Firm Introduces Retirement Paycheck Product

The Mutual Fund Store, a network of registered investment advisers, has unveiled its Retirement Paycheck product intended to help retirees in their distributive phase.

A news release said the offering is an asset management option designed to offer predictable income, principal protection combined with the potential for unrestrained asset growth, and periodic replenishment of assets used for monthly income.

The new service is designed to minimize the impact of a market downturn on a retiree’s nest egg by establishing a pool of assets to generate predictable and monthly income. As market growth increases the value of the other part of their assets, some of it is used to replenish the value of the assets from which the income is drawn.

The service also keeps a portion of their money invested in stock and bond mutual funds.

“Our straightforward approach to helping investors manage their hard-earned assets has been successful across the country,” said founder Adam Bold.

More information is available at www.mutualfundstore.com.

Benefits Budgets Took a Hit in 2008

Fewer than half of plan sponsors said their benefits budgets increased over 2008, down from the two-thirds of those polled about their 2007 and 2006 spending, a Prudential Financial poll found.

A Prudential news release said about one-third of companies are maintaining their 2008 budget levels, while another 15% say their budgets have decreased by an average of 16% over last year.

“Employee benefits are especially crucial in uncertain times,” said Lori High, president of Prudential’s Group Insurance business “Plan sponsors need to make the most of both the company’s and the employee’s premium dollars to ensure the benefits can be maintained.” 

Additional trends include:

  • Companies hurt by the economy are altering their expectations regarding benefits staffing levels. Those affected most by the recession are forecasting a downsizing of their benefits staff over the next five years.
  • Cost-cutting measures are affecting strategic initiatives such as improving employee education and advice.
  • Using Internet technology to increase efficiency and control benefits costs will be important objectives by 2014.

“The good news is that a majority of plan sponsors and brokers have a positive outlook for 2010,” High said. “Both plan sponsors and brokers expect their companies to be doing better financially a year from now.”
 
The study was fielded via the Internet during April and May and consists of three surveys: one among benefits plan sponsors, one among benefits plan participants, and one among employee benefits brokers and consultants. The surveys were conducted for Prudential by the Center for Strategy Research, Inc., a Boston-based, independent, market research firm.

More study report is available here.

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