A survey by the Federal Reserve found that 28% of adults who are still in the workforce have no pension and absolutely no savings set aside for retirement. However, that figure is a slight improvement from 2015, and more Americans reported they were "living comfortably" or "doing okay" as compared to the last time the survey was held.
US Labor Secretary R. Alexander Acosta says he has "found no principled legal basis" to delay the effective date of his department's fiduciary rule beyond June 9. "Respect for the rule of law leads us to the conclusion that this date cannot be postponed," he said.
Millennials report saving a higher percentage of their income than other generations, with one-third putting aside more than 20% of their salaries, according to a recent Merrill Edge Report. The report found that unlike earlier generations, those between the ages of 18 and 34 are less focused on saving for retirement and more focused on saving to enable life experiences such as traveling and eating out.
A recent survey shows a rise in the number of adult children staying with their parents and an increase in cases of adults returning to the parental home for various financial reasons, which can hamper parents' own retirement plans. The phenomenon has prompted advisers and counselors to urge parents to talk frankly with their offspring, establish clear financial ground rules and insist on their contribution to the household budget.
The proliferation of custom indexes means that the number of indexes is now greater than the number of stocks in US markets. The repackaging of active strategies into special indexes has become popular with investors, prompting the creation of ever more indexes to satisfy demand.
The Securities and Exchange Commission has been cracking down on firms that issue fake financial news in the form of untrustworthy recommendations, and a Harris Poll has found increasingly prevalent fake news creates difficulty for investors to make wise decisions. Columnist Chris Taylor has compiled a checklist to help investors spot fake news.
The Federal Reserve may find it difficult to retreat from its expanded influence over financial markets even as it works to scale back its stimulus, analysts say. Changes in money markets and regulations have made the Fed more integral to the industry, they say.
Increasing pressure on margins could lead more advisers to charge hourly fees instead of a percentage of assets under management, says Paolo Sironi of IBM Watson Financial Services. He told delegates at a recent seminar that the advisers who thrive will be those who automate as much of their back-office processes as possible so they can focus on providing high-quality consulting services.
Too many fee-only advisers hesitate to follow up when a client has passed on their name because they don't want to appear overly aggressive, says Dan Allison of Feedback Marketing Group. "When somebody tells me they gave my name out, it's my job to meet those people," he said.