Investors Want Financial Planning to Include Health Care Costs

They also believe their financial future is largely dependent on their physical well-being.

Eighty-one percent of Americans believe it would be very or extremely valuable for their financial adviser to include health care costs in their retirement planning, according to research by Transamerica and Luntz Global Partners.

When asked what is the most essential for their financial future, 37% said their health, followed by happiness (19%), security (19%), peace of mind (16%) and independence (9%).

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“Being aware that health is of paramount importance to clients in building their financial security, advisers should use that knowledge to suggest solutions that take into account the full scope of their essential long-term needs,” says Dave Paulsen, chief sales officer at Transamerica. “It’s clear that better conversations result in healthier and stronger relationships between advisers and clients when discussing their finances and financial future.”

The research is based on a survey of 1,000 adults and focus groups held throughout the country, which required the participants to have a minimum household income of $75,000 and investable assets of $50,000 or more.

Transamerica has developed a micro site to help advisers approach clients’ financial wellness holistically: “How to Effectively Engage Clients.”

A recent survey by Edward Jones found that 60% of Americans are worried about paying for health care costs in retirement. Fidelity projects that a couple retiring this year will need $260,000 to pay for their health care costs throughout their retirement, a 6% increase from 2015.

DOL Drops Lawsuit Over Contractor's Failure to Pay 401(k) Contributions

The DOL filed a proposal to dismiss the lawsuit after the contractor made a payment to the plan.

The U.S. Department of Labor (DOL) has filed a proposed order of dismissal of a lawsuit in which it alleged a government contractor failed to make required contributions to its 401(k) plan.

B.C. Inc. restored to the plan unremitted employer contributions, with lost earnings, totaling approximately $149,904.

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The DOL filed a complaint earlier this year alleging that Tarry Bratton, B.C. Inc. and the B.C. Inc. 401(k) Profit Sharing Plan violated the Employee Retirement Income Security Act (ERISA) by not collecting employer contributions required by government contracts to the company’s plan.

According to the complaint, Tarry Bratton, president and sole owner of the company, was the plan’s trustee and a plan fiduciary. The company established the plan in October 2004, and it required that the company make contributions equal to the amount of fringe benefits paid under various prevailing-wage contracts, pursuant to the Davis-Bacon Act.

However, from January 2009 to July 2012, Bratton and the company failed to remit mandatory employer contributions to the plan. The complaint says Bratton and the company could have successfully collected the contributions at the time they were due because the funds were available and the financial health of the company was good at the time.

The DOL’s proposed order of dismissal is here.

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