Saturday, May 21News That Matters
Shadow

Tag: savers

You only have a few weeks to spend down this health-care fund. Meanwhile, savers forfeit around $400 million annually in unspent FSAs

Finance
AJ Watt | Getty ImagesAre you stocking up on cold and flu meds for the winter? Buying an at-home Covid-19 test kit? If so, you are running out of time to use this tax-advantaged account for those purchases.Health-care flexible spending accounts, which may be available at your job, allow you to stash pre-tax dollars and tap them free of tax for qualified medical expenses.In 2020 and 2021, you can save up to $ 2,750.Though you can use the money as early as Jan. 1, you generally have until the end of the year to use up your funds — or else you forfeit them.The IRS gives employers the choice of allowing workers to roll over some money into the following year — up to $ 550 for 2020 — or offering them up to 2½ months after the plan year ends to spend remaining cash.Bear in mind: Your employer ...
More than half of savers say this about the health of their retirement accounts

More than half of savers say this about the health of their retirement accounts

Finance
Many workers don't need experts to tell them they aren't putting enough away for their golden years — they apparently already know it.More than half of U.S. adults (52%) say they are behind where they should be when it comes to saving for retirement, according to a new survey from Bankrate.com. Among pre-retirees, the lag is more pronounced: 57% of younger baby boomers (age 55 to 64) and 63% of Generation X (age 39 to 54) say they're behind."If you look at the economy, you might say it's great," said Mark Hamrick, senior economic analyst at Bankrate.com. "But the reality is that there can be disconnects between it and Americans' personal finances."Jamie Grill | Getty ImagesThe economic expansion, now in its 11th year, has been accompanied by strong stock market gains — and in turn has led ...

Italy’s resilient savers are driving consolidation in asset management

Finance
THE rumour mill is grinding again. In early 2017 reports swirled of a possible merger between Generali, Italy’s biggest insurer, and Intesa Sanpaolo, the country’s second-biggest bank. That deal came to nothing. But Intesa is still looking for a partner. Now it is said to be in talks with BlackRock, the world’s biggest asset manager, about a stake in Eurizon, the bank’s asset-management unit. Deal or no deal, two things are clear. Italy’s asset-management industry is consolidating. And though investors fret over a populist government and towering public debt, its pool of private savings will keep them keen.Last year Amundi, a French asset manager, bought Pioneer, the fund-management arm of UniCredit, Italy’s biggest bank. Over half of assets under manage...
Why retirement savers are ditching the 'do-it-yourself' approach in favor of target date investments

Why retirement savers are ditching the 'do-it-yourself' approach in favor of target date investments

Finance
It turns out "do-it-yourself" investing is not all that it's cracked up to be.Employees saving for retirement in workplace 401(k) plans are increasingly eager (or willing) to autopilot their allocation and portfolio management decisions.Vanguard reports that among the more than 8,500 retirement plans it administers, with more than 4.6 million participants, usage of target date funds, balanced funds or managed account services has tripled in the decade. This explosive growth has taken place since Washington gave its blessing for plans to use target date funds (TDF) as the "default" investment.More than half of workers now rely on some form of portfolio allocation advice, with the vast majority being a TDF. Vanguard expects nearly 75 percent of investors will be leaning on professional advic...