It is simply our nature. Even when we think we are acting in our own best interest, we often allow optimism to rule most of our investment decisions. Yet, if we look closely at the worst case scenario instead of the best possible outcome, we might uncover some interesting tidbits of information that could help us achieve better results in our 401(k)s.
By now, most of us now realize that our mutual fund investments, particularly those in our retirement accounts, can go down, often dramatically. Until recently, we paid little attention to how bad a fund can perform, focusing instead on how well it can do.
Some of us use those online retirement calculators to help. Others simply look at historic gains and predict where we will be balance-wise in the far off future. We make random estimates of how much money will be in the account when we choose to begin drawing it down. And as we now know, this can be less than we anticipated (just ask anyone who has postponed their retirement because of a lower than expected balances).
So how do you determine the performance of a fund, or better, the risk that the fund will do what you intended it to do?
The Blame Game, revisited
Some hedge fund managers think they have the answer. It is complicated? Yes. Is it impossible for the average investor to determine? Not if you consider the manager as the sole blame for the fund's performance.
Mutual fund managers are part of the equation you use to pick a fund. Tucked in amongst the performance of the fund, the underlying holdings and the fees, we look at the fund manager's tenure. The assumption being that the fund manager will do much better the longer s/he has been at the helm. Tenure also assumes that the fund will have stabilized over the period that the manager is in control.
Fund managers as we (should) know must follow the charter of the fund. This is not as easy as it sounds. Far too many fund managers fail in their attempts to avoid style drift, a notoriously common occurrence whereby the fund manager tries to imitate whatever index works, in the hope of mimicking the return of the benchmark it will compare itself to at the quarter's end. This is managing for the upside, often shifting holdings at or near the quarter's end to give the appearance of better-than-average performance.
So we look at the end result when we should be looking much more closely at what occurred during the periods between reporting.
Some fund watchers suggest that simply looking at these sorts of results is not only the wrong thing to use as a way to decide where to invest but will also cause you to assume that good times are part of the continuing experience of investing. As we know, markets go down. How the fund manager did during this peak to valley performance is, as some are beginning to realize, a better indication of how well the fund has done and the manager has performed.
Richard Gates, portfolio manager for TFS Capital thinks "the best way to estimate risk is to try to quantify a portfolio's downside volatility. In other words, how much money can I lose in a given period of time?"
Wandering in the Valley
Volatility is an excellent measure of the fund's performance during certain periods. But few of us look at the way the fund manager managed the portfolio (during her/his current tenure and better, their performance in the past) as the indication that your fund will do as expected in the future.
Fund managers are awash in information and you rely on their ability to parse this information, apply it to where you would like the fund to go in the future, and limit the downside risk. Your fund may have lost money; but did it lose as much as comparable funds (benchmarks excluded)?
Some analysts suggest that instead of looking at the best day and make withdrawal assumptions based on that point of reference, you should look at the worst day, the moment when your portfolio looks its weakest. If is better than most, you have hooked your fortune to the right manager.
But don't limit your assumptions with the current fund under management. Look at all of the performance results from every fund they have managed. Digging a fund out of a bad period is perhaps the best indication of the fund manager's expertise.
This is no easy task. Funds on the downside of expectations face some unusual pressures. Investors bail in disgust forcing redemptions to rise which force the fund manager to sell underlying winners. This creates a tax situation that all of us would have rather be avoided. There is less money to channel towards new investment opportunities and the fund struggles. How they turn this around may be the single best indicator of their skills. Past results, it seems, matter more than you might expect.
Paul Petillo
Managing Editor/BlueCollarDollar.com
Contact Paul with questions.
Monday, October 19, 2009
Thursday, October 15, 2009
Shining a Light on Your 401(k)
It Should be Easier
There are numerous obstacles that keep us from building enough wealth in our 401(k) plans. The first is as simple as beginning to invest in your retirement future. This is stressed frequently and with good reason. The earlier you begin investing, the better situated you will be for retirement in the far-off future.
The second hurdle is how much to invest. I suggests that no matter how poorly a plan you have with your employer, setting at least 5% of your pre-tax income (a number that does not have much of an impact on your take-home pay) is better than not investing at all. For first time 401(k) investors, who may need as much of their paycheck as possible, this is a good start.
The third hurdle is the company match. This is used as an incentive to get you to put some money away for your future by offering to match the first couple of percentage points. Some companies do not do right by their employees when they match only with their own company's stock or if they have lowered or withdrawn the match due to the "economic downturn".
And the last hurdle to these beginners is where to put their money. Not all plans are created equal and not all investments in these plans are worthwhile. That doesn't mean you should ignore the opportunity to invest, it simply means that your choices are not as good as they could be. This is particularly troubling if you are an older investor who may have gotten a late start or if you have changed jobs and are now enrolled in a less than adequate plan.
The Role of the Investor
Often, 401(k) users simply sit back and allow these companies to make difficult choices without their input. There is a fiduciary responsibility that is assumed by your employer when they offer you a plan like this to provide not only viable investments but opportunities to grow your money.
Becoming more vocal, even if you are the lone voice in the crowd used to be difficult. Access to necessary information was largely outside your abilities and most of the information was held close to the vest by the employer. Since January 2009, that has changed.
BrightScope, the brain child of two investment managers and a former engineer at HP, allows you to look at your company's plan in a way that was not possible previously. Designed to help human resource departments make good choices about plans, BrightScope seeks to give these folks some sort of benchmark to judge how their plan is run and how their employees access it and use it. BrightScope realized that "because benefits data has been controlled by a small group of companies that are not incentivized or governed by the same fiduciary standards that a plan sponsor must honor" difficulties in determining which is the best plan to offer their employees was not possible.
This concept understands that transparency is not what it should be and even though regulation to improve these plans may be forthcoming, waiting to id not a better choice. BrightScope it should be noted works with these HR departments and those with the fiduciary responsibility to improve those plans now.
How does it Work?
The software it employs, according to the website, works like this:
"BrightScope obtains some of its data from public sources such as the Department of Labor, the Securities and Exchange Commission, the U.S. Census Bureau, the Equal Employment Opportunity Commission, and the Bureau of Labor Statistics. Mutual fund asset allocation and fee data are obtained from mutual fund prospectuses, statements of additional information (SAI) and Form N-SAR. Mutual fund return history data is obtained from Xignite, Inc. Data on 401k fees comes from company filings, and directly from plan sponsors who work with us to improve their plan. While all participant-level data is protected and confidential, we aggregate data across comparable companies to construct relevant benchmarks for fees, plan design and plan performance. BrightScope believes it possesses the most comprehensive database of 401k information in the country. The company leverages this database to provide plan sponsors, advisers and participants with accurate and high quality data to help them make more informed decisions."
It also realizes that the cost passed on to you in the form of fees is not readily available to you and therefore must be garnered from the overall return of the investment. This is also up for regulatory change.
The company also makes some assumptions when it applies its magic to your plan. It grabs an average employee, someone who is a "44-year-old, gender-neutral individual, earning an income of $44,000 a year, with a starting account balance of $40,000". From there, it acknowledges that each plan offers different company contributions, its own set of fees (generated by the large variety of plan sponsors, banks, mutual fund families , insurance companies, etc.), what is offered in the plan and whether the investment menu quality is adequate enough to provide growth opportunities, and how soon the employee may begin to use the plan (vesting schedules). These are, to say the least, unique to each company.
After determining what the company calls the "retirement goal line", a calculation that uses actuarial tables and assumptions of how long it will take the employee to get to retirement, BrightScope then runs a simulation, thousands of them. The better the plan, the quicker the plan participant gets to retirement, the higher the rating the plan gets on a scale of 1-100.
A Step in the Right Direction
It is no easy job being a plan fiduciary. BrightScope offers some much needed assistance with the task. Understanding that the responsibilities are many, including the need to act solely in the interest of plan participants and their beneficiaries, focusing their efforts towards the "exclusive purpose of providing benefits to them" is not as easy as it sounds. Not all companies have the personnel to achieve this sort of understanding.
Many times, the task of due prudence when overseeing these plans. the ability to follow all of the documents associated with the plan, being able to determine whether the underlying investments in the plan are diversified enough and cost effective (remember the fees are net of returns), is not always within the purview of the department responsible.
While you do have the right to request all of this information yourself and you can challenge the plan as being inadequate for your needs, BrightScope makes it easier to illustrate the problem. many companies believe they have done right for their employees. They may not know otherwise.
Check out your plan here.
Paul Petillo is the Managing Editor of BlueCollarDollar.com and a concerned Boomer.
There are numerous obstacles that keep us from building enough wealth in our 401(k) plans. The first is as simple as beginning to invest in your retirement future. This is stressed frequently and with good reason. The earlier you begin investing, the better situated you will be for retirement in the far-off future.
The second hurdle is how much to invest. I suggests that no matter how poorly a plan you have with your employer, setting at least 5% of your pre-tax income (a number that does not have much of an impact on your take-home pay) is better than not investing at all. For first time 401(k) investors, who may need as much of their paycheck as possible, this is a good start.
The third hurdle is the company match. This is used as an incentive to get you to put some money away for your future by offering to match the first couple of percentage points. Some companies do not do right by their employees when they match only with their own company's stock or if they have lowered or withdrawn the match due to the "economic downturn".
And the last hurdle to these beginners is where to put their money. Not all plans are created equal and not all investments in these plans are worthwhile. That doesn't mean you should ignore the opportunity to invest, it simply means that your choices are not as good as they could be. This is particularly troubling if you are an older investor who may have gotten a late start or if you have changed jobs and are now enrolled in a less than adequate plan.
The Role of the Investor
Often, 401(k) users simply sit back and allow these companies to make difficult choices without their input. There is a fiduciary responsibility that is assumed by your employer when they offer you a plan like this to provide not only viable investments but opportunities to grow your money.
Becoming more vocal, even if you are the lone voice in the crowd used to be difficult. Access to necessary information was largely outside your abilities and most of the information was held close to the vest by the employer. Since January 2009, that has changed.
BrightScope, the brain child of two investment managers and a former engineer at HP, allows you to look at your company's plan in a way that was not possible previously. Designed to help human resource departments make good choices about plans, BrightScope seeks to give these folks some sort of benchmark to judge how their plan is run and how their employees access it and use it. BrightScope realized that "because benefits data has been controlled by a small group of companies that are not incentivized or governed by the same fiduciary standards that a plan sponsor must honor" difficulties in determining which is the best plan to offer their employees was not possible.
This concept understands that transparency is not what it should be and even though regulation to improve these plans may be forthcoming, waiting to id not a better choice. BrightScope it should be noted works with these HR departments and those with the fiduciary responsibility to improve those plans now.
How does it Work?
The software it employs, according to the website, works like this:
"BrightScope obtains some of its data from public sources such as the Department of Labor, the Securities and Exchange Commission, the U.S. Census Bureau, the Equal Employment Opportunity Commission, and the Bureau of Labor Statistics. Mutual fund asset allocation and fee data are obtained from mutual fund prospectuses, statements of additional information (SAI) and Form N-SAR. Mutual fund return history data is obtained from Xignite, Inc. Data on 401k fees comes from company filings, and directly from plan sponsors who work with us to improve their plan. While all participant-level data is protected and confidential, we aggregate data across comparable companies to construct relevant benchmarks for fees, plan design and plan performance. BrightScope believes it possesses the most comprehensive database of 401k information in the country. The company leverages this database to provide plan sponsors, advisers and participants with accurate and high quality data to help them make more informed decisions."
It also realizes that the cost passed on to you in the form of fees is not readily available to you and therefore must be garnered from the overall return of the investment. This is also up for regulatory change.
The company also makes some assumptions when it applies its magic to your plan. It grabs an average employee, someone who is a "44-year-old, gender-neutral individual, earning an income of $44,000 a year, with a starting account balance of $40,000". From there, it acknowledges that each plan offers different company contributions, its own set of fees (generated by the large variety of plan sponsors, banks, mutual fund families , insurance companies, etc.), what is offered in the plan and whether the investment menu quality is adequate enough to provide growth opportunities, and how soon the employee may begin to use the plan (vesting schedules). These are, to say the least, unique to each company.
After determining what the company calls the "retirement goal line", a calculation that uses actuarial tables and assumptions of how long it will take the employee to get to retirement, BrightScope then runs a simulation, thousands of them. The better the plan, the quicker the plan participant gets to retirement, the higher the rating the plan gets on a scale of 1-100.
A Step in the Right Direction
It is no easy job being a plan fiduciary. BrightScope offers some much needed assistance with the task. Understanding that the responsibilities are many, including the need to act solely in the interest of plan participants and their beneficiaries, focusing their efforts towards the "exclusive purpose of providing benefits to them" is not as easy as it sounds. Not all companies have the personnel to achieve this sort of understanding.
Many times, the task of due prudence when overseeing these plans. the ability to follow all of the documents associated with the plan, being able to determine whether the underlying investments in the plan are diversified enough and cost effective (remember the fees are net of returns), is not always within the purview of the department responsible.
While you do have the right to request all of this information yourself and you can challenge the plan as being inadequate for your needs, BrightScope makes it easier to illustrate the problem. many companies believe they have done right for their employees. They may not know otherwise.
Check out your plan here.
Paul Petillo is the Managing Editor of BlueCollarDollar.com and a concerned Boomer.
Social Networking.
Social Networking are being taken over by seniors and baby boomers.
I predicted 10+ years ago that Social Networking will be the next big thing.
I have several web sites and groups. My main site is boomersint.org. I bought a profile package for my main site and it creates member profile which allows member to add their own photo, create their own mini blog, add their favorite friends and email to each other.
I asked the programmer that I bought the Profile Pro software to perhaps concentrat in creating a social networking software package. I would have love to have my Profile for my members to become a social networking site for baby boomers.
The programmer told me that he is too busy making software that he plans to sell in a box.
10 years later, Google Myspace and Facebook founders are all millionaires. I still dont have a good Profile software for my site lol
I predicted 10+ years ago that Social Networking will be the next big thing.
I have several web sites and groups. My main site is boomersint.org. I bought a profile package for my main site and it creates member profile which allows member to add their own photo, create their own mini blog, add their favorite friends and email to each other.
I asked the programmer that I bought the Profile Pro software to perhaps concentrat in creating a social networking software package. I would have love to have my Profile for my members to become a social networking site for baby boomers.
The programmer told me that he is too busy making software that he plans to sell in a box.
10 years later, Google Myspace and Facebook founders are all millionaires. I still dont have a good Profile software for my site lol
Wednesday, September 23, 2009
Going Broke Caring for Aging Parents
September 18, 2009, 11:15 am
Going Broke Caring for Aging Parents
By Tara Parker-Pope
About 30 percent of adult children in the United States contribute financially to their parents’ care for everything from uncovered medical expenses to making sure the refrigerator is stocked each week, writes Walecia Konrad in today’s Patient Money column. But in the face of longer life spans and chronic illness, the costs of an aging parent can mean financial peril for the rest of the family.
http://well.blogs.nytimes.com/2009/09/18/the-financial-peril-of-an-aging-parent/
Going Broke Caring for Aging Parents
By Tara Parker-Pope
About 30 percent of adult children in the United States contribute financially to their parents’ care for everything from uncovered medical expenses to making sure the refrigerator is stocked each week, writes Walecia Konrad in today’s Patient Money column. But in the face of longer life spans and chronic illness, the costs of an aging parent can mean financial peril for the rest of the family.
http://well.blogs.nytimes.com/2009/09/18/the-financial-peril-of-an-aging-parent/
Monday, September 14, 2009
Boomers Retirement.
I have been so busy with real estate business as well as my part time consulting in IT field. I just saw that the last time I updated this blog was in March 2009.
I think may be it is in keeping with the time. Boomers Retirement is oxymoron. boomers can not afford to retire even if they reach 62 and are eligibla for Social Security. Younger boomers who are in their 50s definitely still need to work.
More boomers and seniors are putting off retirement and many work not because they want to but because they have to.
According to Paul Taylor, executive vice president of the Pew Research Center, "Four in 10 folks still working in their 60s say they will have to delay their retirement because of the recession,"
The new report also stated that during the next decade 93 percent of the growth in the U.S. labor force will be made up of people 55 and older.
Here is the link to the article:
Recession Turns a Graying Office Grayer
America’s Changing Work Force
September 3, 2009
According to the Pew Research survey, nearly four-in-ten adults who are working past the median retirement age of 62 say they have delayed their retirement because of the recession. Among workers ages 50 to 61, fully 63% say they might have to push back their expected retirement date because of current economic conditions
http://pewsocialtrends.org/pubs/742/americas-changing-work-force
I think may be it is in keeping with the time. Boomers Retirement is oxymoron. boomers can not afford to retire even if they reach 62 and are eligibla for Social Security. Younger boomers who are in their 50s definitely still need to work.
More boomers and seniors are putting off retirement and many work not because they want to but because they have to.
According to Paul Taylor, executive vice president of the Pew Research Center, "Four in 10 folks still working in their 60s say they will have to delay their retirement because of the recession,"
The new report also stated that during the next decade 93 percent of the growth in the U.S. labor force will be made up of people 55 and older.
Here is the link to the article:
Recession Turns a Graying Office Grayer
America’s Changing Work Force
September 3, 2009
According to the Pew Research survey, nearly four-in-ten adults who are working past the median retirement age of 62 say they have delayed their retirement because of the recession. Among workers ages 50 to 61, fully 63% say they might have to push back their expected retirement date because of current economic conditions
http://pewsocialtrends.org/pubs/742/americas-changing-work-force
Tuesday, March 17, 2009
Unretirement Index Reports...
Sun Life Unretirement Index Reports Almost Half of Americans Would Not Contribute to Social Security
New Research Reflects Growing Lack of Confidence in
Government Benefits
WELLESLEY, MA (March 16, 2009) - The U.S. division of Sun Life Financial Inc. (NYSE:SLF, TSX:SLF) today released new data from the Sun Life UnretirementSM Index that reveals almost half of American workers (48%), if offered the choice, would prefer to stop paying into the Social Security system even if it meant that they would not receive these benefits once eligible to receive them. The Index, released multiple times a year, gauges how economic, financial, and societal forces affect working Americans and their retirement decisions.
In addition, this preference for opting out of the Social Security system is present among all age groups.
· Workers in their 30s are most likely to favor not paying into the Social Security system, with 59% responding they would rather not pay the taxes and not receive benefits.
· 51% of workers age 40-49 prefer to not participate.
· 44% of workers age 50 to 59 prefer to not participate in the Social Security program, and 39% of workers 50 and older would rather not participate.
· Even a significant amount of respondents who are nearing traditional retirement age would choose to stop paying Social Security taxes. One in three (33%) workers over the age of 60 said they would stop paying Social Security taxes even if it meant they would not receive any benefits.
Income level was also not a strong factor impacting American workers’ attitudes toward Social Security. In fact, results were largely consistent across income levels.
Almost half (47%) of Americans with a household income of less than $25,000 would choose to opt out of the system, and 48% of those making between $25,000 and $50,000 a year would as well.
· Slightly more than half (52%) of Americans making over $125,000 a year would choose to stop paying Social Security taxes and not receive the benefit.
The research also shows men are far more likely than women to say they would rather not pay into Social Security or receive any Social Security payments.
· 57% of men age 40 to 49 would opt out of Social Security, while 45% of women in that age group would choose to opt out.
· 62% of men age 30 to 39 would opt out. Just over half (56%) of women age 30 to 39 would choose to opt out.
“As American workers approach the traditional retirement age, they increasingly begin to see the value of some component of guaranteed income, whether or not they plan to keep working,” said Wes Thompson, President of Sun Life Financial U.S. “While the drop in the overall Unretirement Index number reflects a decrease in confidence in Social Security, future Index findings will determine the long-term effects of the current economy on American expectations of retirement.”
Listen to additional commentary from Wes Thompson.
http://www.sunlife-usa.com/unretirementindex/results.cfm
Lack of confidence in government benefits grows in recent months
As the global recession has continued over the past several months, the Unretirement Index has shown a growing lack of confidence among American workers in the future availability of government benefits. The Index most recently polled American workers in December 2008. When asked if they believed Social Security will be available to them at age 67, over half of Americans (54%) did not believe it would.
The group that showed the sharpest drop in confidence was forty-something Americans. In August, 52 percent of Americans age 40-49 believed that Social Security would not be available from them at age 67. Three months later the number spiked to 66 percent - a 14 point shift.
What it means to be Unretired
Unretirement is defined as working at least 20 hours per week after the age when one is eligible to receive Social Security benefits. Sun Life created this Index to learn more about the reasons why Americans are choosing to “unretire,” or continue to work full- or part-time after the age of traditional retirement. For the complete Unretirement Index results, visit:
http://www.unretirementindex.com.
Methodology
The most recent version of the Sun Life Unretirement Index was conducted between December 3 and 14 of 2008. Telephone interviews were conducted by Interviewing Service of America using a random-digit dial (RDD) sampling method. Quotas and weights were applied to gather a sample of 1,200 people working either full- or part-time, which was representative of the U.S. working population between the ages of 30 and 66. The sample was also representative in terms of gender and four-region census break. Analysis and construction of indices involved the application of factor analysis. Final indices are based on summated averages across the attributes which make up an index.
Age groups were divided by workers in their 30s, 40s, 50s, and 60+ and by three ranges of total assets, not including the net worth of the person’s place of residence (less than $100K, between $100K and $500K, and greater than $500K). This sample has a margin of error of 2.8 percent at the 95 percent confidence interval.
About Sun Life Financial
Sun Life Financial is a leading international financial services organization providing a diverse range of protection and wealth accumulation products and services to individuals and corporate customers. Chartered in 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of December 31, 2008, the Sun Life Financial group of companies had total assets under management of US $313.3 billion. Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under ticker symbol SLF.
Visit Sun Life Financial's website at http://www.sunlife-usa.com.
Ryan Wagner │ Managing Supervisor │Fleishman-Hillard Inc.
855 Boylston Street │ Boston, MA 02116-2622
direct: 617-692-0522 │ mobile: 202-230-1275
New Research Reflects Growing Lack of Confidence in
Government Benefits
WELLESLEY, MA (March 16, 2009) - The U.S. division of Sun Life Financial Inc. (NYSE:SLF, TSX:SLF) today released new data from the Sun Life UnretirementSM Index that reveals almost half of American workers (48%), if offered the choice, would prefer to stop paying into the Social Security system even if it meant that they would not receive these benefits once eligible to receive them. The Index, released multiple times a year, gauges how economic, financial, and societal forces affect working Americans and their retirement decisions.
In addition, this preference for opting out of the Social Security system is present among all age groups.
· Workers in their 30s are most likely to favor not paying into the Social Security system, with 59% responding they would rather not pay the taxes and not receive benefits.
· 51% of workers age 40-49 prefer to not participate.
· 44% of workers age 50 to 59 prefer to not participate in the Social Security program, and 39% of workers 50 and older would rather not participate.
· Even a significant amount of respondents who are nearing traditional retirement age would choose to stop paying Social Security taxes. One in three (33%) workers over the age of 60 said they would stop paying Social Security taxes even if it meant they would not receive any benefits.
Income level was also not a strong factor impacting American workers’ attitudes toward Social Security. In fact, results were largely consistent across income levels.
Almost half (47%) of Americans with a household income of less than $25,000 would choose to opt out of the system, and 48% of those making between $25,000 and $50,000 a year would as well.
· Slightly more than half (52%) of Americans making over $125,000 a year would choose to stop paying Social Security taxes and not receive the benefit.
The research also shows men are far more likely than women to say they would rather not pay into Social Security or receive any Social Security payments.
· 57% of men age 40 to 49 would opt out of Social Security, while 45% of women in that age group would choose to opt out.
· 62% of men age 30 to 39 would opt out. Just over half (56%) of women age 30 to 39 would choose to opt out.
“As American workers approach the traditional retirement age, they increasingly begin to see the value of some component of guaranteed income, whether or not they plan to keep working,” said Wes Thompson, President of Sun Life Financial U.S. “While the drop in the overall Unretirement Index number reflects a decrease in confidence in Social Security, future Index findings will determine the long-term effects of the current economy on American expectations of retirement.”
Listen to additional commentary from Wes Thompson.
http://www.sunlife-usa.com/unretirementindex/results.cfm
Lack of confidence in government benefits grows in recent months
As the global recession has continued over the past several months, the Unretirement Index has shown a growing lack of confidence among American workers in the future availability of government benefits. The Index most recently polled American workers in December 2008. When asked if they believed Social Security will be available to them at age 67, over half of Americans (54%) did not believe it would.
The group that showed the sharpest drop in confidence was forty-something Americans. In August, 52 percent of Americans age 40-49 believed that Social Security would not be available from them at age 67. Three months later the number spiked to 66 percent - a 14 point shift.
What it means to be Unretired
Unretirement is defined as working at least 20 hours per week after the age when one is eligible to receive Social Security benefits. Sun Life created this Index to learn more about the reasons why Americans are choosing to “unretire,” or continue to work full- or part-time after the age of traditional retirement. For the complete Unretirement Index results, visit:
http://www.unretirementindex.com.
Methodology
The most recent version of the Sun Life Unretirement Index was conducted between December 3 and 14 of 2008. Telephone interviews were conducted by Interviewing Service of America using a random-digit dial (RDD) sampling method. Quotas and weights were applied to gather a sample of 1,200 people working either full- or part-time, which was representative of the U.S. working population between the ages of 30 and 66. The sample was also representative in terms of gender and four-region census break. Analysis and construction of indices involved the application of factor analysis. Final indices are based on summated averages across the attributes which make up an index.
Age groups were divided by workers in their 30s, 40s, 50s, and 60+ and by three ranges of total assets, not including the net worth of the person’s place of residence (less than $100K, between $100K and $500K, and greater than $500K). This sample has a margin of error of 2.8 percent at the 95 percent confidence interval.
About Sun Life Financial
Sun Life Financial is a leading international financial services organization providing a diverse range of protection and wealth accumulation products and services to individuals and corporate customers. Chartered in 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of December 31, 2008, the Sun Life Financial group of companies had total assets under management of US $313.3 billion. Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under ticker symbol SLF.
Visit Sun Life Financial's website at http://www.sunlife-usa.com.
Ryan Wagner │ Managing Supervisor │Fleishman-Hillard Inc.
855 Boylston Street │ Boston, MA 02116-2622
direct: 617-692-0522 │ mobile: 202-230-1275
Wednesday, February 11, 2009
For Immediate Release For Boomers & Seniors
For Immediate Release
February 6, 2009
Contacts: David Ottalini, 301 405 4076 or dottalin@umd.edu
Surviving Troubled Times
COLLEGE PARK, Md. - "You cannot fix the economic crisis but you can survive. The following tips for those at both ends of the financial spectrum can help your psychological survival," writes Nancy Schlossberg, professor emerita at the University of Maryland and author of Revitalizing Retirement: Reshaping Your Identity, Relationships and Purpose.
Her advice for adapting to the nation's growing financial crisis includes these tips:
Take "For Now Jobs" Today; Dream About Tomorrow's Career.
Maintain A Strong Psychological Portfolio.
Change Your Perspective From Money to Mattering.
Surviving in Troubled Times
By Nancy K. Schlossberg
With car dealerships closing at breakneck speed, Sue, a top salesperson making over six figures, realized that her financial survival depended on facing reality and making plans. She wrote: "I am going to work for Publix Super Market. I have many years of management experience and plan on working to get back up to management level - even though I will start at the checkout counter."
Larry, a roofer who owned his own company, also saw the handwriting on the wall. His clients were not paying their bills and he recognized that his work was drying up. He therefore searched and located a larger company that would survive in these economically troubled times - a company that repaired roofs at places like the Smithsonian and the White House.
These optimistic stories do not make up for the over 11.1 million unemployed who are on the brink of financial disaster. I continue to hear, words of distress and confusion:
"We cannot pay our mortgage and it looks like foreclosure is ahead of us;"
"It's like an out of body experience. I cannot believe it is happening to me;"
"I just canceled my surgery, since it was elective."
Whether you are a millionaire (probably losing at least 30 to 40 percent of your assets), or a construction worker unable to find work, you are facing the same common enemy. You cannot fix the economic crisis but you can survive. The following tips for those at both ends of the financial spectrum can help your psychological survival.
Tip 1: Take "For Now Jobs" Today; Dream About Tomorrow's Career.This is the time to think about short-term goals like eating and survival and long-term goals like positioning yourself for a productive future. Jan Alston, career advisor at the Women's Resource Center of Sarasota County, advises clients to take "For Now Jobs" in order to survive these bad times at the same time planning for a future dream job. This might be the time to return to school and get training for the future.
Tip 2: Maintain A Strong Psychological Portfolio.McCain and Palin used Joe, the ersatz plumber, to illustrate what ordinary people need. I know Jim, an actual policeman, whose life after retirement provides clues to what leads to happiness. Deflated when he retired from his demanding but rewarding career, he told me, "I turned in my gun and badge and that was that." In other words, his Psychological Portfolio - his Identity, Relationships with colleagues, and Purpose - were diminished. To replace these, he moved into hotel management and once again regained his Identity and Purpose as he formed new Relationships.
Tip 3. Change Your Perspective From Money to Mattering.The economic downturn provides the opportunity to rethink how much money you need to live and be happy. Assuming you are not at the poverty level, the biggest challenge is realizing that money isn't necessarily the answer to happiness. In fact, it is about everyone's need to feel appreciated, noticed, depended upon - that you count in others' lives.
If you are fired and cannot reach the unemployment office to register for benefits, if you do not qualify for benefits because of some technicality, you will feel you do not matter to the larger community. If this happens to you, it is critical that you call attention through letters to the editor, calls to talk radio, blogs pointing out the many ways the larger community has undercut you and others. But when you are shown appreciation, respond to that too.
Mattering matters.
Nancy K. Schlossberg is professor emerita at the University of Maryland and author of "Revitalizing Retirement: Reshaping Your Identity, Relationships and Purpose."
MEDIA CONTACTS
Neil Tickner
Senior Media Relations Associate
University of Maryland
301-405-4622ntickner@umd.edu
David Ottalini
Senior Media Relations Associate
University of Maryland
301-405-4076dottalin@umd.edu
February 6, 2009
Contacts: David Ottalini, 301 405 4076 or dottalin@umd.edu
Surviving Troubled Times
COLLEGE PARK, Md. - "You cannot fix the economic crisis but you can survive. The following tips for those at both ends of the financial spectrum can help your psychological survival," writes Nancy Schlossberg, professor emerita at the University of Maryland and author of Revitalizing Retirement: Reshaping Your Identity, Relationships and Purpose.
Her advice for adapting to the nation's growing financial crisis includes these tips:
Take "For Now Jobs" Today; Dream About Tomorrow's Career.
Maintain A Strong Psychological Portfolio.
Change Your Perspective From Money to Mattering.
Surviving in Troubled Times
By Nancy K. Schlossberg
With car dealerships closing at breakneck speed, Sue, a top salesperson making over six figures, realized that her financial survival depended on facing reality and making plans. She wrote: "I am going to work for Publix Super Market. I have many years of management experience and plan on working to get back up to management level - even though I will start at the checkout counter."
Larry, a roofer who owned his own company, also saw the handwriting on the wall. His clients were not paying their bills and he recognized that his work was drying up. He therefore searched and located a larger company that would survive in these economically troubled times - a company that repaired roofs at places like the Smithsonian and the White House.
These optimistic stories do not make up for the over 11.1 million unemployed who are on the brink of financial disaster. I continue to hear, words of distress and confusion:
"We cannot pay our mortgage and it looks like foreclosure is ahead of us;"
"It's like an out of body experience. I cannot believe it is happening to me;"
"I just canceled my surgery, since it was elective."
Whether you are a millionaire (probably losing at least 30 to 40 percent of your assets), or a construction worker unable to find work, you are facing the same common enemy. You cannot fix the economic crisis but you can survive. The following tips for those at both ends of the financial spectrum can help your psychological survival.
Tip 1: Take "For Now Jobs" Today; Dream About Tomorrow's Career.This is the time to think about short-term goals like eating and survival and long-term goals like positioning yourself for a productive future. Jan Alston, career advisor at the Women's Resource Center of Sarasota County, advises clients to take "For Now Jobs" in order to survive these bad times at the same time planning for a future dream job. This might be the time to return to school and get training for the future.
Tip 2: Maintain A Strong Psychological Portfolio.McCain and Palin used Joe, the ersatz plumber, to illustrate what ordinary people need. I know Jim, an actual policeman, whose life after retirement provides clues to what leads to happiness. Deflated when he retired from his demanding but rewarding career, he told me, "I turned in my gun and badge and that was that." In other words, his Psychological Portfolio - his Identity, Relationships with colleagues, and Purpose - were diminished. To replace these, he moved into hotel management and once again regained his Identity and Purpose as he formed new Relationships.
Tip 3. Change Your Perspective From Money to Mattering.The economic downturn provides the opportunity to rethink how much money you need to live and be happy. Assuming you are not at the poverty level, the biggest challenge is realizing that money isn't necessarily the answer to happiness. In fact, it is about everyone's need to feel appreciated, noticed, depended upon - that you count in others' lives.
If you are fired and cannot reach the unemployment office to register for benefits, if you do not qualify for benefits because of some technicality, you will feel you do not matter to the larger community. If this happens to you, it is critical that you call attention through letters to the editor, calls to talk radio, blogs pointing out the many ways the larger community has undercut you and others. But when you are shown appreciation, respond to that too.
Mattering matters.
Nancy K. Schlossberg is professor emerita at the University of Maryland and author of "Revitalizing Retirement: Reshaping Your Identity, Relationships and Purpose."
MEDIA CONTACTS
Neil Tickner
Senior Media Relations Associate
University of Maryland
301-405-4622ntickner@umd.edu
David Ottalini
Senior Media Relations Associate
University of Maryland
301-405-4076dottalin@umd.edu
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