Here’s what financial experts suggest for a 401(k) in a bear market

The fraud involved selling securities — in the form of membership units in a real estate investment fund known as the NRIA Fund — to at least 1,800 investors, 380 of whom were located in New Jersey.

The U.S. central bank last week announced the most aggressive interest rate hike in nearly 30 years and pledged to take further steps to combat rising prices, with gasoline and food costs soaring and millions of Americans struggling to make ends meet.

For many years, Americans provided for their retirement needs through three sources: employer-sponsored pension plans, Social Security income and savings and investments accumulated through employer plans or individual accounts— the so-called "three-legged stool."

Federal Reserve Chair Jerome Powell won praise for his deft leadership during the maelstrom of the pandemic recession. As threats to the U.S. economy have mounted, though, Powell has increasingly struck Fed watchers as much less sure-footed.

With inflation at highs not seen since the early 1980 s, the Federal Reserve is attempting to tame the beast of higher prices through aggressive interest rate hikes. The Fed raised rates by three-quarters of a point Wednesday, the largest increase since 1994.

"A slightly more severe recession" in the United States will occur sooner than expected as a result of a more aggressive Federal Reserve and tighter financial conditions, economists at Deutsche Bank AG said. At the time, Deutsche Bank was one of the first major banks to forecast a U.S. recession, and other economists and market watchers have since followed suit.

The Securities and Exchange Commission charged registered broker-dealer Western International Securities, Inc. and five of its registered representatives, or brokers – Nancy Cole, Patrick Egan, Andy Gitipityapon, Steven Graham, and Thomas Swan – with violating Reg BI.

Federal Reserve Chair Jerome Powell has pledged to do whatever it takes to curb inflation, now raging at a four-decade high and defying the Fed's efforts so far to tame it. Increasingly, it seems, doing so might require the one painful thing the Fed has sought to avoid: A recession.

The Federal Reserve’ s decision Wednesday to raise interest rates will make borrowing more expensive for consumers. The average annual percentage rate for new vehicles climbed to 5.1% in May, the highest level seen since the start of the pandemic, according to data from Edmunds.com, a vehicle research company.

As expected, the interest rate that banks charge each other to lend money increased, in an attempt by the U. S. Federal Reserve to force the economy to slow down and prevent inflation from continuing to grow to unsustainable levels for both businesses and consumers.

Once you' ve been in this world for half a century, it's time to get serious about retirement and your financial planning. For many, their 50th birthday is a chip change to really start thinking about the future. When will working become optional?

Managing 401(k) and other retirement plans allows you to own the entire financial relationship with your business owner clients and are a great additional revenue stream, since participants are adding money consistently with each paycheck.

This year, would-be homebuyers are facing another hurdle: Home mortgage rates are going up. In late 2021, 30-year fixed mortgage rates hovered at 3.1 percent. For a person buying a $400,000 home with a 5 percent down payment, that would translate to $1,623 a month over 30 years, according to figures from the New Hampshire Housing Finance Authority.

The Federal Reserve is making borrowing much costlier. Is the United States at risk of enduring another recession, just two years after emerging from the last one? “Nothing in the U.S. data is currently suggesting a recession is imminent, "Rubeela Farooqi, chief U.S. economist at High Frequency Economics, wrote Tuesday.

Low consumer confidence is a key risk to the stock market and the U.S. economy, while the Federal Reserve is poised to continue fighting rising inflation with rate increases, they wrote. Meanwhile, Goldman Sachs Group Inc. strategists led by David J. Kostin said U.S. earnings estimates are still too high and he expects them to be revised further down.

The stock market's brutal year neared a grim milestone as the S&P 500's slide on Monday threatened to leave it in a bear market for the first time since March 2020, fueled by worries over sky high inflation, a hawkish Federal Reserve and future economic growth.

U.S. Federal Reserve officials, beset by ongoing high inflation and amid a weakening growth picture, will lay out on Wednesday how they think their increasingly difficult goal of cooling the economy without sending it into a tailspin may play out in the months ahead.

Retirement can seem confusing for some clients, in large part due to the financial jargon involved. This may lead them to put off retirement planning or avoid it altogether. Help ensure your clients are prepared to retire by guiding them through the confusing financial jargon.

The global economy has endured a series of shocks over the last few years as COVID shutdowns, unprecedented stimulus, supply chain seize-ups and Russia's invasion of Ukraine have all created significant challenges. Citi believes the worst of U.S. consumer price inflation has already passed.

After wandering lower the past four weeks, mortgage rates sharply reversed course this week. According to the latest data released Thursday by Freddie Mac, the 30- year fixed-rate average increased for the first time in a month, climbing to 5.23 percent with an average 0.9 point.

With just days left of the extended comment period, more than 230 letters have been submitted to the Securities and Exchange Commission over its “Private Fund Advisers; Documentation of Registered Investment Adviser Compliance Reviews.”

The Securities and Exchange Commission today charged audit firm CohnReznick LLP with improper professional conduct on engagements for two clients in 2017.

More and more workers are following the advice of experts when it comes to saving for retirement, even when finances seem precarious. That's because 401 plans are using a simple human trait to guide us: our inclination to do nothing.

The World Bank on Tuesday slashed its global growth forecast for this year due to the war in Ukraine and warned of the risks of a “prolonged period of low growth and high inflation,” especially for low-income countries.

With half-point interest rate hikes all but certain in June and July, Federal Reserve policymakers are shifting the focus away from a destination for rate hikes to something that is harder to determine and explain: the broader impact of their policies on the economy.

Paul Krugman, winner of the 2008 Nobel Prize in Economics, questioned the new cycle of interest rate hikes by the US Federal Reserve, arguing that there is no empirical evidence that inflation at 2%- the reference target for major central banks- is more favorable for an economy than 4%.

Well, here we are on the cusp of another bear market. If the S&P 500 falls a few more percentage points from the time of the writing of this column, we'll be in our fourth bear market in 22 years. But nobody knows how this process will proceed and what's in store for markets as the Federal Reserve ramps up its inflation-fighting activity.

According to Charles Schwab’s SDBA Indicators Report, an industry-leading benchmark on retirement plan participant investment activity within self-directed brokerage accounts (SDBAs), the average account balance across all participant accounts finished Q1 2022 at $332,017, a 0.51% decrease year-over-year and a 6.25% decrease from Q4 2021.

Federal Reserve Bank of Cleveland President Loretta Mester favored raising interest rates by 50 basis points this month and next, but cautioned that pace could accelerate, or slow, starting in September, depending on what happens to inflation.

Federal Reserve Vice Chair Lael Brainard said on Thursday that elevated inflation is the Fed's "number one challenge" and that she supports at least a couple more interest rate hikes of half a percentage point, with further hikes ready if price pressures do not cool.

The president of the Federal Reserve district in St. Louis, James Bullard, said on Wednesday that he considers adequate the current level of interest rate increases of 50 basis points at each meeting of the Federal Open Market Committee.

An Ipsos market research study found that 86% of employees believe it’s important for their own employer to be responsible to society and the environment. In a nutshell, this is how a B Corp operates.

Consumer borrowing is surging as inflation hovers near 40-year highs and Americans resume pre-pandemic activities like traveling and dining out, posing risks for lower-income borrowers. A persistent rise in missed payments could lead banks to pull back on lending to people with poor credit histories, putting more stress on that group.

Here are five things advisors can prepare to do to leverage SECURE 2.0 to better serve clients and grow their businesses.

The three largest credit bureaus – TransUnion, Equifax and Experian – will clear medical debts from consumer credit reports beginning in July. If the debts have been paid in full but are still on a credit report as a negative mark, the adverse notes will be removed. Normally such derogatory statements stay on a person’s credit report for up to seven years.

Pessimism abounds about the U.S. economy. To fight inflation, the Federal Reserve is hiking interest rates, and when the Fed starts pumping the brakes, a recession often follows.

An inflation gauge closely tracked by the Federal Reserve rose 6.3% in April from a year earlier, the first slowdown since November 2020 and a sign that high prices may finally be moderating, at least for now. “Inflation is finally slowing, but it’ s a little early for high-fives,” said Bill Adams, chief economist at Comerica Bank.

Reasons for this year’s 15-20% slide in benchmark stock indices are well documented – rising interest rates to rein in soaring post-pandemic inflation rates that have been exaggerated by a Ukraine-related energy and food price shock that has also pummelled household incomes and corporate margins.

New research from The American College of Financial Services indicates that independent financial advisors and consumers are aligned on the need for specialized services, especially those focused on retirement income planning.

The SEC is proposing amendments to rules and reporting forms to promote consistent, comparable, and reliable information for investors concerning funds’ and advisers’ incorporation of environmental, social, and governance (ESG) factors.

Clients find Social Security confusing. Here are some case studies that can help them make the best decisions on maximizing benefits.

We are stuck with the stock market. It’s a casino without the free drinks, created, in large part, to concentrate wealth in the hands of a few. But it’s also an efficient allocator of capital to businesses and a powerful tool for wealth creation, even for the individual saver/investor.

Sales of new U.S. single-family homes tumbled to a two-year low in April, likely as higher mortgage rates and record prices squeezed first-time buyers and those in search of entry-level properties out of the housing market. The fourth straight monthly decline in sales was reported by the Commerce Department on Tuesday.

U.S. central bankers broadly back two more big rate hikes in June and July, but what happens next is a matter of intense internal debate that revolves largely around differing views on how price pressures will play out in the coming months.

The SEC charged BNY Mellon Investment Adviser, Inc. for misstatements and omissions about Environmental, Social, and Governance (ESG) considerations in making investment decisions for certain mutual funds that it managed.

Wall Street was poised for some relief Monday, with the major U.S. indexes moving higher in morning trading after last week's dizzying volatility. Investors appear to lack confidence the Federal Reserve can tame roaring inflation without tipping the economy— which is already slowing amid a wide range of head winds— into a recession.

According to Wikipedia, spring cleaning “is the practice of thoroughly cleaning a house in the springtime.” There are many spring-cleaning tips and lists on the internet for those interested. However, there is no mention of a spring checkup on finances during this cleaning period.

Still recovering from pandemic-induced challenges, US small businesses are failing to plan for the long term.

U.S. stock investors discount higher recession probabilities than are evident from positive macroeconomic indicators, according to strategists at Goldman Sachs Group Inc.. U.S. stocks have taken a beating this year as signs of stubbornly high inflation and a tightening Federal Reserve raise the specter of an economic recession.

Consumers were most concerned last year about being able to live debt-free. But now they are much more worried about being able to pay their bills, with half of Americans anxious about it, according to an Equifax report.

Evidence that red-hot inflation is seeping into the economy is sending a chill through investors after major U.S. retail groups showed people are cutting back on buying bigger items to make ends meet.

As financial planners, we know it can sometimes be difficult to encourage individuals to save money for their future especially those in low-income minority communities. Once individuals decide to take the right steps towards saving, we’re then tasked with the more complex topic: investment choices.

The bottom line is that an estate plan can have a tangible impact on your life. In the event someone dies without a will, or intestate, the court decides how your assets will be distributed. Different states have different rules regarding dividing your assets without a will or an estate plan.

Jim Rohn, one of the original great personal development teachers, used to say, “If you want things to change, you have to change. If you want things to be better, you have to be better.” This wisdom is incredibly simple and powerfully profound.

As a record number of Americans are heading into their retirement years with impressive balances in their 401 plans, the potential disruption of this long bull market has many people trembling. The prospect of actually losing money just as they need to plan retirement living withdrawals is truly frightening for this generation of amateur investors.

Bashing the Federal Reserve for uncorking inflation has become a parlor game— never mind that the Fed also saved the nation from a pandemic depression and that inflation is set to fall sharply. For the third time this century, the Federal Reserve has responded belatedly to signs of a bubble.

The demand for complex financial products is increasing significantly, especially among mass affluent investors. This historically overlooked group no longer relies exclusively on exchange-traded funds and mutual funds. Instead, mass affluent investors are starting to branch out and opt for alternatives, structured products, even art and other non-bankable assets.

An exceptionally robust job market. The Federal Reserve raising interest rates at a rapid clip. Overheated financial markets starting to correct themselves, with the frothiest sectors bearing the brunt. That's the situation today — and was also the situation in the spring of 2000, when the dot-com bubble started to burst.

A study group consists of individuals working together to solve difficult cases and garner business advice from peers. What binds the group together is shared goals, as well as expectations or guidelines established by the group.

In a survey, financial advisors scored just as poorly as mechanics on trustworthiness among investors who don’t currently work with an advisor. But that could change as a new rule allows advisors to solicit and promote client testimonials.

The Senate confirmed Federal Reserve Chair Jerome H. Powell to a second term leading the central bank on Thursday, as he faces the enormous task of slashing the highest inflation in 40 years without sending the country into a recession. The Senate supported Powell to another four year term by a vote of 80-19.. "Few institutions are more important to help steer our…

The Great Resignation along with its possible causes was one of the key topics of discussion at the Spring Policy…

Finding and keeping talent is the greatest challenge for registered investment advisors (RIAs), according to a survey by Advisor Growth Strategies. This hunt for the right people is fueling a record-setting mergers and acquisition (M&A) climate.

Cryptocurrency trading platform Coinbase has lost half its value in the past week, including its biggest one-day drop ever on Wednesday as the famously volatile crypto market weathers yet another slump.

The financial strength built up in U.S. households limited the damage from the coronavirus pandemic but may now be aggravating – and prolonging – the Federal Reserve’s inflation fight as the central bank waits for people to run out of spending power.

Despite Americans’ worries about health care and long-term care costs in retirement, they still desire to live longer, and nearly seven in 10 Americans (69%) want to live to age 100.

Is the United States at risk of enduring another recession, just two years after emerging from the last one? For now, even the more pessimistic economists don’t expect a downturn anytime soon.

The millennial generation (aged 26-41) has been pegged with stereotypes of careless spending and saving habits since the early 2010s. However, with the oldest members of this generation now entering their 40s, they are busting out-of-date perceptions by applying what they’ve learned after living through past financial crises.

The Federal Reserve Bank of New York’s Center for Microeconomic Data showed households are positive about their job prospects and also plan to spend more money.

Expectations of a hawkish Federal Reserve are dimming Wall Street’s outlook for stocks, with some investors now bracing for a potential bear market in the benchmark S&P 500 index.

You know that feeling when you’re having a delightful time at a picnic, but you start seeing storm clouds in the horizon? That’s pretty much what prospects for retirement look like for most working Americans, according to the latest annual survey by the Employee Benefit Research Institute and Greenwald Research.

Since the end of December, interest on the average 30-year fixed-rate mortgage has nearly doubled to more than 5%, prompting predictions of an end to bidding wars and runaway home prices. That would raise the typical monthly payment on a $300,000 mortgage payment by more than $390 or 32%.

Low interest rates, investors’ ongoing search for yield, and strong acquisitions activity continue to create a supportive environment for real estate financing and alternative lenders across the globe, contributing to a record $22.38 billion in worldwide originations last year for PGIM Real Estate.

The Federal Reserve raised its benchmark interest rate by half a percentage point yesterday, Wednesday, May 4, to a range of 0.75% to 1%. This is the first increase of this magnitude since 2000, in order to control inflation in the United States.

For all the emphasis and excitement over helping clients efficiently accumulate assets and accomplish their goals, it’s quite often that how the client makes a living goes into the financial plan as a “snuck premise,” a sort of status quo fact that simply underlines the cash flow projections of the financial plan.

Stock market investors are heading into the U.S. Federal Reserve's rate-setting announcement particularly pessimistic, with fresh milestones for bond yields and worries about rocketing inflation weighing on sentiment as the central bank is expected to hike rates further.

The Federal Reserve is poised this week to accelerate its most drastic steps in three decades to attack inflation by making it costlier to borrow- for a car, a home, a business deal, a credit card purchase- all of which will compound Americans' financial strains and likely weaken the economy.

A swift shift in investor enthusiasm, rather than a weakening in corporate profit power, is driving the market’s recent flop. Blame Powell. Or Putin. Or both. The big picture: The stock market is on track for the worst year since 2008, falling nearly 13% so far in 2022.

An increasing number of employers are offering financial-wellbeing programs to their employees as they seek to improve overall worker satisfaction, reduce financial stress, increase productivity, and make improvements to retirement plans and other employee-benefit programs.

Living paycheck to paycheck has become the dominant way people manage their cashflow in the United States, with close to two-thirds of the U.S. population, 64% or about 166 million adults, doing so in March 2022.

Being an ally and supporter of your diverse staff, colleagues and friends within our industry involves intentionality, vulnerability and the quest for lifelong learning. These three podcasts are excellent places to keep in touch with the latest DEI issues and developments.

Here’ s an understatement: It’ s been a lousy year for investors. With inflation a serious problem for the first time in 40 years, the Federal Reserve can’ t ride to the rescue by cutting interest rates as it has done in recent market meltdowns. The Fed will push rates higher until inflation goes lower.

Here’ s an understatement: It’ s been a lousy year for investors. With inflation a serious problem for the first time in 40 years, the Federal Reserve can’ t ride to the rescue by cutting interest rates as it has done in recent market meltdowns. The Fed will push rates higher until inflation goes lower.

If there were a golden age of retirement, it would be now. For most of human history people worked until they were physically unable, and then spent the remainder of their lives either poor or dependent on family.

Last week, Fannie Mae, the government-sponsored lender, predicted that tightening monetary policy at the federal level could bring a “modest recession in the latter half of 2023 as we see a contraction in economic activity.”