‘Annuity aversion’ may limit retirement income options

Part of Invesco Saving for Life series

‘Annuity aversion’ may limit retirement income options

In a hardware store, an experienced builder selects the right tools to get a job done most efficiently, while a novice, stumped by the vast array of choices, can easily buy the wrong tool for the job. What’s the difference between a builder and a novice? Quite simply, knowledge. The more you know about the tools of the trade, the better job you can do.

Likewise with investing. Here’s an example. Although annuities can deliver what many investors say they want, some people are unsure about using an annuity as a tool to build their retirement strategy. In other words, their “annuity aversion” may limit their options to achieve the retirement they want.

Enough income and financial independence

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It’s 529 College Savings Plan Day!

How will you celebrate?

It’s 529 College Savings Plan Day!

Sunday, May 29, has been designated 529 College Savings Day to raise awareness of this unique investment vehicle, which was designed to help families build college savings on a tax-advantaged basis. The plans are typically sponsored by a state or educational institution and are named for Section 529 of the Internal Revenue Code, which defines the plans. While the tax code and the plans are not related to May 29, the day serves as a good reminder about the importance of saving for college — and the benefits 529 plans can offer college-bound families.

Sticker shock — why it’s important to save

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Small business = big opportunity

Part of Invesco’s Retirement Strategies series

Small business = big opportunity

There’s an old story about two shoe salesmen who travel to a third-world country in search of new business opportunities. The first salesman calls his wife and says, “Honey, I’m coming home. There’s no hope, nobody here wears shoes.” The second salesman calls his wife and says, “Honey, you wouldn’t believe it, there is so much opportunity. No one here is wearing shoes!”

How do you look at the opportunity?

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Mind the generation gap: Rethinking retirement

Part of Invesco Retirement Strategies series

Mind the generation gap: Rethinking retirement

While riding the London Underground last year, I was reading Get Inspired to Retire: Over 150 Ideas to Help Find Your Retirement by Invesco Consulting’s David Saylor and consultant Greg Heffington, with Susan J. Marks. I became so engrossed, I wasn’t paying attention until an announcement to “mind the gap” brought me back to reality.

The “gap” refers to the unsafe space created when a train, which is straight, stops at one of the subway’s curved station platforms. The safety warning “mind the gap” is painted along the edges of curved platforms and announced when a train arrives to prevent missteps.

From the Underground to the foreground

Because I have a retirement mindset and was reading about that subject at the time, “mind the gap” got me thinking about another kind of gap that needs minding — the generation gap as it pertains to retirement readiness.

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Final DOL fiduciary rule includes significant modifications

Rule reflects extensive feedback from industry, government and consumers

Final DOL fiduciary rule includes significant modifications

The Department of Labor (DOL) has finalized its controversial fiduciary rule, also known as the “conflict-of-interest rule,” which requires advisors to act in the best interests of clients when advising on retirement plans and IRAs. The final rule was released on April 6, 2016.

The DOL received extensive feedback from industry, consumer groups, plan sponsors, Congress, federal and state regulators and others following issuance of the re-proposed rule in April 2015, and the final rule has been modified to a significant extent to reflect those comments and concerns.

Following are some of the key changes made in the final rule:

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Planning an IRA buzzer-beater? Make sure to keep an eye on the clock.

Part of Invesco’s Retirement Strategies series

Planning an IRA buzzer-beater? Make sure to keep an eye on the clock.

As Villanova proved in this year’s NCAA championship game, there’s nothing more exciting in basketball than a game-winning, last-second shot. A successful buzzer-beater can send fans from despair to euphoria in just one tick of the clock.

For most IRA investors, the buzzer is about to sound for 2015 contributions. April 18 is the deadline1 to make a prior-year contribution to your traditional IRA or Roth IRA. And, unlike with tax filings, you can’t request a contribution extension. There’s no overtime for IRA contributions.

[The exception to this rule is for SEP-IRAs and solo 401(k)s.

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