Alpha Fiduciary Brings on Former Pilot as SVP

John E. Kriss has joined Alpha Fiduciary Wealth Management as Senior Vice President and investment adviser.

Kriss recently completed a 30 year career as a professional pilot culminating in his early retirement from American Airlines where he served as an International Captain and Flight Standards Check Airman. In addition, he performed substantial service to his fellow pilots through work on their association’s Strategic Planning and other committees.

He is Series 65 licensed and recently received the designation of Certified Wealthcare Analyst.

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“As one who has seen firsthand the complexity of retirement decisions, I felt there must be a better approach for clients who are concerned about the quality of their retirement lives,’ Kriss said. “The independence of Alpha Fiduciary and its team commitment to excellence and integrity are of critical importance to me as I work with clients looking for quality retirement planning and business succession planning.’

Alpha Fiduciary Wealth Management is an SEC-registered investment advisory firm. More information is available at www.alphafwm.com.

Retirement Assets Exceeded $17 Trillion in 2007

Americans held $17.6 trillion in retirement assets at the end of 2007, up $1.1 trillion from year-end 2006, according to a report from the Investment Company Institute (ICI).

It was an increase of $1.1 trillion from year-end 2006 (see Retirement Assets Continue Growth in 2006).

ICI reported in the 2008 Investment Company Fact Book that strong growth in Individual Retirement Accounts (IRAs) and employer-sponsored defined contribution plans powered the 7% increase. At year-end 2007, investors held $9.2 trillion in IRAs and DC plans about half of the entire retirement market, ICI said.

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IRA assets rose 12% to $4.7 trillion in 2007. Of those assets, $2.2 trillion were invested in mutual funds. Assets held in DC plans rose 8% to $4.5 trillion, with $2.4 trillion invested in mutual funds. The most popular type of DC plans were 401(k)s, with $3 trillion in assets.

Mutual Funds

Mutual funds managed $4.6 trillion or 26% of retirement market assets. The remaining $13 trillion of assets were managed by pension funds, insurance companies, and brokerage firms.

More than 90% of mutual-fund owning households reported that they are saving for retirement. Three-fifths of mutual-fund owning households invest in funds through an employer-based retirement plan such as a 401(k), and 57% of the households that own mutual funds purchased their first fund through an employer-sponsored retirement plan.

Lifecycle Funds

Net new cash flow into lifestyle and lifecycle funds reached a record $92 billion in 2007.

Assets in lifecycle funds rose 61% to $183 billion, and 88% of these assets were held in retirement accounts. Assets in lifestyle funds reached $238 billion, of which 45% were held in retirement accounts.

401(k)s

401(k) assets invested in mutual funds are concentrated in lower-cost funds. More than three-quarters of the 401(k) assets invested in stock funds are invested in funds with expense ratios of less than 1%.

ICI publications can be accessed here.

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