The Markets June 24, 2010

College Mistakes: Financial Advisors List the Worst

A recent study polled financial advisors to discover the worst financial mistakes made by college students.  
Reported by

Although the U.S. Department of Education’s new Direct Loan program may make college more affordable for some, mismanaged personal finances could lead to greater problems for future financial security. A survey of more than 340 First Command Financial Advisors revealed their greatest concerns: 

  • 75% reported spending without a budget and credit card debt; 
  • 60% reported overall debt; 
  • 48% reported not having enough savings; 
  • 41% reported not having a plan for the future; 
  • 40% reported lacking knowledge of financial issues.  

“The economic downturn has been a wake-up call for many Americans [to make] meaningful, long-term changes in their household finances,” said Terri Kallsen, CFP and executive vice president of strategic development at First Command. She warned that many college students and recent graduates, however, “may not yet have the life experience and judgment to properly manage [loans or related products].”  

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First Command Financial Services provides financial planning services and investment products. To learn more about this survey, visit www.firstcommand.com/education. 

Deals & People June 24, 2010

Standard & Poor’s Licenses S&P 500 to Vanguard

Standard and Poor’s announced today that the S&P 500 Index will serve as the basis of a forthcoming Vanguard Exchange Traded Fund (ETF). 
Reported by

According to a recent press release, the S&P 500 is among the most widely followed gauges of U.S. equity markets. According to Alex Matturri, Executive Managing Director at S&P Indices, “The S&P 500 has served as the cornerstone for the global development of ETF products… since it was first published in 1957.” The Index has over $4.83 trillion benchmarked to it globally and an estimated $1.1 trillion index, claimed the press release.  

The licensing agreement also enables Vanguard to launch eight new equity funds and ETFs targeting the growth and value segments of the Index, as well as those relating to the S&P MidCap 400 and S&P SmallCap 600 (see Vanguard to Expand Index Offerings at http://www.planadviser.com/Vanguard_to_Expand_Index_Offerings.aspx). The agreement, claimed Matturri, “underscores Standard & Poor’s commitment to providing global investors with greater access to the products they need to meet their trading objectives.  

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S&P Indices maintains a wide variety of investable benchmark indices, for more information on the S&P 500 and all of Standard & Poor’s indices, visit www.standardandpoors.com/indices.  

More information about the forthcoming Vanguard offerings is at http://www.planadviser.com/Vanguard_to_Expand_Index_Offerings.aspx   

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