Image your practice 10 years from now and think about the world we might be working in. What comes to mind? What does your client base look like? Where does your business come from? How might you start laying the tracks today for future opportunities? Enough questions, it’s answer time: if I’m in your shoes, two areas I might start to invest in are Generation Y and Hispanic investors.
We’ll hit on Gen Y in another post, for now let’s focus on the Hispanic market. I recently read a whitepaper that estimates in the next 20 years Hispanics will represent 31% of the work force.1 That’s a tremendous amount of growth, and more and more Hispanic employees will have access to some type of retirement plan.
Although retirement is not a new concept to U.S. Latinos, planning for retirement does have different meanings, and “saving” may not necessarily be part of it, especially for those who are in the early stages of an immigrant experience. Working with Hispanic employees is more than just speaking Spanish. It’s about cultural influence. Read more
Costumes, trick-or-treating and jack-o-lanterns are all part of modern Halloween celebrations in the United States. Yet, few in the U.S. know the history of this holiday and the significance it played in early society.
Halloween traces its roots to the ancient Celtic festival of Samhain. Two-thousand years ago, the Celtics (now modern day Ireland) celebrated the New Year on November 1. The day represented the end of the harvest and the transition to winter. Read more
Since this is my final blog in my “So You’ve Frozen Your DB plan – Now what?” series, I’m wondering if you are humming any songs in your head yet? Any guesses on what song I’m connecting these blogs to? I’ll give you two hints. Hint #1 – Sir Paul wrote it.
As I’ve been discussing, there are generally three steps a plan sponsor can consider when winding down their frozen defined benefit (DB) plan (that’s your #2 hint!). Today, I’d like to discuss the third step – develop an asset allocation strategy.
A new cottage industry has emerged in the financial world called “behavioral finance theory” (BFT). The foundation of BFT is that people often make decisions that rational economic theory fails to predict. In other words, there is something about human nature that drives us to make different choices around money and finances that a formula or financial plan might otherwise suggest we do.
Laurie Santos*, Director of Yale University’s Comparative Cognition Laboratory and Associate Professor at Yale University, and her colleagues conducted very interesting research regarding this subject. It involved a series of experiments involving capuchin monkeys (a good proxy for human behavior) that explored a handful of key behaviors as they related to behavioral finance theory. Read more
Despite conventional wisdom that says one shouldn’t discuss religion or politics in social situations, I invariably find myself in conversations about one or both. Thankfully the discussions regarding religion have never touched on something as philosophical as the “Seven Deadly Sins” (I was definitely not a philosophy major!). But the concept got me thinking about the mistakes that 403(b) plan sponsors make—the “Seven Administrative Sins” if you will, that can put a non-profit plan in real jeopardy.
While the majority of “sins” are committed unknowingly, they have the potential to create some real administrative and compliance-related issues for plan sponsors—problems that could be avoided and rectified with the help of a financial professional. In the first installment of this series, I will go over the first two sins—the problems that surface as we at the Principal Financial Group® are assisting a plan sponsor. Read more