Deals & People March 11, 2013

Compass Financial Hires PIMCO Exec

Matt Vanaman was named managing director of investment consulting, a newly created position, for Compass Financial Partners.
Reported by

The company called Vanaman’s role a key one, expected to build on the company’s growth and customer service objectives. Vanaman joins a group of retirement plan professionals that was recently named to PLANADVISER’s 2013 Top Retirement Plan Advisers in the team category.

Vanaman comes to Compass after holding positions at PricewaterhouseCoopers, CAPTRUST Financial Advisors and most recently PIMCO, where he worked with retirement advisers in the Southeast. 

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Data & Research March 11, 2013

Boomers Less Likely to Save If No Tax Incentives

Middle-income Baby Boomers would be less likely to save for retirement if taxes are increased or if tax incentives for retirement savings are reduced or eliminated.
Reported by

A study by the Insured Retirement Institute (IRI) also found tax deferral is among the most important considerations when Baby Boomers, and particularly Boomers at middle-income levels, evaluate a retirement investment. “Our consumer research found that tax policy changes would have negative consequences for retirement savings, with about a quarter of middle-income Boomers likely to curtail their retirement savings if tax deferral is reduced or eliminated,” IRI President and CEO Cathy Weatherford said.  

According to the January survey of Americans ages 50 to 66, 58% of middle-income Boomers are likely to cut back on retirement savings if income taxes are increased, 40% if Social Security payroll taxes are increased, and 29% if capital gains taxes are increased. Seventy-four percent of all Boomers consider tax deferral to be an important feature when selecting a retirement investment, and about one in five consumers cited tax-deferred growth as the primary reason for owning an annuity. Among middle-income Boomers, 77% said tax deferral is an important consideration when selecting a retirement product.  

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As the government looks for budget solutions, defined contribution (DC) plan tax breaks are being considered by lawmakers. (See “Legal Eagles Advise on IRA Rollovers from 401(k)s.”)

The full survey report is here.

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