Products August 23, 2010

Mesirow to Provide Strategic Asset Class Models for ABG

Mesirow Financial has been engaged to provide strategic asset allocation models for participants in client plans offered by Alliance Benefit Group (ABG). 

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A press release said Mesirow Financial’s Investment Strategies group will provide two-tier strategic asset class models, based on the sophistication of plan participants. Mesirow Financial’s risk-based asset allocation models are designed to help clients manage risk and maximize return by diversifying across a comprehensive set of asset classes.   

“Offering this service to our plan participants strengthens our relationships with clients and enhances their ability to make informed allocation decisions,” said John Blossom, president at ABG, in the announcement.

ABG provides administration services to over 7,000 plans representing more than $14 billion in assets and 440,000 participants. More information is at http://www.abgfs.com.  

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Data & Research August 23, 2010

More Younger Investors are Making the Conversion to Roth IRAs

In an analysis of households that have converted to a Roth IRA, Fidelity Investments has found that a growing number of younger investors are making the conversion. 
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The number of customers making the conversion between the ages of 35 and 49 has more than doubled – from 15% in 2009 to 31% in 2010. On the other hand, investors ages 50 and over have been turning away from the Roth IRA conversions, with 75% a year ago to 55% today. And even fewer retirees – investors over the age of 65 – are making the Roth IRA conversion. There were 19% fewer conversions among retirees from 2009 to 2010.  

In the analysis, Fidelity Senior Vice President Chris McDermott says that while Fidelity is pleased to see the number of younger people making the switch to a Roth IRA, it is equally important for older investors to be considering the benefits as well.   

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Fidelity expects that the popularity of Roth IRA conversions will continue to rise as people become more aware of the potential tax benefits. And to meet the needs of this growing trend, they have launched a new podcast on Fidelity.com to help investors understand the process of the conversion and weigh the potential benefits.   

 

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