From NPR News
The first thing to realize about financial advice is that it’s not free — and it often costs more than you think. That’s what Morra Aarons-Mele found when she decided to find a financial adviser after she inherited an IRA from her father.
Click to read more
From KUSI News
San Diego taxpayers are already on the hook for more than $2 billion in pension debt because the city increased pension benefits while paying less into the system.
Click to read more
Plans such as 401(k)s and their ilk have been part of the retirement landscape for decades, and discussions of their pros and cons relative to traditional pensions go back even further.
Now researchers have gone from the theoretical to the concrete and examined exactly how employees respond when their traditional pension plan is replaced. It’s not pretty.
The new plan they examined, for employees of the state of Utah, was less generous than the pension plan it replaced, but few employees took steps to supplement their retirement savings. Affected employees also began leaving their jobs at a faster rate.
Prepare, Plan, & Protect your clients future. Click here to increase your knowledge base & book of business.
Some 150 state and local pension funds reported assets under $3 trillion to cover the estimated $4.1 trillion needed to pay benefits.
Continue reading State budget balancing is putting pensions at risk
More depressing news for workers who depend on a pension to fund their retirement: State-run pension funds faced a $968 billion shortfall in 2013, up $54 billion from the year prior, according to a new report by The Pew Charitable Trusts. When local pension fund shortfalls are factored in, the total pension funding gap surpasses $1 trillion.
“Policy makers are going to need to find a way to address [this funding gap] and it’s going to have to come down to some kind of plan to pay it down in an orderly fashion,” said David Draine, a senior researcher at Pew Charitable Trusts.
Click here for tools and other resources that will help you serve your client’s retirement needs.
Click here to view the full article