The Markets July 21, 2014

Many Millennials Prefer Cash as Long-Term Investment

American adults under age 30 favor cash and other lower-risk assets, even as the basis of a long-term investment strategy, according to new research.
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An analysis of Bankrate.com’s Financial Security Index shows that 39% of young working adults in the U.S. say cash is their preferred way to invest money they won’t need for at least 10 years. That’s three times the number of people in the age group who picked the stock market, Bankrate.com says, despite the fact that the S&P 500 Index has posted strong gains over the past year. Most cash investment yields remain below 1%, the Bankrate.com report shows, implying Millennials who rely on cash investments could fall short on retirement income down the line.

The findings match other recent research suggesting Millennial employees and their Baby Boomer counterparts share a lot of common ground when it comes to keeping the risk level of their investments low (see “Millennial Investing Balancing Risk and Returns”). But whereas lower risk levels may be essential for Baby Boomers to protect accumulated wealth, younger workers could be playing it too safe.

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“The preference for cash and aversion to the stock market among young adults is very troubling considering this age group has the biggest retirement savings burden,” says Greg McBride, Bankrate.com’s chief financial analyst. “They won’t get [to retirement readiness] without being willing to assume a little short-term price risk in their long-term money.”

Overall, one in four Americans prefers cash investments for money that will not be needed for at least 10 years. Cash slightly edged out real estate (23%) for the top spot, while stocks came in third with 19% of the vote. Fourteen percent of Americans say they would invest in gold and other precious metals, and just five percent say they would choose bonds as a long-term investment.

The Financial Security Index also shows that four of the five components of financial security assessed by Bankrate.com—job security, comfort level with debt, net worth and overall financial situation—have shown improvement compared to last year.

Savings continues to be a sore spot for most Americans, though. The Bankrate.com index shows those feeling “less comfortable” with their savings outnumber those feeling “more comfortable” by a two-to-one margin. While men believe that they have seen improvement in their financial security over the past year, women feel their financial security has deteriorated.

The Bankerate.com Financial Security Index can be viewed in full here.

Deals & People July 21, 2014

MassMutual Names New Relationship Managers

MassMutual Retirement Services has appointed eight new relationship managers to further support retirement plan sponsor clients.
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These managers will be responsible for parts of New York, New Jersey, New England, California, Arizona, Nevada, Oregon, Washington and Alaska. The new appointments are part of a plan to increase the number of relationship managers from the current staff of 98 to a new total of 110 to help keep pace with sales efforts, says Una Morabito, senior vice president of client management for MassMutual Retirement.

The new relationship managers will be responsible for helping employers make the most of their 401(k), 457 and 403(b) defined contribution retirement plans, the firm says. The relationship managers work with employer’s on-staff decisionmakers, investment advisers, attorneys and accountants to help manage plans as effectively as possible.

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“MassMutual’s relationship managers are connection points for our network of support for employers, financial advisers and third party administrators,” says Morabito, who is based in Enfield, Connecticut. “Our relationship managers are seasoned professionals who work to make retirement plans as effective as possible and help employees prepare for retirement on their own terms.”

The new relationship managers and their territories are as follows:

Gary Bozin was named as a senior relationship manager for government-sponsored retirement plans in northern California, Oregon, Washington and Alaska. He reports to Amy Humphrey, assistant vice president, government markets. Before MassMutual, Bozin served in a variety of roles at ING, most recently as a regional vice president serving tax-exempt retirement plans. He joined ING after serving as a senior account executive for defined contribution retirement plan sales at The Hartford and as an insurance field underwriter at Mutual of New York. Bozin has 30 years of experience in financial services, earned a bachelor’s of science degree at San Francisco State University, and has FINRA Series 7, 24, 65 and 63 licenses.

Kami Falcione was named as a relationship manager for New England, serving retirement plans that rely on third-party administrators (TPAs). She reports to Craig Haase, assistant vice president, TPA Alliance. Falcione was a client relationship manager for 401(k) plans at Great West Retirement Services. She also held previous relationship management positions at DST Retirement Solutions and Bank of America, and has a total of 16 years of experience in the financial services industry. A graduate of Westfield State College, she holds FINRA Series 6 and 63 licenses.

Gregory Forte was named as a senior relationship manager for government plans in New York and New England. He reports to Amy Humphrey. Forte comes to MassMutual from ING, where he served as a client relationship manager for large corporate plans and, earlier, government plans. Previously, he worked at Putnam and Watson Wyatt and has 24 years of experience in the retirement plans marketplace. He earned a bachelor’s of science degree at Merrimack College.

Juan Dario Gomez was named as a senior relationship manager for government plans in central and southern California after serving as a retirement education specialist at MassMutual and The Hartford. He reports to Amy Humphrey. Previously, Gomez was a financial consultant for Bank of the West. He earned a bachelor's of science degree from California State University, Fresno, and holds FINRA Series 7 and 66 licenses.

Bridget Graham was named as a senior relationship manager for corporate plans in the Boston region. She reports to M. Palmer Whitney, assistant vice president in the firm's northeast division. Before joining MassMutual, Graham worked at The Hartford as a sales director for retirement plans. She also worked as a retirement education specialist, regional sales consultant and sales support associate while at The Hartford. She holds FINRA Series 6 and 63 licenses.

Shawn McGrane was named senior relationship manager for corporate plans in a territory consisting of New York City, Long Island and southern New Jersey. He reports to M. Palmer Whitney. McGrane served as a sales consultant for MassMutual Retirement and in sales and sales support roles for The Hartford’s Retirement Services Group. He earned a bachelor's of science degree from the University of Tampa and holds FINRA Series 6 and 63 licenses.

Denise Stratton was named as a senior relationship manager for corporate plans in New England and has 10 years of relationship management experience. She reports to M. Palmer Whitney. Stratton previously worked at ING as a client relationship manager and retirement plan manager and, before that, as a senior account manager at MassMutual. She has a bachelor's of arts degree from Framingham State College and a M.B.A. from the University of Massachusetts.

Kristin Stroth was named as a senior relationship manager for retirement plans served by TPAs in southern California, Nevada and Arizona. She reports to Phil Maness, assistant vice president, TPA Alliance. Previously, Stroth served in similar roles at Lockton Financial Advisors, Transamerica and John Hancock Retirement Plan Services. Stroth earned a bachelor's of arts degree at the University of Southern California and holds FINRA Series 6, 63 and 65 licenses.

More information about MassMutual’s Retirement Services Division is available here.

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