Collective trusts: The truth about documents and reporting

Correcting common misconceptions about these retirement plan vehicles: Part 2

Collective trusts: The truth about documents and reporting

Misperceptions abound about collective investment trusts (CITs), also known as collective trust funds. In my last blog, Collective trusts: The truth about regulations, transparency and eligibility, I corrected three common myths about these vehicles. Below, I provide the true story behind two more critical topics: documents and reporting.

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What’s on your summer reading list?

Part of Invesco’s Retirement Strategies series

What’s on your summer reading list?

Whenever I think of summer, I think of the summer reading list. In high school, those thoughts tended toward dread of Dostoyevsky’s 600 pages of unpronounceable names or fear of Faulkner’s ferociously difficult book your older sibling warned you about. But now summer reading lists conjure thoughts of lounging poolside or on the beach with books I look forward to reading. An added plus: My e-reader allows me to carry all the books on my list in digital format, so I don’t have carry a heavy backpack when I travel.

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DOL fiduciary rule draws fire from financial services industry

Part of Invesco’s Legislative Insights series

DOL fiduciary rule draws fire from financial services industry

Many readers have been closely following the progress of the reproposed fiduciary regulation issued this year by the Department of Labor (DOL).  As you’re probably aware, the regulation would broaden the definition of fiduciary with respect to providing investment advice to a retirement plan, plan sponsor, plan participant, beneficiary or IRA owner. The proposed rule has generated intense scrutiny and controversy because it, in effect, expands the universe of people who would have to acknowledge assuming the ERISA fiduciary standards of skill, care and prudence and put the best interests of their clients first.

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Boomer bust: Retirement reality check drives interest in annuities

Part of Invesco’s Saving for Life series

Boomer bust: Retirement reality check drives interest in annuities

A quick Internet search of “retirement readiness” turned up a litany of heads-up adjectives: unsettling, sobering, alarming, troubling. And the message appears to be sinking in as baby boomers take a long, hard look at their retirement readiness — and often get an unwelcome reality check on how financially unprepared for retirement they may be.

In fact, the percentage of boomers who feel extremely or very confident they’ll have sufficient savings to last through retirement has declined to 27% in 2015 from almost four in 10 in 2011, according to the Insured Retirement Institute (IRI).1 Moreover, only 19% of boomers have saved $250,000 or more for retirement, while four in 10 have no retirement savings.1

As you can see, the looming retirement readiness shortfall warrants those disconcerting descriptions.

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Fatherly financial advice

Part of Invesco’s Retirement Strategies series

Fatherly financial advice

As Father’s Day approaches, I second guess myself by wondering if my kids — now in their 20s — really absorbed the sound financial advice I tried to impart repeatedly as they were growing up. Lest they mistake good advice for lecturing or nagging, I tried to keep it short, simple and easy to carry with them into early adulthood, when they can either set themselves up for financial success, or all too often, shoot themselves down for years to come. Here’s my advice for financial fledglings approaching the temptations of their 20s.

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Fiduciary fallout: Proposed rule rattles IRA market

Part of Invesco’s Retirement Strategies series

Fiduciary fallout: Proposed rule rattles IRA market

The proposed fiduciary rule issued by the Department of Labor (DOL) in April is controversial for good reason — it extends fiduciary status to any individual who receives compensation for providing advice to individuals, plan sponsors, plan participants or IRA owners for consideration in making a retirement investment decision.

And the proposal is potentially a game changer for the IRA marketplace. For the first time, any advisor who is paid to provide individualized advice — for example, what assets to purchase or sell in an IRA or whether to roll over a 401(k) plan balance into an IRA — would be considered a fiduciary. That change in status would likely change the dynamics of the advisor/client relationship, with advisors and brokers having expanded responsibilities and, consequently, incurring additional costs.

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