When retirees roll over assets from a 401(k) to an individual retirement account, 75% reduce their equity exposure, according to research from J.P. Morgan Asset Management and the Employee Benefit Research Institute.
The research, based on data EBRI collected and studied on 31,000 people as they entered retirement between 2013 and 2018, also found that required minimum distributions appear to be the dominant withdrawal “guidance.” The vast majority of retirees, the research found, did not take distributions before they reached the RMD age, and those older than the RMD age choose to take only the RMD amount.
“The RMD approach is inefficient,” said Katherine Roy, chief retirement strategist at J.P. Morgan Asset Management. “It does not generate income that supports retirees’ declining spending behavior and may leave a sizable account balance at age 100.”
Another key finding was that income and spending in retirement are highly correlated. As income increases with the start of Social Security and RMDs, spending increases, with households that have regular income from an annuity and/or a pension spending more even if they have similar levels of observable retirement wealth.
Eliseo Prisno, a former Merrill advisor, allegedly collected unapproved fees from Filipino clients by secretly accessing their accounts at two separate brokerages.
The Harford, Connecticut-based RIA is expanding into a new market in the mid-Atlantic region while crossing another billion-dollar milestone.
The Wall Street giant's global wealth head says affluent clients are shifting away from America amid growing fallout from President Donald Trump's hardline politics.
Chief economists, advisors, and chief investment officers share their reactions to the June US employment report.
"This shouldn’t be hard to ban, but neither party will do it. So offensive to the people they serve," RIA titan Peter Mallouk said in a post that referenced Nancy Pelosi's reported stock gains.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
