Products May 18, 2012

SunTrust Introduces Retirement Income Tool

SunTrust Banks Inc. launched SunTrust Retirement Income Navigator, which lets its advisers help clients maximize retirement income while drawing down assets for tax advantages. 
 
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Using the tool, SunTrust clients may increase retirement income by up to 33% versus a tax investment neutral approach, according to a study by an independent research group.

The Retirement Income Navigator’s three steps—plan, invest, manage—use tax-sensitive technology to develop a plan of specific actions rather than general recommendations. The tool was developed with LifeYield LLC.

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“If investors draw down assets in a predictable and methodical way, they can enjoy better after-tax returns, increased retirement income and, possibly a greater bequest to heirs,” said Mark Davis, senior vice president at SunTrust Investment Services.

 

 

Data & Research May 18, 2012

Study Reveals Opportunities to Guide DC Plan Participants

Most defined contribution (DC) plan participants lack a written financial or retirement plan and don't seek an adviser's help.
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Two-thirds (65%) of DC participants do not have a written financial/retirement plan and fewer than half (48%) have worked with an adviser when planning for retirement, according to the third annual Participant Experience Study by KK & Company and Mathew Greenwald and Associates.  

The study identified what the companies call an overlooked segment of retirement plan participants. Near-retirees (55 to 70 years old) often have more assets to invest than the average plan participant.  

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The study found that fewer than a quarter of participants have:

  • $50,000 to $149,000 (21%); 
  • $150,000 to $249,000 (17%); 
  • $250,000 to $499,000 (18%); and 
  • more than $500,000 (10%). 

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