Part of Invesco Legislative Insights series
Professional groups representing the brokerage and insurance industries filed suit last month challenging the Department of Labor’s (DOL’s) fiduciary regulation finalized in April. The rule requires financial advisors to act in the best interest of their clients in retirement accounts, but opponents say the costs of implementing this new standard would ultimately result in fewer investors receiving professional advice.
Who’s filing suit?Continue
Analyzing the successes and challenges of ‘DC schemes’
The US defined contribution (DC) system is large by global standards, but most of us in the industry know that much improvement is needed. The good news is that there are other DC systems in the world that make good case studies on a variety of issues.
The surprising Brexit outcome may have overshadowed the business landscape for now, but plan sponsors and regulators in the UK have taken some noteworthy steps to help drive better outcomes for participants that should help the long-term financial health of the nation, in my view. The following information provides an overview of the positive aspects, and shortcomings, of the UK’s DC system in addition to highlighting ways to potentially help plans in the US.Continue
Is there one right tool for saving for college?
In-state or out-of-state school? Public or private? Small or large? Long before families grapple with such college-related decisions, parents — and often grandparents — confront an important choice that could largely determine these later ones: how to save for college. And the earlier you decide the how, the better, because ABCs turn into SATs faster than you think.
Two college savings options
While there are various ways to invest specifically for college expenses, some families have begun to wonder whether Roth IRA retirement plans can do double-duty as college savings vehicles. Below, I compare Roth IRAs with 529 plans — a popular option for college savings — to help answer that question.Continue
Part of Invesco Saving for Life series
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 independenceContinue
How will you celebrate?
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 saveContinue
Part of Invesco’s Retirement Strategies series
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?Continue