Data & Research January 11, 2010

For One Group, Anyway, Economy Not Affecting Retirement Strategies

A new survey indicates that the economic downturn hasn’t done much to shake up the retirement plans of some women.
Reported by

In fact, the Transition Network’s 2009 member survey revealed that a large percentage of its membership—women over 50 with at least a bachelor’s degree—have not changed their spending or their retirement strategies despite the recent economic downturn.  Less than a quarter (22.9 %) reported returning to work or delaying retirement because of the down economy, and only about one-in-10 reported changing their spending habits—even though they are not returning to work.      

Indeed, nearly half of the women in the survey (41.4%) chose to retire or took advantage of early retirement packages, followed by 23.4 % who are still employed in their primary careers and 22.5 % who “(c)hose a new role for personal/lifestyle changes.” Only 12.8 % were downsized or transferred to a less desirable position.

‘Source’ Spots      

For the vast majority (82%), Social Security will be “a significant part” of their retirement income, with pensions, 401(k)s, and IRAs playing “a significant part” for about 55% each. “Other investments” account for 66.3 % of their retirement income, with only 10.7 % reporting real estate as one of them.  That said, while 44% were “confident I will be able to maintain my current lifestyle,” nearly an equal amount reported that “I may have to live at a reduced lifestyle.”     

The Transition Network (TTN) is a national organization of women older than 50 and has chapters in nine U.S. locations. Half of TTN’s membership responded to the survey, with the largest numbers of respondents from New York and Washington, D.C.  More than 80% of the women in the Transition Network (TTN) survey are between ages 56 and 70, and 92.3 % have a college degree of bachelor’s level or above.

Products January 11, 2010

Social Networking Site for Advisers Says It’s FINRA-Compliant

The new social networking site linkedFA said it is the “first and only FINRA-compliant social networking site for financial professionals.”
Reported by

The site is planning to launch later this month, following an invitation-only pre-launch registration for early adopters.

linkedFA is a social networking site for financial advisers, registered representatives, registered investment advisers (RIAs), insurance advisers, and financial planners. The site allows advisers to connect with investors, clients, and peers.

The company said in a news release that it offers “all the social media and client relationship building benefits of social networking sites, while addressing the regulatory needs of the financial community including, but not limited to, FINRA-required compliance, supervision, and recordkeeping features.” linkedFA also complies with document retention rules under 17a-3 and 17a-4 of the Securities Exchange Act 1934. All communication relating to business will be kept for more than six years and all records will be maintained as per Rules under 17a-3, the company said.

linkedFA said it incorporates proprietary reputation management software in order to separate personal and private information with secure access for diverse audiences and uses the highest security standards to protect users from unauthorized disclosure of information.

While regulators have not provided direct guidance about social networking, Richard Ketchum, Chairman and CEO of FINRA, recently announced the establishment of a FINRA Social Networking Task Force  (see “Think before You Tweet” and “FINRA Forms Social Networking Task Force”). Ketchum cited regulatory challenges to Web. 2.0 innovations, such as the difficulty archiving communications.

linkedFA was developed in anticipation of the market need for a compliant social networking site, the company said. “Financial professionals want to use social networking to connect and interact with clients,” said linkedFA CEO Brian Byrne, in the release. “By using linkedFA, financial professionals can do more business, attract investors, and enhance their professionalism.”

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