Products March 15, 2011

Raymond James and RiverFront Introduce Four Model UMAs

Raymond James Asset Management Services and RiverFront Investment Group announced four model portfolios on the Raymond James Freedom Unified Managed Account platform. 
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Raymond James introduced its Freedom UMA platform in 2008, which has more than 50 asset allocation models across six investment objectives. The new additions will be the Dynamic Growth, Dynamic Balanced, Dynamic Balanced with Growth, and Dynamic Equity Income portfolio models. The company says the models incorporate RiverFront’s separately managed account portfolios as the dynamic engine. Account minimums are $300,000.

“These new portfolios bring together an innovative combination RiverFront’s Dynamic Strategic asset allocation strategies and Raymond James preferred alternative investment capabilities,” said Michael Jones, RiverFront’s Chairman and Chief Investment Officer. “The goal is to provide investment solutions that can manage portfolio risk, even in a rising interest rate environment.”

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Raymond James says UMAs are one of the fastest growing segments in the managed solutions industry; they allow clients and advisers to deliver multiple investment disciplines in a single integrated custody account (see “Managed Account Industry to Shift from SMAs to UMAs”).

Data & Research March 15, 2011

Majority of Gen Y not Saving for Retirement

The majority (55%) of Gen Yers have not started to save for retirement, and fewer than a quarter (21%) are actively planning for retirement, according to Scottrade.
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Scottrade, the online investing firm, found 60% of Gen Yers (born 1983-1991) saved nothing toward retirement last year and 40% plan to save nothing in 2011. An additional 21% plan to save only one to two percent of their income this year.   

The survey asked at what age they’d recommend people start saving for retirement; respondents gave a mean age of 29.2 years old, giving even the oldest of the group two more years before this generation thinks they need to start saving.   

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The survey indicates Gen Y’s lack of action doesn’t stem from lack of awareness or interest. Almost three-fourths of Gen Yers (73%) realize that they are not saving enough for retirement.  Other surveys have found that Gen Y defines “financial success” in terms of ability to save (see “Gen Y Focused on Savings“).

“What Gen Y may not realize is that older generations based their retirement planning on the three-legged stool of Social Security, savings and employer pensions,” said Craig Hogan, director of customer intelligence at Scottrade. “The approach their parents and grandparents took toward saving is no longer appropriate because the old model doesn’t exist. By the time Gen Y retires, they may have only one reliable leg to stand on – their own savings – and they need to plan accordingly.”

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