Products July 11, 2012

Schwab Rolls Out Investment Tools, Training in Plan Design

A support tool and program suite for advisers from Schwab Retirement Business Service combines investment management tools, and fiduciary and plan design training.
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Schwab Retirement Business Service tapped fi360 and The Retirement Advisor University for its product suite, and the collaboration of  UCLA Anderson School of Management Executive Education.  It includes a customized version of the fi360 Toolkit.

“fi360’s sophisticated toolkit is an integral part of our commitment to helping advisers meet a fiduciary standard of care and help their clients navigate the evolving retirement landscape,” said Debbie Pritchard, Schwab Retirement Business Services’ vice president of business development and relationship management. “By streamlining investment selection, analysis and reporting, advisers will be able to more efficiently provide their clients with a high level of service and transparency.”

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Using the tools, advisers can automatically update plan and portfolio data; manage client records; develop, document, and track client investments; develop and test asset allocations; generate proposals; and comply with 408(b)(2) fee disclosure regulations.

Advisers with plans on the Schwab Retirement Center platform are eligible for a discounted licensing fee to use the fi360 toolkit.

To learn more, click here.

 

 

Data & Research July 10, 2012

Analysis Indicates Recession Stalled Retirement Savings

Data from the 2010 Survey of Consumer Finances (SCF) suggests retirement savings progress has slowed and even reversed in the wake of the financial crisis.
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Despite the increase in automatic enrollment due to the Pension Protection Act of 2006, the percent of eligible employees not participating in their plans ticked up by 2010, according to an analysis of SCF data by the Center for Retirement Research at Boston College (CRR). At the same time, contributions slipped and leakages through cash outs and hardship withdrawals increased.     

These trends, combined with financial turmoil and a weak economy, led to median 401(k)/IRA balances that changed little from 2007 to 2010.   

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The typical household approaching retirement (age 55 to 64) had only $120,000 in 401(k)/IRA balances in 2010, virtually unchanged from $118,000 in 2007, the SCF data showed. Those age 45 to 54 had lower balances in 2010 than in 2007 ( $70,000 vs. $75,000), and younger households held only $35,000 in 2010 compared with $44,000 in 2007.    

A report of the CRR’s analysis can be downloaded here.

 

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