A report from the Consumer Financial Protection Bureau finds a deepening student-loan debt crisis, with total debt rising to more than $1.4 trillion, 40% of borrowers graduating with debts of $20,000 or more, and the number of borrowers with debts of more than $50,000 having tripled between 2002 and 2014. Income-driven repayment plans are one way to shrink the size of required repayments, but fewer than 50% of eligible borrowers take advantage of them, the report says.
Retirement should be a time that opens up new possibilities, but many fail to take full advantage, writes Dave Hughes. He recommends nine ways to get more out of these years, beginning with a mindset that is open to adventure.
Changing mortality assumptions and the costs that come with them are making retirement-plan sponsors more receptive to the idea of transferring pension risks to group annuities, a survey by CFO Research found. Among organizations that have already shifted some defined-benefit plan risks to annuities, 72% said they expect to transfer additional liabilities to annuities in the future.
Only 26% of people who took an American College of Financial Services retirement-income quiz got a passing score, and only 5% got at least 80% of the questions right. Respondents showed a particular lack of knowledge about annuities, with only 29% answering correctly that annuities cost less for older people.
A conflict is developing among Federal Reserve policymakers over the timing of future interest-rate increases, minutes of the last Federal Open Market Committee meeting show. One group expressed concern about a decline in inflation, while others warned of the dangers of further delaying rate increases.
The biggest worry for advisers today is managing market volatility, a survey by Eaton Vance found. Seventy-two percent of the advisers polled said the biggest source of market volatility for the remainder of 2017 will be the US political climate.
Technology managers and suppliers say more advisers are turning to text messaging, instead of email, for client communication because response time is shorter and clients are digitally savvy. Technology firms are developing text-archiving software in response to a directive from the Financial Industry Regulatory Authority that texts must be recorded and stored.