Briefly Noted Articles

Rethinking Retirement Strategies

A column in Research magazine says a well-planned retirement lifestyle has a greater impact on happiness than the amount saved. Read more »

IRA Withdrawals: Who and How Much?

Retirees are not the only ones taking withdrawals from individual retirement accounts (IRAs). An analysis by EBRI found that individuals aged 54 or younger owned 22.1% of IRAs with a withdrawal made in 2011. Read more »

High CEO Compensation Hurts Shareholders

An analysis of mostly S&P 1500 Super Composite firms found a negative correlation between size- and industry-adjusted CEO compensation and future one- and three-year share price performance. Read more »

Be Aware of IRA Rollover Rules

A tax court case cast a light on the rules governing and the prudence needed for individual retirement account (IRA) rollovers. Read more »

Seven Rookie Retiree Mistakes to Avoid

USA Today asked financial experts to list the biggest mistakes people make during their first year of retirement and then narrowed down the list to seven key missteps. Read more »

Considerations When Rolling Over a 401(k) to an IRA

A key decision a person must make when leaving a job is what to do with workplace retirement savings. Read more »

Sources of Tax-Free Income

Though most income and compensation is subject to federal taxes, not all of it is. J.K. Lasser identified 25 sources of tax-free income. Read more »

Panel Advises Against Mandated Spreads for Small-Cap Stocks

Mandating wider bid-ask spreads for small-cap stocks may unfairly hurt individual investors, according to the SEC's Investor Advisory Committee. Read more »

The Top Proxy Issues of 2013, and Likely 2014

IR Magazine, which covers investor relations from a global perspective, compiled a list of the top trends from 2013’s proxy season and predicted what shareholders and corporations could see in 2014. Read more »

Companies Play Favorites to Hide Bad News

Corporate executives selectively choose which analysts they interact with during conference calls to avoid unwanted questions. This “casting” of calls happens when there is potentially bad news a company does not want highlighted, according to Harvard researchers. Read more »

The Cloonan Award for Excellence in Investment Education

James Cloonan founded the American Association of Individual Investors in 1978 with the clear understanding that individual investors have unique investment needs and opportunities. To honor Jim’s work in the field of investment education and research for the individual investor, AAII’s board of directors has established a new award. Read more »

Stocks May Be Unscathed by Baby Boomer Retirees

The retirement of the baby-boom generation should not be a drag on stock prices, according to an analysis by Vanguard. Read more »

The Health Impact of Working in Retirement

Working has a mixed impact on a retiree’s health, according to economics researcher Tunga Kantacri of Tilburg University, Netherlands. Read more »

Proxy Recommendations Driving Equity Compensation

Many corporations adjust their equity compensation plans to match the targets set by proxy adviser Institutional Shareholder Services (ISS), according to researchers who are affiliated with Harvard University and Stanford University. Read more »

AAII Model Shadow Stock Portfolio: Emergency Sale of FAB Universal Corp. (FU)

Due to allegations raised that FAB may have issued materially misleading business information to the investing public, FAB Universal (FU) is being removed from the Model Shadow Stock Portfolio. Read more »

Increase Equity Exposure Throughout Retirement

Raising exposure to stocks throughout one’s retirement may reduce both the probability of running out of money and the magnitude of any shortfalls. Read more »

Social Networks Can Influence Portfolio Allocations

The financial knowledge of the people you interact with can impact your portfolio allocation decisions, especially if you and they are financially literate. Read more »

Director Pay Rises 4.5%

Pay for serving on a corporation’s board of directors continues to rise. Read more »

Investing’s Seven Sins

Kiplinger put together a list of the seven biggest missteps investors make. Read more »

The Brain’s Reaction to Market Bubbles

Thinking you know what the intentions of other investors are could put you at greater financial risk during bubbles. Read more »

Conference Calls Get Grouchier in the Afternoon

Afternoon earnings conference calls tend to be more negative, irritable, and combative than those held in during the morning hours. Read more »

Adjust Savings Rates as Income Rises

An adjustable approach to retirement savings may improve the odds of success, according to researchers at Dimensional Fund Advisors. Read more »

More Stocks, Fewer Options Awarded

More companies are awarding full-value shares of stock instead of options and are linking executive compensation to the achievement of specific goals. Read more »

Prenuptial Agreements May Not Waive Beneficiary Rights

The mere inclusion of a clause in a prenuptial agreement to waive beneficiary rights to a 401(k) plan’s proceeds is not enough to enact an actual spousal waiver. Read more »

Dementia and Financial Decision Making

The impact of a memory disease diagnosis on a couple’s finances depends on how actively the couple controls their retirement accounts. Read more »

Inherited Non-Spousal IRAs Bankruptcy Exemption Questioned

Inherited non-spousal individual retirement accounts (inherited IRAs) are not protected under the federal bankruptcy code, according to a recent ruling. Read more »

The Good and Bad of Large 401(k) Plans

Large 401(k) plans, ones with numerous investment choices, can be good for the employer, but bad for the employee. Read more »

On the Bookshelf

Comments on new investing books. Read more »

The Biggest Retirement Investing Mistakes

Bankrate.com recently published a list of the seven biggest retirement investing mistakes and advice on how to avoid them. Read more »

On the Bookshelf

Comments on new investing books. Read more »

Income Is a Challenge for Investors Worldwide

Four in 10 investors worldwide are generating less income than they hope for, according to Legg Mason. Read more »

Pension and Settlement Streams Raise Regulatory Concerns

Concerns about pension and settlement income streams prompted an investor alert from regulators. Read more »

Postpone Retirement for Your Health

Retirement leads to poorer health, according to a study by Britain’s Institute of Economic Affairs. Read more »

The Difficulty of Rolling Over 401(k) Savings

Workers are both inadvertently and purposely encouraged to roll over their 401(k) plans into individual retirement accounts (IRAs) when changing jobs. Read more »

On the Bookshelf

Comments on new investing books Read more »

A Lack of Openness Between Advisers and Investors

A report from analytics firm Cerulli Associates revealed differences in how investors and financial advisers perceive their financial relationship. Read more »

Big Ad Spending Not Influencing Retirement Savings Behavior

Americans remain unprepared for retirement, even though the financial services industry spent $1.14 billion in 2011 advertising retirement planning products and services. Read more »

Proposals to Reform Money Market Funds

Three proposals to reform money market funds were the subject of a letter from the presidents of 12 Federal Reserve banks to the Financial Stability Oversight Council. Read more »

If Your 401(k) Could Talk…

Actuarial consultant Milliman imagines your 401(k) plan would bring up 10 important points if it could talk. Read more »

Investors Uncertain, But Saving and Budgeting More

Nearly half of affluent investors expect today’s economic uncertainty not only to continue, but also to be “more of a permanent reality,” according to the latest Merrill Lynch Affluent Insights Survey. Read more »

Worries About Retirement Spread

More Americans are worried about having enough saved for retirement, according to the Pew Research Center. Read more »

Questioning High Approval Rates for Executive Compensation

Overwhelmingly, shareholder votes are approving executive compensation. Read more »

On the Bookshelf

Comments on new investing books Read more »

Retirement Savings Advice From Retirees

Fifty-four percent of current retirees are confident they will be able to live comfortably throughout retirement, in contrast to only a quarter of those below the retirement age and currently employed, according to a new survey. Read more »

On the Bookshelf

Comments on new investing books. Read more »

Retirement Savings Have Not Adjusted to Changed Risks

Americans’ ratio of wealth-to-income declined in 2010, based on an analysis of the Federal Reserve’s triennial survey of household wealth. Read more »

401(k) Changes Leading to More Participation and Diversification

Changes in the 401(k) landscape have resulted in employee participation rates remaining high and leading to more diversification, according to an Aon Hewitt study. Read more »

Emerging and Persistent Investor Threats Named

The list of potentially dangerous financial products and practices updated by the North American Securities Administrators Association (NASAA) includes practices designed to exploit new and existing federal laws. Read more »

Ready for Retirement at Age 65? 70?

A study cited by the Employee Benefit Research Institute (EBRI) cast doubt on whether most Americans will be ready to retire at age 70, let alone age 65. Read more »

The Impact of Experience on Performance

Individual investors adapt their trading strategies over time, but only partially learn from their mistakes. Read more »

On the Bookshelf

Comments on new investing books. Read more »

Poor Advice About Social Security

When to start taking Social Security benefits is a difficult decision that has a significant impact on retirees. Yet, a new working paper finds that individuals who turn to financial advisers for help are often misguided. Read more »

Forthcoming Changes in Employee Benefits

Employees, and possibly even retirees, could be looking at higher expenses, but potentially more choices, when it comes to benefits. Read more »

From the Bookshelf

Comments on new investing books Read more »

401(k) Plans Changing, But Not Communication

The big trend among employer-sponsored retirement plans is automatic features. Read more »

Target Date Funds Growing in Popularity

Target date funds are growing in popularity among defined-contribution participants, according to Vanguard. Read more »

Bad Behavior in the Financial Industry

A sizeable number of financial services professionals said they have either observed, have firsthand knowledge of or feel pressured to engage in unlawful or unethical behavior, according to a new survey. Read more »

From the Bookshelf

Comments on new investing books. Read more »

Look Beyond Asset Allocation for Retirement Security

Asset allocation is an important part of investing—but it is not the most effective option to ensure financial security in retirement, according to the Center for Retirement Research at Boston College. Read more »

Retirement Strategies for Volatile Markets

Volatile and uncertain market conditions are particularly troublesome for those who have recently retired or are near retirement. Read more »

Gender Gap in Financial Literacy Is Growing

The gap between men and women in knowledge and awareness of personal finances is growing, according to a new survey by Financial Finesse. Read more »

Early Retirement, Early Death?

A study by Josef Zweimuller, Andreas Kuhn and Jean-Philippe Wuellrich at the University of Zurich suggests that early retirement could lead to an earlier death. Read more »

Five Steps for Increasing Retirement Income

Fidelity Investments modeled five steps that investors of all ages can use to increase their retirement income. Read more »

From the Bookshelf

Comments on new investing books. Read more »

Mutual Fund Fees Decline, Slightly

Average expense ratios for mutual funds that primarily invest in stocks declined four basis points last year, according to the Investment Company Institute (ICI). Read more »

Are Financial Advisers Encouraging Bad Behavior?

Not only do many financial advisers fail to discourage behavioral finance errors by investors, but many advisers also reinforce behaviors that are in their own best interest, according to a new working paper published by the National Bureau of Economic Research. Read more »

Americans Worried About Retirement Savings, But Saving More

The proportion of Americans who are worried about not having saved enough money for retirement is increasing, according to The 2012 Scottrade American Retirement Study. At the same time, more Americans are seeking ways to save more money. Read more »

Be Wary of Crowd Funding Start-Ups

Later this year, or early next year, you will have the chance to buy shares in privately held companies through a process known as crowd funding. If an offering seems interesting, tread carefully, do as much research as you can and only commit money you can afford to lose. Read more »

From the Bookshelf

Comments on new investing books. Read more »

Life Spans, Health Care Costs and Rethinking Retirement

Three out of four affluent Americans would change how they approach money management if they knew they would live to be 100, according to the Merrill Lynch Affluent Insights Survey. Read more »

10 Tips for Getting More out of Your IRA

The effectiveness of an individual retirement account (IRA) can be maximized through a combination of strategic planning and careful decision-making. Read more »

Target Date Funds Misunderstood

A survey by ING revealed gaps in investor understanding of how target date funds are designed, how they are managed, and what they are designed to do. Read more »

Investments That Concern FINRA

The Financial Industry Regulatory Authority (FINRA) recently listed several types of investments with heightened conduct and suitability issues. Read more »

On the Bookshelf

Comments on new investing books. Read more »

A Majority of Advisers Are Investment, Not Financial, Planners

Many advisers are misclassifying the types of services they provide, according to Cerulli Associates. Read more »

Current Conditions Alter Future Expectations

Researchers at the University of Michigan found that expectations for future events are influenced by current economic conditions. Read more »

Younger and Older Investors Use Conservative Allocations

Retirement investment styles are not differing by age group, according to a survey of nearly 600 higher education employees by Fidelity Investments. Read more »

Baby Boomers and Stock Valuations

Will the retirement of baby boomers impact the valuations of stocks? Research published by the Federal Reserve Bank of San Francisco argues it may. Read more »

From the Bookshelf

Comments on news investing books. Read more »

Age and Reactions to Financial Advice

How a person reacts to financial advice depends on age, according to a preliminary study conducted by The College of William & Mary’s Mason School of Business. Read more »

Bond Commissions Are Misunderstood

Bond commissions are a mystery to many investors, according to a study conducted for Charles Schwab. Read more »

The Impact of Online Forums on Financial Decisions

Participation in online communities can lead to riskier financial decisions. Read more »

What Defines a Bear Market?

The severity of a market fall determines how it is categorized and helps to provide a sense of how quickly a rebound may occur. Read more »

Regulators Warn About Self-Directed IRAs

A recent increase in fraudulent investment schemes involving self-directed individual retirement accounts (IRAs) has caught the attention of regulators. Read more »

Understanding the Impact of Compounding Increases Savings Rates

Knowing how big of an impact compounded returns will have on retirement savings can prompt investors to save more money. Read more »

Fidelity Top Choice for IRA Rollovers

Investors who recently rolled over their 401(k) plan to an IRA chose Fidelity more than any other brokerage firm, according to a recent survey by Millionaire Corner/Spectrem Group. Read more »

Protecting Elders From Financial Abuse

Investors can call for free advice and guidance on how to protect themselves and loved ones against financial abuse and scams on November 10, 2011. Read more »

From the Bookshelf

Comments on new investing books. Read more »

Couples Lack Communication on Retirement Goals

Less than half of couples jointly handle retirement savings investment decisions, according to a new study by Fidelity Investments. Read more »

From the Bookshelf

Comments on new investing books. Read more »

Marital Status and Retirement Preparation

Marital status has a big impact on how prepared an individual is for retirement, according to a working paper published by Michael Hurd and Susann Rohwedder of the RAND Corporation. Read more »

SEC Issues Family Office Rule

The U.S. Securities and Exchange Commission (SEC) adopted a new rule defining “family offices.” Read more »

The Recession and Retirement Income

The “Great Recession” of 2007–2009 will reduce average annual incomes at age 70 by 4.3%, or $2,300, according to the Center for Retirement Research at Boston College. Read more »

The SEC Warns About Reverse Mergers

The U.S. Securities and Exchange Commission (SEC) issued a bulletin about reverse mergers in early June. The bulletin provided information about reverse mergers and advice on how investors can protect themselves. Read more »

From the Bookshelf

Comments on new investing books. Read more »

Researching Adviser Fees Gets Easier

The U.S. Securities and Exchange Commission (SEC) has made it easier for investors to look up and compare financial adviser fees and policies. The Form ADV Part II Brochure now discloses information that advisers previously did not have to include in regulatory filings. Read more »

Briefly Noted

Current news items of interest to individual investors. Read more »

Briefly Noted

Current news items of interest to individual investors. Read more »

Briefly Noted

Current news items of interest to individual investors. Read more »