…401(k). Assuming that their funds are put into precisely the same investments and earn exactly the same amount, let’s further say that they each have account balances of $110 upon retirement. But when they withdraw that money, Bob will get only $100 after state and…
…As with any future event, it is unclear what will happen with interest rates in 2020. The Fed is currently signaling a hold on rates or at most one rate cut in 2020. They will have to balance a slowing U.S. economy and mild inflation,…
…of the year count. That’s important because it can include former employees if they still have an account balance. This reality, plus the annual plan cost of carrying former employees, encourages many plan sponsors to force out former employees with small balances. The Department of…
…interest rates and market conditions. CEFs can trade at a significant discount or premium at any time, which can impact return volatility. Also, since CEF managers are not subject to daily cash outflows, this allows the fund to invest in less liquid securities-which in itself…
…the Social Security Administration several billions of dollars a year. Closing them should help to delay when the Social Security Retirement Trust Fund might run out of cash; as of November 2015, that time was anticipated to arrive in 2035. In the meantime, if you…
…analysis, data and forecasts to be difficult, if not impossible, to rely on. There is a saying that “markets dislike uncertainty”, which is helping drive stocks downward, with investors moving into “safe haven” assets such as US government bonds, gold and cash. The Chinese economy…
…has generally been made through private infrastructure funds. US infrastructure investment in general has been hindered by competition from the municipal bond market. However, lower returns in the public markets, governmental partnerships and the prospect of long-term steady cash returns have the potential to increase…
…the provider must sell bonds at a loss and this loss is passed on to the participant. Conversely, if the participant waited 12 months, likely, some bonds would mature during that time at face (or book) value, and the cash could then be used to…
…(IRAs) in 2016.” The GAO noted that, when account owners do not claim money from retirement savings accounts or cash checks from their plans, the funds may be transferred to the appropriate state’s unclaimed property offices; assets and uncashed checks from employer-sponsored retirement plans like…
…in the others. By dividing your money among stocks, bonds, and cash alternatives you can spread your risk while conserving opportunities for gains. Leave Your Money Alone While borrowing money from yourself may seem like a good idea, it’s not! Money taken out of your…
…as a distinct asset class alongside stocks, bonds, private equity, real estate and cash. Another important development for pensions has been the introduction in 2018 by the EDHEC Infrastructure Institute of a set of benchmarks, or indices, to evaluate the performance of infrastructure funds. In…
…requirement of participants to certify in writing or by other electronic means that they do not have sufficient cash or liquid assets reasonably available to address the hardship. Prior to making a hardship distribution, the recipient must agree to preserve source documents and to make…