Employers kick former workers out of 401(k) plans to cut costs
A growing number of companies are kicking former workers out of their 401(k) plans if they have small balances in an effort to reduce administrative fees. "It's a barnacles-on-the-bottom-of-the-boat problem," said Spencer Williams, CEO of the Retirement Clearinghouse. Typically these workers' funds will automatically roll over into an IRA. MarketWatch
|Reasons to plan: the video your female clients must see.|
We asked 10 women to describe their experiences with aging and chronic illness. What they said may surprise you and change the way you help your clients prepare for their future.
Watch our video now at prudential.com/reasons.
Commentary: Advisers should examine a range of expense variables
Financial advisers often use a single rate of increase to calculate a client's retirement-income needs, but a more accurate method would be to consider expense variables separately, writes Waldean Wall of Allianz Life Insurance. In a series of charts, Wall illustrates the potential effects of future health care costs, income taxes, housing costs and general living expenses. A client's circumstances can amplify problems arising from flat-increase assumptions, he writes. Financial Advisor online
|The Key To Positive Cash Flow|
Every business is cyclical with cash flow ups and downs. The key is to find a way to keep the cash coming in as predictably as possible. Seem impossible? Well it's not. There are systems and processes that make it easier to collect the cash you've earned so your small business can grow. Learn how these small-business owners set up their businesses for success.
Stick with investment strategy, despite fear of loss
Throwing out a rational investment plan because the market dips or because you learn about an enticing-sounding alternative is the biggest mistake investors make, writes Carl Richards, director of investor education at the BAM Alliance. While it can seem boring, he writes, "the key to investing success is having a diversified, well-designed plan and sticking to it for a long, long time." The New York Times (tiered subscription model)
Keep financial literacy simple, relevant and fun
Financial-literacy lessons that stick are ones that aren't too complex for their audience, include reasonable goals and provide some fun along the way, says Annamaria Lusardi, head of the Global Center for Financial Literacy. "People learn by seeing things repeated, but we don't make multiple financial decisions about buying a house or going to college, so games help," she says. Kiplinger.com
|Building Workplace Trust 2015|
Interaction Associates' 6th annual research study tracking trust on the job, Building Workplace Trust, is out, and more than half of employees surveyed give their organizations low marks for trust and leadership. Yet this year's findings again point to how high trust leads to better outcomes and financial results — and even boosts innovation.
Potential pitfalls in buying a financial-planning firm
The prospect of buying an established financial-planning business may appeal to a new planner as a way to jump-start a practice or acquire clients quickly, but the matchmaking process can be tricky, writes Michael Kitces. Many potential sellers don't wish to announce their intentions, and many clients have trouble transitioning from one planner to another, Kitces writes. New planners also often fail to exercise the proper due diligence in ascertaining a firm's value, he writes. Nerd's Eye View blog
|Transformational Journeys: Modern Business Planning|
Harvard Business Review explores why CFO's and their finance organizations must adapt to the changing landscape of their markets and how big data, organizational collaboration, and new cloud-based planning and analysis technologies are driving successful change.
Click here to access the report.
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