Wealth Management
Top stories summarized by our editors
10/20/2017

Clients approaching retirement age require personalized advice, as target-date funds might not be the best choice for them, Clint Barker of PGIM Investments said in a panel discussion at a recent PlanAdviser conference. Jeffrey Bograd of John Hancock Retirement Plan Services noted that tailored advice is crucial for older investors, because people "get only one chance at retirement."

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PlanAdviser online
10/20/2017

The Senate has voted 51-49 to approve a budget blueprint for fiscal 2018 that opens the door to adoption of tax cuts proposed by President Donald Trump without Democratic votes. The measure needs reconciliation with a version passed by the House before it can be submitted for Trump's signature.

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Reuters
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Donald Trump, Senate, the House
10/20/2017

The addition of in-plan annuities makes a defined-contribution retirement plan not only a savings plan but also a retirement-income plan, industry experts say. Research indicates that Americans are aware that steady income is important in retirement but not that they can reach such a goal through annuities.

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PlanAdviser magazine
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savings plan
10/20/2017

Employees contributing to 401(k), 403(b) and most 457 plans will be able to place an additional $500 in those plans next year, when the limit will increase to $18,500. The Internal Revenue Service is also raising the income ranges used to assess eligibility for deductible contributions to IRAs, contributions to Roth IRAs and the saver's credit.

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Internal Revenue Service
10/20/2017

Both supporters and critics of the Department of Labor's fiduciary rule oppose state efforts to pass similar laws. They say such laws will not be consistent and will add to regulatory burdens, and that state laws could create additional loopholes that could harm consumers.

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Financial Advisor IQ
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DOL, Department of Labor
10/20/2017

More advisors are shifting toward digital channels to connect with clients, using technology such as mobile apps that allow advisors to link accounts and show clients their full financial picture, writes Stuart DePina, president of Envestnet. Customer relationship management systems can also keep advisor-client communication secure, ensuring Securities and Exchange Commission guidelines are met.

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SEC, Envestnet
10/20/2017

"Money silence," which contributes to a lack of financial literacy, could drive the next generation to fire their financial advisors or to never hire them in the first place, says KBK Wealth Connection founder Kathleen Burns Kingsbury. Improving communication with clients and developing a relationship with them can help attract younger demographics to financial services, she says.

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Kathleen Burns Kingsbury
10/20/2017

The majority of mutual fund asset allocation in defined-contribution plans -- excluding money market and target-date funds -- is in actively managed funds, with 56% of such funds' assets invested in US equity, according to data from Strategic Insight Simfund. Retirement plan participants invested $10.3 billion in actively managed funds during this year's second quarter.

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PlanAdviser magazine
10/20/2017

Financial advisors should take advantage of data-visualization techniques to better serve clients saving for retirement, says Christopher Matzke of ICMA-RC. The tools can give advisors a look at clients' potentially ineffective investment strategies, allowing them to alert clients and educate them on how to improve their investment.

10/20/2017

Assisted living could be part of a client's retirement plan, and advisors should be prepared to help them. The median cost of assisted living in the U.S. is $45,000 per year, but Alaska and Delaware are listed as the two most-expensive states for assisted-living care, with an annual median cost of $72,000 and $72,180, respectively.