A digest of timely information and insight about finance, investing, and retirement.
Retirement investors, riding out the panic | The New York Times
Back in August, as the stock market plummeted, a steady-as-she-goes attitude of many retirement fund investors contrasted sharply with the behavior of investors who, on cue, pulled billions out of stock funds to retreat to cash. Investors panicked, but retirement investors appeared to be a big exception.
The history of downturns holds some timeless lessons. The boring, passive approach of buy and hold has provided rewards in the stock market, but only for those people able to take the long view and hold on during stormy times.
The biggest reason workers don’t save for retirement | The Wall Street Journal
Only about half of American workers are saving for retirement through their workplace. And according to the Government Accountability Office, it’s largely because their employers do not offer savings plans like a 401(k). Those who either don’t have a retirement plan at work or don’t participate are more likely to be lower-income, less educated and to work for smaller firms. A report released by the GAO suggests that more people would take part in retirement plans if more were offered. That could help more people be better prepared for retirement and avoid relying on government programs.
Financial distraction confuses benefits decisions | Plan Sponsor
Four in 10 Americans admit knowing little or nothing about their employee benefits, according to the 2015 MassMutual Employee Benefits Security Study, part of an initiative to help educate workers about their employer-provided benefits. Millennials, Gen Xers, parents and low-income Americans find it difficult to manage finances, and 40 percent say issues with personal finance distract them while they’re at work.
Preparing for retirement with a disabled child | U.S. News & World Report
Planning for retirement is complicated, no matter what your situation. But if you have a severely disabled child for whom adulthood won’t necessarily mean financial independence, it’s even more complex. While the best bet is to consult with an experienced financial planner who can give specific advice, general tips may still apply. [Learn more about Colorado legislation supported by PERA to help PERA retirees with disabled children.]
Research reveals Social Security knowledge gap | Plan Sponsor
Close to 100 percent of Americans could lack critical information about how to get the most from their Social Security benefits, according to a survey consumers and Certified Financial Planners conducted jointly by the AARP and Financial Planning Association.
Retirement savers must plan for health care sticker shock | Benefits Pro
Couples expecting to retire this year can expect to spend nearly a quarter of a million dollars in out-of-pocket health care costs throughout their retirement.
