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Americans are clueless when it comes to Social Security

Sep 30, 2015, 01:19 IST

FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.

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Americans aren't educated about Social Security (AARP)

The Financial Planning Association and AARP surveyed 1,279 Certified Financial Planners and 1,215 Social Security beneficiaries between the ages of 45 and 64 about Social Security, and the results were astounding. According to the results, about half of the beneficiaries surveyed are counting on Social Security to be a major source of income during retirement with 39% of those respondents believing it will equate to 50% or more their income. However, just more than 4 in 10 CFPs believe Social Security will provide their clients a major stream of income during retirement and 94% say Social Security will make up less than 50% of retirement income. Additionally, 60% of those surveyed know 62 is the earliest benefits can be claimed, but only one-third are aware waiting until the age of 70 pays you the maximum benefit. About 9% of respondents believe they are very knowledgeable about the benefits of Social Security, but only 1% of CFPs see their clients that way, the data found.

Goldman Sachs cut its S&P 500 outlook (Business Insider)

Goldman Sachs US equity strategist David Kostin lowered his S&P 500 price target to 2,000, down from his previous target of 2,100. Kostin wrote, "The impetus for these reductions is that our models now incorporate a slower pace of economic activity in the US and China and a lower oil price than we had been previously assuming." For 2016, Kostin sees S&P 500 earnings per share of $120 and a year-end target of 2,100.

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Sallie Krawcheck is launching a robo advisor for women (Business Insider)

Sallie Krawcheck, a former president of global wealth and investment management at Bank of America, is launching Ellevest, a digital investment platform aimed at women. "It's time to give women an investing experience built specifically for them," Krawcheck said. Krawcheck will take the reins as CEO while Charlie Kroll will serve as president and COO.

Regulators want to simplify fee disclosures (Reuters)

US state securities regulators are exploring ways to simplify fee disclosures. According to Reuters, the North American Securities Administrators Association introduced the model fee disclosure, which "aims to standardize how U.S. firms present information about everything from annual brokerage account fees to charges for falling below minimum balances." A recent NASAA survey found 30% of investors were unaware they were being charged maintenance fees by their brokerage firm and another 25% weren't sure.

Edward Jones advisors still work independently (Investment News)

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In the age of advisors working in teams, Edward Jones is holding onto its model of one advisor per office."That's the way you deeply serve clients," John Rahl, a principal in charge of recruiting and talent acquisition at Edward Jones, told Investment News. "You deeply serve clients by having a meaningful relationship with an appropriate amount of families that you focus on." According to Rahl, while other firms offer bonuses to those who team up with their peers, Edward Jones believes that method is too complicated, causing problems determining payouts and dividing up assets.

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