Talking Points

Tired of giving the same old presentations? Use these nuggets of information to spruce them up.
Reported by PLANADVISER Staff
  • After rising in 2003 and for the next four years, the average 401(k) retirement account fell 24.3% in 2008, according to an analysis of participants in the Employee Benefit Research Institute/Investment Company Institute 401(k) database. However, from year-end 2003 through year-end 2008, the average account balance among the group of consistent participants grew 41.6%, rising from $61,106 at year-end 2003 to $86,513—an average annual growth rate of 7.2%, the study report says. The median 401(k) account balance among the consistent group also grew, rising 71.3% from $25,507 in 2003 to $43,700 in 2008—an average annual growth rate of 11.4% over the period (see “Long-Term 401(k) Balances Up Despite Recession”).
  • A Vanguard Group study finds only 13% of respondents strongly agreed with the view that their retirement had been permanently impaired by the past year’s market decline. Those within 10 years of retirement and concerned about foreclosure and job loss were more worried about delaying retirement, according to a press release. Asked how they would cope with the retirement savings shortfall, 74% said they would reduce spending, 48% pointed to increasing savings, and 45% said it may be necessary to work longer (see “Most Don’t Think Market Has Ruined Retirement Plans”).
  • “Human beings, who are almost unique in having the ability to learn from the experience of others, are also remarkable for their apparent disinclination to do so.”—Douglas Adams
  • A survey by the St. Louis-based American Mustache Institute (AMI) found that mustached Americans earned 8.2% more on average than those with beards and 4.3% more than those without facial hair. From a financial planning perspective, however, the good news apparently ends there. Mustache wearers also tended to spend 11% more and save 3% less than their less hairy counterparts, the poll found. The mustached Americans apparently are aware of their financial shortcomings. Of those surveyed, 95.1% said they “wish it was easier to keep track” of income and expenses while more than half said they would consider seeking outside counsel about personal finances (see “Mustached Americans Want Help with Finances”).
  • Just because everything is different doesn’t mean anything has changed.