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Record 401(k) Participation at Vanguard Plans

The Big Picture

The firm’s release of How America Saves is chock full of data and charts showing how 401k savings have reached all-time highs at Vanguard; I expect other large plan managers like Fidelity and Schwab to be at or near similar levels. Vanguard is out with its annual deep dive into what its 5 million 401k participants are up to.

Planning 289
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Nudging Investors into Better 401k Behavior

The Big Picture

They have seen a significant uptick in overall participation rate, which has increased from 62% in 2006 to 82% in 2021. More employer plans are adopting automatic enrollment, a small nudge often credited to Nobel prize-winning economist Richard Thaler. Eligible employees deferred nearly 40% more in 2021 than in 2006.

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The 2024 Kenneth Black Jr. Leadership Award Winner Is Mike McGlothlin

NAIFA Advisor Today

He is the author of several books, including Free Throws for Financial Professionals: Winning Principles for Unlocking Business Success, Above the Clouds: Winning Strategies from 30,000 Feet, and The New Rules of Retirement Planning. He has demonstrated his personal commitment as a lifelong learner and educator and ethical professional.

Ethics 138
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MBA: Mortgage Applications Decrease in Latest Weekly Survey; Purchase Activity 7% Below Pandemic Low

Calculated Risk

percent, the highest level since 2006. However, it also pushed off the possibility of any near-term pivot from the Federal Reserve on its plans for additional rate hikes.”. “Mortgage rates moved higher once again during the first week of the fourth quarter of 2022, with the 30- year conforming rate reaching 6.81 percent from 6.75

Planning 316
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Lawler: Some Observations on the Federal Reserve’s Balance Sheet Wind-Down and Reinvestment “Strategy” (Still in Quantitative Easing Mode, Just Less So)

Calculated Risk

By way of comparison, Treasury bills accounted for 35% of total Fed Treasury holdings at the end of 2006. These strategies would further implement the policy laid out in the Committees Principles and Plans for Reducing the Size of the Federal Reserves Balance Sheet. Second, the Fed only held a paltry 3.1%

Assets 165
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Why Guyton-Klinger Guardrails Are Too Risky For Most Retirees (And How Risk-Based Guardrails Can Help)

Nerd's Eye View

One method introduced by Jonathan Guyton and William Klinger in 2006 is the "guardrails" framework. On the other hand, in a time of weak market returns (that resulted in the withdrawal rate rising 20% higher than the initial rate), dollar withdrawals would be reduced by 10% (to avoid exhausting the portfolio).

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Three Things I Think I Think – Weekend Reading

Discipline Funds

For example, if you’d purchased a home in 2006 at the precise peak in home prices you’d go 15 years until you were even (using real returns). If you plan on living somewhere for a long time then you should seriously consider buying. It was even worse if you purchased in the late 70’s.

Assets 98