An adviser survey conducted by Hartford Funds revealed 62% of respondents said client anxiety, particularly when fueled by geopolitical events, has resulted in poor investment decisions within the past year. John Diehl of Hartford Funds said it is vital for advisers to start a conversation with clients about such fears and points out three key issues to address.
Changes in Social Security over the years might have done little to influence how people save for retirement, possibly because they lack awareness of how their benefits are changing, according to a working paper by four economists. "Since payroll taxes are deducted immediately from individuals' paychecks ... a tax increase is likely to be more salient and well-understood than a benefit cut," the economists write.
Advisers and planners weigh in on pros and cons of paying off a mortgage before retirement. They acknowledge doing so reduces financial stress but discourage use of retirement savings for this purpose.
American ideas of wealth, what it means and how to attain it are changing, requiring a paradigm shift in the wealth-management industry, Schwab Investor Services executives say. To this end, the company has developed the Modern Wealth Index to track Americans' wealth-management skills and help them meet their goals regardless of their total wealth.
Collective investment trusts, which many large 401(k)s use, are gaining popularity with smaller plans, too, largely because they offer significant cost advantages. Greg Iacurci outlines benefits and drawbacks of these trusts.
Financial wellness has potential to increase productivity and reduce costs for employers and deliver a valuable service to employees, and 77% percent of employers are planning to offer at least one form of financial support this year. This article offers 10 insights for improving program design and effectiveness, including broadening the definition of financial wellness beyond retirement and having a strategy in place to target each aspect of that definition, focusing on personalized support versus a one-size-fits-all approach, providing opportunities for skill and confidence building, and crafting messages to inspire hope.
Sales of previously owned homes in the US in May recovered from a sharp decline in April, and strengthening demand from homebuyers drove up the prices sellers were able to demand, the National Association of Realtors said. Sales rose 1.1%, and the median selling price surged 5.8%.
Appetite for socially responsible investing is growing as millennials mature. But advisers should encourage clients to review the financial viability of any investment to avoid costly mistakes, write Jane King and Caroline Hedges of Fairfield Financial Advisors.