the agency's educational program for CCOs.

Let's hope Social Security remains a fixture on the American scene. There are too many senior citizens dependent on it, and with $1 million seeming to be the magic retirement savings goal, a vast majority are going to fall far short of that. In fact, some experts have said that even wealthy investors will be at least partially dependent on Social Security.

A new marketing idea we've been hearing at recent conferences for the mutual fund industry is the notion of embracing new technologies, including blogging, instant messaging, chat rooms, webcasts, podcasts, websites tailored for each individual investor and even creating communities along the lines of facebook.com and YouTube.com.

A new marketing idea we've been hearing at recent conferences for the mutual fund industry is the notion of embracing new technologies, including blogging, instant messaging, chat rooms, webcasts, podcasts, websites tailored for each individual investor and even creating communities along the lines of facebook.com and YouTube.com.

When Charles Schwab and Ariel Mutual Funds conducted their first annual Black Investor Survey at the premier Ariel-Schwab Black Investor Summit a decade ago, 57% of Blacks said they owned stocks or mutual funds. Today, that number remains the same. However, in 2002, it peaked at 74%, while in the past 10 years, the number of Whites who own stocks or mutual funds has hovered around 80%.

As the 77 million Baby Boomers begin to retire, the market for helping them manage their retirement income will begin to boom as well. Millions of retirees will be looking for financial advice and will likely turn to their local banks first, retirement experts say.

Determined to carve out its stake in the coming Baby Boomer retirement rush hour, Fidelity Investments of Boston has just unveiled a pair of brand new retirement income solutions designed to work together or separately. The products-a family of income-producing mutual funds-of-funds and a variable annuity guaranteeing income-were two years in the making, Fidelity officials said.

Retirement income is one of the most critical trends in the mutual fund industry right now-and yet, experts say few firms are getting it right.

Lifecycle funds are now taking another punch, and while this one may not be fully merited, it is one that fund companies might want to consider as a roadmap to improving such funds' performance and marketability.

Lifecycle funds are now taking another punch, and while this one may not be fully merited, it is one that fund companies might want to consider as a roadmap to improving such funds' performance and marketability.

Fidelity Investments has a bold, five-year plan to expand its scant 8.5% share of the 403(b) market and catch up to giant TIAA-CREF, which commands a monumental 67% share of 403(b) assets.