Retirement

With advisors and investors focused on tax season, Ed Slott returns with some quick answers on Roth IRAs, required minimum distributions and what all this means before (and after) April 18.

The stunning decline in property values across most of the country, a prolonged recession and plain-old negligence and shortsightedness on the part of American workers have all combined to make retirement more a fantasy than a reality for tens of millions of baby boomers who will soon turn 65 years of age.

Forget downsizing to a tony townhouse or retiring to a beach property in a warm climate. Clients are more concerned about having enough money for daily necessities, according to financial advisors polled by Sun Life Financial recently.

A majority of Americans find retirement planning confusing and want additional help, a study by the ING Retirement Research Institute conducted by the Boston Consulting Group found.

About 40 years ago, they were told to cut their hair and find a real job. Today, this same massive segment of the American population, better known as baby boomers, is getting another ultimatum: Stop spending so much money and work even longer at that real job.

The decline in plan sponsor appetite to change recordkeepers has dropped at a steady rate, not in spikes, which makes it likely that we will not see a dramatic increase any time soon. Meanwhile, many of the larger, more established recordkeepers are having record years; that means the rich keep getting richer while the rest are suffering.

Without delving too deeply into philosophy, it is probably safe to say that some people are compelled to do the right thing only because of the fear of punishment. As a young child, if I had the opportunity to take an extra cookie and not get caught, I may very well have taken full advantage of the situation. However, more often than not, the fear of getting caught with my hand in the cookie jar prevented me from doing it.

From analyzing the developing definition of fiduciary to discussing the best ways for advisers to differentiate themselves from the competition, the American Society of Pension Professionals & Actuaries' "10th anniversary 401(k) SUMMIT" gave more than 950 attendees plenty of tricks of the trade to improve their business and stay informed on industry developments. Held March 6-8 in Las Vegas, the SUMMIT drew a range of retirement advisers, recordkeepers, plan administrators and others from across the country.

Standard & Poor's, the world's leading index provider and publisher of the widely followed Standard & Poor's Index Versus Active Fund scorecard series, has launched the industry's first comprehensive, periodic scorecard for target-date mutual funds. The S&P Indices Target-Date Scorecard provides performance comparisons, equal- and asset-weighted peer averages, and volatility comparisons for U.S. target-date funds versus their relative S&P Target-Date Index.

Insurance companies and investment firms offering retirement services to companies large and small are learning that attention to detail and improved communication with the plan sponsors and, indirectly, plan participants can dramatically improve their customer retention and satisfaction rates.