That nerve-racking moment when a retiree realizes their money's running out
How to deal with running out of money during retirement (Financial Planning)
Financial advisors should begin addressing the issue of a client running out of money once they begin to increase the withdrawal rates from their savings. Michael Lecours, an advisor at Ohanesian/Lecours, suggests, "We can see the writing on the wall five to 10 years away." He continued, "After a conversation, most clients recognize the issue and find ways to reduce their expenses. They make plans to downsize, move in with a family member, or scale back on their lifestyle." What happens if a client runs out of money? They likely end up with being cared for by a family member, or enter a Medicaid-funded facility.
Financial advisors and millennials couldn't care less about one another (Bloomberg)
Research released by Corporate Insight shows only 30% of advisers are actively looking for clients under the age of 40. Most advisers are shying away from millennials, opting to collect the assets of baby boomers, who, according to Federal Reserve data, own 22 times more assets than those under the age of 35. Interestingly, millennials remain equally uninterested in signing on with an adviser. According to Bloomberg, an IQuantifi survey taken in April showed just "29% of young workers have looked to professionals for advice."
Shark Tank's Kevin O'Leary says only his companies run by women are making money (Business Insider)
Shark Tank investor Kevin O'Leary says of the 27 companies he is invested in, the only ones making money are run by women. O'Leary told Business Insider, "All the cash in the last two quarters is coming from companies run by women." He continued, "I don't have a single company run by a man right now that's outperformed the ones run by women."
Japan's fight for inflation (Vanguard)
The Japanese economy has suffered through two decades of weak growth brought on by the collapse of prices in the early 1990s. After failing to spark en economic revival in the early 2000s, the Bank of Japan launched a more aggressive round of monetary easing. The weaker yen and closing of the output gap provoked some signs of inflation, but progress has been impeded by the recent decline in oil prices. According to Vanguard, "Japan's wage-growth puzzle is that even as the labor market is tight with the unemployment rate falling, wage growth has been modest. In particular, a large part of the recent wage hike is due to bonus payments, which are perceived to be transitory and unlikely to feed into expectations for long-term inflation."
Lawmakers are hoping to extend fiduciary comment period (Think Advisor)
Lawmakers in both the House and the Senate have submitted requests to Labor Secretary Thomas Perez to extend the fiduciary comment period another 45 days. Both chambers of Congress have requested more time because of the complex language in the proposal. However, fiduciary advocates are calling on Perez to push forward with the original deadline, arguing, "There is no justification for further delay in the effort to close the loopholes in the DOL's outdated rules that are costing American workers and retirees tens of billions of dollars annually."