…with a huge balance sheet. According the Council on Foreign Relations and the Federal Reserve, the Fed’s assets have expanded to $739 million at the end of 2002 and to $3.5 trillion as of August 2013. In the 1970’s, the role of Fed was officially…
…with an annual lifetime income disclosure, which is designed to illustrate how the participant’s account balance can be converted into an income stream at retirement. Included in the lifetime income disclosure statement are: The account balance; date of starting payments; age at which the annuity…
…buying. From an economic growth standpoint, rather than relying on fractional banking for growth, policymakers would need to hope that people will spend their cash as opposed to putting it under their mattresses. Investors may also decide to keep their savings in cash or valuables…
…their retirement savings. End automatic cash-outs. On the other end of the roll-in spectrum is the cash-out: Sponsors can automatically cash out accounts with less than $1,000 that have been left behind by participants who have moved on to new jobs; the PSCA reports that…
…at the so-called ‘risk-free’ rate, for a negative return. The alternative is to simply take your money in cash and hide it in your mattress or bury it in the yard; the return from doing so may indeed be nothing, but that’s still better than…
p>Target date funds, also sometimes called ‘age-based’ or ‘time horizon’ funds, are a series of balanced investment portfolios designed to correspond with a particular retirement time horizon. These funds seek to meet retirement goals through a combination of capital appreciation and income. WHY USE TARGET…
…your balance, the more you will pay. Example: If 1 basis point equals 0.01% or 0.0001, than an investment fund with an expense ratio of 50 basis points would cost $500 annually, based on a $100,000 account balance in your retirement plan. $100,000 retirement plan…
…participant with a huge balance sheet. According the Council on Foreign Relations and the Federal Reserve, the Fed’s assets have expanded from $739 million at the end of 2002 to $3.9 trillion as of January 2019 and has been as high as $4.5 trillion. Most…
A compelling feature of a 401(k) type retirement plan has always been the opportunity to contribute money from your current income on a pre-tax basis today – let it work for you over the years – and then pay taxes on the accumulated balance as…
…a 0.8% drop in the third quarter, they have declined 8.7% for the YTD. For the quarter, intermediate high yield (+2.4%) outperformed U.S. intermediate credits (+1.0%) and intermediate U.S. Governments (+0.4%) per the Barclays indices. Cash and cash equivalents continued to return close to 0.0%….
…should be driven by its fundamentals, that is, by its cash flow, profits and dividends, was reflected in the work of Benjamin Graham, who was considered the “father” of value investing. He believed that if the current price of a stock is below its fundamental…
…stock market as they cash in their savings? After all, boomers (i.e. those aged 46-64) have been estimated to own nearly 50% of the U.S equity market. Recent studies by Vanguard1 and others have cast doubt on the theory that boomer retirements will depress the…