FINANCIAL ADVISOR INSIGHTS: American workers are costing themselves billions each year by not taking advantage of employer retirement matching
US workers are failing to take full advantage of employer retirement matches (Reuters)
Research provided by 401(k) adviser Financial Engines shows US workers are failing to take advantage of at least $24 billion in employer retirement matches each year. Reuters reports the study found, "One in four retirement plan participants misses out on some or all of the match, costing themselves an average $1,336 annually." The study also concluded younger workers are less likely to take advantage of employer matching as those under 30 are more than twice as likely as someone over 60 to not participate in a plan.
A look at Republican presidential candidate Ben Carson's flat tax proposal (Bloomberg)
Retired neurosurgeon and Republican presidential candidate Ben Carson believes the US should adopt a flat tax, partly because poor people "don't want to be just taken care of." Bloomberg notes, "The theory of the flat tax is that it preserves incentives to work and invest because people don't have to pay punishingly high rates on each extra dollar of income." While details of Carson's proposed flat tax remain sketchy, the plan would almost surely raise taxes on the poor and lower them for the wealthy. One way Carson could get around that is by including a tax exemption for the first X amount of dollars of earnings for all taxpayers.
How to minimize the risk of student loans (Wealth Management)
With student loan debt outstanding now up to $1.2 trillion, Wealth Management provides some tips to minimize the risk of student loans. First and foremost, students should understand what they are signing up for. Once they understand what their debt burden will be upon graduation, students should apply for grants and scholarships to minimize their debt, and then try for federal loans before private loans. Students should never assume the Federal Student Loan program has their best interest in mind. For the rest of the list, click the link above.
Radio hosts misled investors about knowledge of life settlement products (Think Advisor)
The Securities and Exchange Commission has charged Novers Financial and its principals, Christopher A. Novinger and Brady J. Speers, who host a weekly radio show called the "Retirement Experts Radio Show," with fraud for selling "life settlement" investments. Novinger and Speers allegedly sold $4.3 million worth of life settlement products to 26 investors despite possessing "little to no training relating to securities and non-insurance related financial products, including life settlements." The SEC complaint also suggests the duo used a bogus "net worth calculator," which allowed some clients to improperly qualify for the products.
Merrill Lynch lost two advisors to Steward Partners (Financial Planning)
The exodus from Merrill Lynch continues. Two advisors are taking their $165 million in assets under management to Steward Partners, a firm affiliated with Raymond James Financial Services. Steve Bricker is bringing approximately $100 million in AUM while John Pappas has about $65 in AUM. "It just wasn't the same place anymore," says Pappas. He continued, "It took me about a year and a half before I made a decision."