| It's Crunch Time for Advisors Helping Boomers Prepare for Retirement
With all the recent attention on baby boomers and their retirement readiness, it's no wonder that one of the biggest concerns for investment advisors and financial planners today is retirement planning. If the goal is to ensure a livable income for retirees, then a shrinking social security net, soaring healthcare costs and the virtual disappearance of fixed-rate pensions are not making any soon-to-be retirees breathe easier. In our most recent survey, AdvisorBenchmarking investigates this challenge and sheds more light on how advisors can turn this market challenge into real business opportunities. As wealthy clients transition into retirement and begin to transfer their wealth to heirs, retaining boomer assets has become a key objective for most advisors. Right now, nearly half of advisors (43%) say that 20% to 40% of their clients are retirees and that number will only multiply in the coming years.
Take Action Against Unscrupulous Brokers
My 92-year-old mother's broker sold her million-dollar portfolio that had income-producing stocks and bonds and instead bought assets that were suitable for growth. The changes also resulted in a large capital-gains tax bill. Every accountant, financial planner and broker I have spoken to finds it difficult to believe that someone would turn a predominantly income-oriented portfolio of an elderly person into a growth portfolio all in one tax year. It's almost a given that the financial needs of a person that age would only increase, which indeed is the case with my mother who now requires 24-hour care. I would appreciate any resources or thoughts you might have about what to do about this. I'm very sorry to hear about your experience with your mother's broker. From the information you've provided, it sounds like you do have a strong case against the broker for unsuitable investments.
Hiram College to sell property Will be used to build retirement ...
HIRAM -- Through an agreement with local developers, Hiram College has agreed to sell 120 acres of property to Village Builders for the construction of a 55-and-older retirement community. The property, most of which is in Hiram Township but a small part of which is in the village of Hiram east of S.R. 700, will become the future home of an independent living community with up to 200 units, according to the college. "The college and developers have been talking for some time, and we had the land down by the (college) physical plant. It seems like it's well-situated for the development of a retirement village that we would try to market to our alumni and other people interested in living in a situation where they can take advantage of some offerings Hiram College will provide," college spokesman Steve Love said.
Former RCMP chief concerned pension claims tarred reputation
OTTAWA -- Former RCMP commissioner Giuliano Zaccardelli yesterday denied any involvement in a coverup related to the alleged mismanagement of RCMP pension funds when he appeared before a parliamentary committee. "Nothing could be further from the truth," Zaccardelli told the public accounts committee in his opening statement. "From the outset all steps taken by me and by management were openly reported upon and documented." The former commissioner, who resigned last year after admitting he gave incorrect testimony to a parliamentary committee examining the Maher Arar affair, said his integrity and reputation have been tarnished by the "offensive" accusations and he's deeply concerned about them. .
RRIF rules have not kept up with society
The recent federal budget gave retirees two extra years of tax-free growth of investments held in RRSPs. RRSPs do not have to be terminated or converted to a RRIF (Registered Retirement Income Fund) until age 71. The previous mandatory conversion age was 69. This reprieve helps but doesn't change the fact retirees must withdraw more from their RRIFs than financial planners believe is prudent. According to American author William Bengen, the "safe" annual withdrawal rate for investment portfolios is 4% to 4.5% the first year, adjusted thereafter for inflation. .
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