Fiduciary Links: What's the value of a retirement income projection?
Posted by Bennett Aikin on December 02, 2013
>>>In his most recent piece, Professor Michael Finke looks at an idea being considered by DOL that would require plan participants be provided a monthly income projection for retirement. The idea of the projection is to inform participants on how their lump sum amount translates into monthly income, as well as further drive home the point that the lump sum probably doesn’t go as far as participants think it does.
It’s an interesting article from a policy perspective, going over the reasons for doing it (it works for increasing saving rates), the challenges of making good policy (defining assumptions is difficult, you want to be conservative while also reflecting how participants are likely to act), and why it isn’t a magic pill (it only works for those who pay attention). For advisors, the article also provides a peak into a possible future requirement and a blueprint for a value-add you may want to consider now.
>>>Our next free webinar is scheduled for next week on December 11, from 4-5 p.m. ET. In the session, we’ll be covering benchmarking and the fiduciary duty to only engage in reasonable service arrangements. The session will be co-presented by experts from fi360 and Ann Schleck & Co. Join us for the one hour session and earn CE credit for your AIF, AIFA, or CFP® credentials.
While you’re at it, you might also want to check out Ann Schleck & Co.’s Fee Almanac book, now available in the Fiduciary Store.
Now on to the rest of the week's best links:
News and columns from the leading trade, consumer, and mainstream media:
- This year’s re-balancing season means buying season for bonds [InvestmentNews]
- Despite strong recent performance, there are reasons to be cautious before investing in fracking [InvestmentNews]
- Professor Finke on how lifetime income projections can benefit plan participants [Think Advisor]
- Is it just us, or has the annual list of upcoming regulatory changes looked exactly the same for the past five years? [ThinkAdvisor]
From the organizations/associations/government/academia:
- SEC charges two advisory firms with failure to disclose principal transactions [SEC]
- SEC roundtable this week to discuss proxy service advisory firms [SEC]
- Self-employed Americans falling short in retirement saving [TD Ameritrade]
From the blogs:
- How marital status affects Social Security benefits [IN’s Retirement 2.0]
- More great Q&A from Mary Beth Franklin: “file and suspend” and undoing SS claiming mistakes [IN’s Retirement 2.0]
- Last week’s trending topics for plan sponsors [Fiduciary News]
- What to do about 401(k) leakage [Fiduciary News]
