When ‘IRA’ means ‘I ❤ U’

Part of Invesco’s Retirement Strategies series

When ‘IRA’ means ‘I ❤ U’

In honor of Valentine’s Day on Sunday, let’s consider this question: What is love? It’s patient, kind and not boastful or proud. It’s nourished by chocolate, celebrated with flowers and decorated with red hearts. A cherubic little archer with a bow and quiver of arrows symbolizes it. Love is blind, it’s all you need, but you can’t hurry it. It makes the world go round and conquers all.

But here’s a take on love you probably haven’t heard before — for me, love is an IRA contribution.

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Considering collective investment trusts? New data shows you’re not alone

As potential benefits become clearer, a growing share of 401(k) plans have opted for the investment vehicles

Considering collective investment trusts? New data shows you’re not alone

Collective investment trusts (CITs) — pooled investment funds designed exclusively for qualified retirement plans — became even more popular last year, as they were included as one of the investment options in nearly 71% of 401(k) plans, up from 60% in 2014 and 52% in 2013, according to a recent report from research group Callan Associates.1

Mutual funds still dominate 401(k) plans, but CITs have been gaining market share. With heightened attention being placed on the decision-making process of plan sponsors, many of them have placed CITs among the investment options for the 401(k) plans they manage.

And as more qualified plans place CITs on their investment menus, use of the vehicles have skyrocketed in recent years. CITs currently account for $2.4 trillion (or 16%) of the $15 trillion invested in 401(k)-style and pension plans, up from $1.3 trillion (and 12.7% of the total) in 2009, according to the Investment Company Institute and Cerulli Associates.2

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Skip the speculation: What would a fiduciary do?

Part of Invesco’s Retirement Strategies series for IRAs

Skip the speculation: What would a fiduciary do?

W-2s are out, marking the heart of the IRA season, when more business is traditionally done than at any other time of year. And where does this occasion find many financial advisors (FAs)? They could be speculating endlessly about what the imminent Department of Labor (DOL) fiduciary rule may mean for IRAs. (Please see my earlier blog post, IRA opportunity knocks, despite DOL fiduciary rule). Truth be told, though, nobody knows or will know until the final version of the rule is released, likely in mid-March. In the interim, however, IRA opportunity is knocking loudly.

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DOL rule: OMB reviews, Congress resists

Part of Invesco Legislative Insights series

DOL rule: OMB reviews, Congress resists

The regulatory saga of the fiduciary rule continues …

On Jan. 28, the Department of Labor (DOL) submitted its controversial fiduciary standard proposal — requiring advisors to act in the best interests of clients when advising on 401(k) plans and IRAs — to the Office of Management and Budget (OMB), which is required to review “significant” regulatory actions before they become effective. Although the OMB has up to 90 days to conduct its review, observers anticipate completion well before, likely in late March or early April, because the DOL and OMB have reportedly been discussing the rule prior to its submission and the impetus from the White House to implement the rule before the Obama administration ends.

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It’s IRA season again: Three Ps for a personal best

Part of Invesco’s Retirement Strategies series

It’s IRA season again: Three Ps for a personal best

It’s here again … just as you’re becoming complacent about your New Year’s resolutions, IRA season arrives. And with the April 15, 2016, IRA contribution deadline looming, there’s no room for complacency with the three Ps that can make this season a success.

Prioritizing

To get the most out of this time, spend a little bit of it organizing.

  • Organize your space, both mentally and physically. Consider cleaning up your desk so that non-priorities won’t grab your attention and eat up your time. If something is bugging you, make a note to come back to it later; you want to be able to keep your eyes on the deadline.
  • Check your call list — spending a little time prioritizing it can save you wasted time and pay off later on.
  • Review your sales call plan. What are you saying? Scripting it in advance helps your thinking process when you’re on the phone with a prospect. What are your expectations for the call’s outcome? Having a goal in mind helps you focus on priorities.
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Annuitizing more wealth can benefit US retirees

Part of Invesco’s Saving for Life series

Annuitizing more wealth can benefit US retirees

A recent study1 from the Center for Retirement Research at Boston College looked at the importance of annuity-like income as a share of total retirement income for families age 62 and older. The study found that:

  • Many middle- and high-income families age 62 and older could significantly increase their monthly income by annuitizing more of their wealth at retirement or soon after.
  • Tomorrow’s retirees will confront a different scenario as the shift from defined benefit (DB) to defined contribution (DC) plans virtually eliminates the last vestiges of traditional DB pensions in the private sector.

The study also disclosed a couple surprises.

Is annuity-like income declining for retirees?

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