REUTERS/Michael Spooneybarger
Millennials have a false sense of security about retirement (Personal Capital)
Personal Capital's annual Retirement Readiness Survey found that 40% of millennial respondents don't have a retirement savings account, and 73% don't know their net-worth. At the same time, 34% of millennials respondents said they feel hopeful when looking at the balance of their retirement savings account.
"This disconnect shows that Millennials may have a false sense of security around their current savings and are at risk of not reaching the retirement goals they're hoping for," the report notes.
"Millennials are oblivious to the $14 trillion retirement crisis facing America," said Personal Capital CEO Bill Harris. "They're dangerously assuming that retirement planning can start tomorrow, instead of today. We've found that millennials are banking on working just 15 years, and many plan to live on inheritances during retirement - it's delusional."
3 Republican senators have joined forces to kill the DOL's fiduciary rule (InvestmentNews)
Senators Johnny Isakson of Georgia, Lamar Alexander of Tennessee, and Mike Enzi of Wyoming released a joint statement saying they have introduced a resolution to stop the implementation of the Labor Department's new fiduciary rule.
InvestmentNews' Christine Idzelis reports that the senators believe the regulation "will make retirement planning unaffordable for low- to middle-income Americans whose accounts are not valuable enough for advisers to take on the new legal liability created by the rule."
Wirehouses and banks control almost 75% of high-net-worth client assets in the US (Think Advisor)
A new report from global analytics firm Cerulli Associates found that wirehouses and banks control 72% of the assets of high-net-worth clients in the US, reports Emily Zulz.
"As of year-end 2014, wealth managers controlled approximately $8 trillion in HNW and ultra-high-net-worth (UHNW) client assets," Donnie Ethier, associate director at Cerulli, said in a statement.
The American dream is "no longer in reach" (Legg Mason)
The team at Legg Mason interviewed 500 affluent US investors to see how they defined the new American Dream. The three most popular answers included feeling financially secure, the freedom to live how they want to, and being able to retire at 65 and live comfortably into old age.
However, 55% of respondents also believe that this new American Dream is no longer in reach. Notably, 62% of Baby Boomers believe the dream is unattainable.
Morgan Stanley's creating a team to help its brokers figure out the DOL rule (Reuters)
Morgan Stanley "has formed a so-called Fiduciary Standard Help Desk made up of more than 10 employees who will answer calls and questions that its financial advisers may have about the rule," reports Olivia Oran.