Social Security turns 75 on Saturday, and pressure to raise the claiming age for full benefits is rising. But that would hurt the least well-off most, said experts at the Retirement Research Consortium meeting in Washington last week.
The 40-year-old leader of the “independent fiduciary movement” is passionate about making retirement plans more responsive to the needs of participants.
The median annual income for people over age 65 in the United States is only $18,000, including public assistance and financial help from friends and family. The average—skewed upward by the highest incomes—is almost $29,000.
Vanguard analysts put the chance of a double-dip recession at about 20%. The bond yield curve suggests only a 6% risk, but the yield curve isn't as reliably predictive as it used to be, they say.
When clients discover that products have been sold to them without the adequate use of process, some advisors will surely face a day of reckoning, says the president of The Strategic Distribution Institute, LLC.
PIMCO's $239 billion Total Return Fund, which Gross manages, has returned 13% in the past year, beating 71% of its peers, according to Bloomberg.
The problem is that the demographic group that is selling homes and investments—the postwar BabyBoom generation—will be larger than the group that will be buying the assets.
Assets in target date mutual funds grew 9.8 percent in the first quarter. Lifecycle mutual funds managed $281 billion at the end of the first quarter of 2010, up from $256 billion at year-end 2009.
“Five years ago we started translating long term care costs into square feet of real estate, to highlight the heavy burden of paying for care,” said Denise Gott, chairman of LTC Financial Partners LLC.
The nation’s largest mutual life insurer announced a record $870 million worth of income annuity sales in the first half of 2010, along with gains in life insurance, long-term care insurance, mutual fund sales.
Tax breaks, when seen as passive spending programs, are a form of government waste. So raising taxes might shrink the size of government. Or not.