The rapid development of the exchange-traded fund industry has brought to market some of the most useful and intriguing products for all walks of investors. With more than 1,400 ETPs offering exposure to just about every asset class, developed and emerging economy, and investment strategy, the potential portfolio combinations are endless. Although investors can dip into some of the more complex andintriguingfunds, most choose to select a number of ETFs that will allow them to build a well-diversified portfolio. But thanks to the innovativeness of ETF issuers, there is now an entire line of products that takes this strategy to the extreme, offering access to a complete portfolio through a single equity ticker [see alsoHow To But The Right ETF Every Time].

Enter target retirement date ETFs, the ultimate in passive, buy-and-hold investment strategy. To pick which of these funds is right for you, investors must simply select the ETF that corresponds to his or her intended retirement date (e.g. 2030 fund), the rest is left to the ETFs manager. These hands-free portfolios are essentially designed to shift asset allocations with an investorss changing risk profile. For example, as an investor approaches his or her retirement, a higher allocation will go to fixed income products, while a younger investor would have a heavier weighting towards equity exposure.

Heres a look at six iShares Target Retirement Date ETFs and how these funds change over time:

As depicted graphically above, the S&P Target Date 2040 Fund (TZV) has a much higher allocation to domestic and international equities, while the S&P Target Date 2015 ETF (TZE) has a larger weighting in fixed income. Logically, this makes sense since an investor with a target date of 2040 is likely much younger than someone who wishes to retire in 2015. And as such, a person who has a longer time horizon over which they are able to recover value in event of major losses can have more exposure to riskier asset classes, like stocks, which may be more volatile but could provide a more meaningful return. But for those who plan to retire in the near future, a low risk tolerance is more appropriate since these individuals have less time torecuperatefrom any adverse movements [see also5 Worst ETF Strategies Of The Last 5 Years].

Over time, these target retirement date ETFs will evolve, shifting allocations to asset classes with risk profiles that are more inline with investors objectives. So in the next 25 years, one would expect the 2040 fund to gradually shift away from equities towards bonds, eventually forming a portfolio that is very similar to how the 2015 fund looks today.

To achieve the different portfolio compositions, target retirement date ETFs actually invests in other exchange-traded products, essentially becoming a sort of fund of funds. iShares, for example, invests in its own ETFs, includingthe S&P 500 Index Fund (IVV), Barclays Aggregate Bond Fund (AGG), MSCI EAFE Index Fund(EFA), and S&P Midcap 400 Index Fund (IJH) [see our Retirement ETFdb Portfolios].

The adaptability of these funds is perhaps one of the most obvious reasons investors choose to invest in target retirement date ETFs. Once one of these ETFs are purchased, investors can sit back and let the security shift allocations to the most appropriate asset classes which best reflect the holders risk profile. Furthermore, investors wont have to sift through the over 1,400 ETPs to build their long-term portfolios. Instead, a single equity ticker provides fine-tuned exposure to a diversified basket of securities. But because these ETFs are funds that hold other ETFs, holders will have to burden a double layer of fees. While these expenses might be relatively low, they can add up over a long period of time. Potential investors should also take a close look under the hood of these ETFs since they only follow general rules to determine allocations, meaning that the resulting portfolio may not be exactly in line with your investment objective.

Follow me on Twitter@DPylypczak

[For more ETF analysis, make sure to sign up for ourfree ETF newsletteror try afree seven day trial to ETFdb Pro]

Read the rest here:
Visualizing Target Retirement Date ETFs

ST. PAUL, Minn.--(BUSINESS WIRE)--

Retirement plan participants can now find a QR (quick response) code on their quarterly Securian account statements and envelopes that provides instant access to account information.

When scanned with a smartphone equipped with a camera and the reader application, the QR code directs participants to Securian Retirement's mobile site to obtain current account balances, contribution rates, and personal rates of return on their retirement accounts.

Participants want to see their information anytime, anywhere. The QR codes and mobile site give them access to their accounts whether theyre at the airport, the mall or sitting in front of the TV, said Rick Ayers, vice president, Retirement Plans.

Securian Retirements mobile site, designed and built in-house, does not attempt to replicate all the information on the full website. Rather, it provides the information people want frequently and quickly. The mobile site appears automatically when viewed from a smartphone and is designed for easy use.

We pushed the account contact links up to the top of the screen, kept the copy concise, included one-touch embedded links and made the navigation simple and intuitive, said Ayers.

Plan participants also can go to the full website to sign up for electronic statements rather than receive paper statements through the postal service.

Since 1880, Securian Financial Group and its affiliates have provided financial security for individuals and businesses in the form of insurance, investments and retirement plans. Now one of the nations largest financial services providers, it is the holding company parent of a group of companies that include Minnesota Life Insurance Company and Securian Life Insurance Company, a New York admitted insurer.

DOFU 0812 A03173-0812

Go here to read the rest:
QR Codes Provide Quick Securian Retirement Account Access for Employees

(Money magazine) -- I'm 46, self-employed and clueless about retirement. I can afford to put away $500 a month, but don't even know where to begin. I'd like to retire at 65, but wonder if that's even possible. Can you help? -- George, Alsip, Illinois

You're getting a late start here. Ideally, by the time you're in your mid-40s, you should already have savings equal to three to four times your annual income tucked away in retirement accounts, according to "Your Money Ratios" author Charles Farrell.

That figure assumes you'll want to retire at 65 on 70% to 80% of your pre-retirement income. It also assumes your savings will earn about four-and-a-half percentage points more than inflation each year, and that you'll continue to save 15% of income annually until age 65.

But let's just focus on what you need to do now. If you start saving now and stay diligent, you can improve your retirement prospects dramatically.

Many people in your position think picking the best investments is the key. Not so. Saving is much more crucial.

Get the ball rolling by putting that $500 a month you already know you can afford to save into an IRA account, which you can open at any mutual fund company or investment firm. Don't obsess about whether to go with a traditional IRA or a Roth IRA. If you prefer getting a tax deduction now, go with a traditional. If you'd rather forego the deduction today for the prospect of tax-free withdrawals in retirement, do the Roth. If you're unsure, do the traditional, as you can always convert to a Roth later.

Chances are you're eligible to contribute up to the maximum of $5,000 this year ($6,000 for people 50 and older), but you can check by clicking here.

To keep things simple, I suggest you invest your IRA stash in a target-date retirement fund. You just choose a fund with a date that corresponds to when you'd like to retire (2030 or 2035 in your case) and you get a ready-made portfolio that's appropriate for you now and becomes more conservative as you near retirement.

We highlight the target funds of Vanguard and T. Rowe Price on our MONEY 70 list of recommended funds, but both companies require a minimum initial investment of $1,000. You could open an IRA and invest in a target fund with Charles Schwab for as little as $100.

Once you've set up your IRA account and have savings flowing into it, you should start thinking about how you might improve on your planning for next year and beyond.

Read more:
Late start retirement plan - 19 years to go

LOS ANGELES--(BUSINESS WIRE)--

Transamerica Retirement Services today announced that its plan participant and plan sponsor websites have both been recognized with an Excellent designation through DALBARs first quarter Defined Contribution WebMonitor program, outperforming more than 40 other retirement plan provider websites rated in the study.

Transamericas plan participant website earned a score of 93.35 out of a possible 100, an increase of 3.33 points since 4Q 2011, surpassing its own record WebMonitor score achieved by a plan participant website in the studys history. This is the second consecutive calendar quarter that Transamericas plan participant website has set a record score for the DALBAR report.

DALBARs reports are an important measure of how well we, and the industry, are serving plan participants and sponsors, said Stig Nybo, president of Transamerica Retirement Services. This honor is emblematic of Transamericas unwavering dedication to providing plan participants and sponsors with best-in-class online resources and guidance to help them reach specific retirement goals.

Furthermore, Transamericas plan sponsor website earned an Excellent designation the only site to do so among 42 peers and ranked in top position in DALBARs analysis of provider websites for retirement plan sponsors. Transamericas plan sponsor website has won this recognition for 10 consecutive calendar quarters.

Transamericas plan sponsor and plan participant websites have also been awarded DALBARs Seal of Excellence for eight consecutive years.

Each quarter, DALBAR identifies and recognizes industry-leading websites that attain a top-10 ranking. Rankings are determined by the overall score achieved against DALBARs criteria in five categories: functionality, usability, behavior centric attributes, content currency and consistency.

About DALBAR

DALBAR, Inc. is one of the financial communitys leading independent experts for evaluating, auditing and rating business practices, customer performance, product quality and service. DALBAR has earned recognition for its consistent and unbiased evaluations of investment companies, registered investment advisers, insurance companies, broker/dealers, retirement plan providers and financial professionals. DALBAR awards are recognized as marks of excellence in the financial community.

About Transamerica Retirement Services Corporation

The rest is here:
Transamerica Retirement Services Recognized by DALBAR as Top Provider Website for Retirement Plan Participants and ...

COLUMBUS, Ohio--(BUSINESS WIRE)--

In a commitment to growth and to develop executive talent, Nationwide Chief Executive Officer Steve Rasmussen announced today that the leaders for the companys retirement plans business and its property & casualty direct channel will be switching roles. Larry Hilsheimer will lead Nationwide Retirement Plans and Anne Arvia will lead Nationwide Direct, Affinity and Growth Solutions.

Nationwide is a strong company with many talented people. We remain fully committed to our public and private sector retirement plan business partners, to our direct, affinity and growth lines and to our members, said Rasmussen. My philosophy is that fresh leadership perspective and successful ideas from one area of the company will lead to benefits in another. We made similar leadership changes back in 2009 that were beneficial for our leaders and the company as a whole. Im confident the end result of the changes we are announcing today will make us even stronger and better able to deliver our On Your Side promise.

Larry Hilsheimer has been named President and Chief Operating Officer of Nationwide Retirement Plans. Nationwide is one of the leading providers of public and private sector retirement plans in the country. He will retain oversight of Nationwide Bank. Hilsheimer joined Nationwide as executive vice president and chief financial officer in 2007 coming from Deloitte & Touche USA, LLP where he served as partner, vice chairman and regional managing partner. He has served on the boards of several community organizations, including Nationwide Childrens Hospital, Battelle for Kids, the Columbus Downtown Development Corporation and The Ohio State University Alumni Association.

Anne Arvia has been named President and Chief Operating Officer of Nationwide Direct, Affinity and Growth Solutions (NDAGS). Arvia currently serves as the leader for Nationwide Retirement Plans. NDAGS includes Nationwides direct property & casualty sales channel, specialty insurance, affinity partnerships, and Veterinary Pet Insurance. Arvia joined Nationwide in 2006 as president of Nationwide Bank prior to assuming her role as leader of Retirement Plans in 2009. Prior to joining Nationwide, Arvia spent 15 years at ShoreBank in Chicago.

Additionally, Rasmussen announced that Mark Berven has been named Executive Vice President and Chief Strategy and Product Management Officer. In this new role, Berven will oversee strategy for the Nationwide enterprise and the product organization for property & casualty business lines. Berven joined Nationwide in 1994 and has served as a regional vice president and most recently as senior vice president of product and pricing for all P&C operations.

The changes are effective immediately. Hilsheimer will report to Kirt Walker, President and Chief Operating Officer of Nationwide Financial Services. Arvia will report to Mark Pizzi, President and Chief Operating Officer of Nationwide Insurance. Berven will report to Rasmussen.

About Nationwide

Nationwide Mutual Insurance Company, based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the U.S. and is rated A+ by both A.M. Best and Standard & Poors. The company provides customers a full range of insurance and financial services, including auto insurance, motorcycle, boat, homeowners, pet, life insurance, farm, commercial insurance, annuities, mortgages, mutual funds, pensions, long-term savings plans and specialty health services. For more information, visit http://www.nationwide.com.

Life insurance is issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio.

Originally posted here:
Nationwide Names New Leaders for Retirement Plans and P&C Direct Channel

WINDSOR-ESSEX, ON, Aug. 14, 2012 /CNW/ - Almost four years after they joined forces to boost the benefits of their region as an active retirement destination, the Windsor-Essex Active Retirement Initiative (WEARCI=WE-ARE-KEY), continues to attract new residents from across Canada at a steady pace.

Despite recent national reports indicating lower home and condo prices, declining sales and threats of a housing correction, the country's southernmost peninsula is bucking the trend. WindsorEssex is enjoying gains in both resale properties and new construction as growing numbers of boomers discover the region's appealing lifestyle and opportunities for newfound wealth.

A recent survey completed in June by The Windsor-Essex County Real Estate Board to update WEARCI's progress, and conducted with 42 per cent of the area's 840 REALTORS, indicated 225 new residents age 50-plus have relocated to the WindsorEssex region, investing $56 million in properties between October 2011 and June 2012.

Combined with surveys conducted between July 2010 and October 2011, WEARCI's latest survey results now bring the total to 885 new residents age 50-plus purchasing $228 million in real estate throughout the WindsorEssex region since the marketing initiative launched in 2009.

"We offer a unique location and lifestyle often misunderstood and overlooked, until now," stated Krista Del Gatto, Executive Officer of the Windsor-Essex County Association of REALTORS (WECAR), and volunteer President of the WEARCI organization. "Our initiative is working and returning economic spinoffs to our communities. The region is growing in awareness as the preferred destination for active retirement living," added Ms. Del Gatto.

Surveys show the nine communities that shape the 100 Mile Peninsula and Pelee Island region are attracting over 70 per cent of new residents from Ontario with 34 per cent from the Greater Toronto Area. Western provinces account for 20 per cent; Quebec and eastern provinces, 4 per cent; U.S. 2 per cent and International 3 per cent.

Ms. Del Gatto says the 100 Mile Peninsula advantage is beginning to 'register' especially among homeowners in high-priced markets who have the ability to cash out and relocate to similar or larger properties for 30 per cent - 60 per cent less, a move that could mean retirement five-ten years earlier.

Matt Marchand, President and CEO of the Windsor-Essex Regional Chamber of Commerce, also a WEARCI founding partner, said the organization has created the RetireHere Show to provide families considering a lifestyle change as well as small business owners interested in servicing the age 50-plus consumer, a venue for an 'up-close and personal' overview of the region and its rising popularity.

The first RetireHere Show is scheduled for the Greater Toronto Area, September 28, 29 at the Toronto Don Valley Hotel.Details are available at RetireHere.ca

About WEARCI

See original here:
Ontario's Retirement Hot Spot Continues New Resident Gains, Increased Real Estate Investment Despite National Downturn

LONDON -- The last five years have been tough for those in retirement. Portfolio valuations have been hammered and annuity rates have plunged. There's no sign of things improving anytime soon, either, as the eurozone and the U.K. economy look set to muddle through at best for some years to come.

A great way of protecting yourself from the downturn, however, is by building your retirement fund with shares of large, well-run companies that should grow their earnings steadily over the coming decades. Over time, such investments ought to result in rising dividends and inflation-beating capital growth.

In this series, I'm tracking down the U.K. large caps that have the potential to beat the FTSE 100 over the long term and support a lower-risk income-generating retirement fund (you can see the companies I've covered so far on this page).

Today, I'm going to take a look at Aviva (LSE: AV.L) (NYSE: AV) , a high-yield favorite with some Fools and the U.K.'s only composite insurer (it sells life insurance and general insurance).

Premium performance?Aviva currently offers an outstandingly high yield of 8.1%, something it has in common with its peer RSA Insurance Group. The reason for this is that both shares have chronically underperformed the FTSE 100 over the last 10 years, despite remaining profitable and paying solid dividends:

Total return

2007

2008

2009

2010

Read more:
Is Aviva the Ultimate Retirement Share?

When we get to a certain age -- kids launched or launching, our own parents frail or gone from us -- its only natural to start wondering about how the years are going to go and what we will do with the rest of them, along with where we will do it.

Kings Point, a documentary directed and produced by Sari Gilman, makes you think even harder about those questions. It features five people who years ago did what many older Americans choose to do: pull up stakes and move to a retirement resort where they can dance, play golf and cards or enjoy a broad array of other activities and hobbies cheek by jowl with other retirees.

But the years have rolled on for Jane, Mollie, Gert, Bea and Frank, and the times are no longer as easy and happy at Kings Point as they were when they first moved to Florida.

Frank is passing his days with Bea but wants to find someone younger. Gert is adamant that she will not move in with her children -- and doesnt think they would want her to anyway. Mollie, who came to Kings Point with her now-deceased husband after he had a heart attack, regrets that she ever left New York. The five people talk about how hard it is to foster deep friendships where they live, whether they could ever fall in love again and how people at Kings Point keep their illnesses to themselves.

People in Los Angeles can watch the short film through Thursday at the Laemmle NoHo7 as part of the International Documentary Assn.s DocuWeeks 2012 program.

I spoke with Gilman about the film, which is dedicated to her grandmother Ida Gilman. Heres some of the interview, edited down for length and clarity.

Why did you decide to make the film?

My grandmother lived [at Kings Point] for 30 years and I visited her from the time I was about 9. I When I was younger, I was really fascinated by the place -- it seemed like summer camp for old people.

[But over time things shifted:] I saw a lot of loneliness, and I saw a lot of people staying in and not going out as much. If you had your health, that kind of made you popular. And if you didnt, people stopped coming by. I would hear people at the pool sort of whispering, Oh, Ida -- shes going down.

All of a sudden, everyone was going to the doctor instead of going to the clubhouse, but people didnt want to hear the other person complain. I imagined there was a lot going on internally with the residents there, but they didnt have an opportunity to talk to each other about it.

Continue reading here:
Retirement resorts don't look so rosy in documentary film

The governments central personnel agency says that allowing federal employees to phase into retirement is one of its important goals and it will make the option available as soon as possible.

However, participation will be entirely voluntary for both employees and their employing agencies, and certain categories of workers will be excluded, the Office of Personnel Management added in a fact sheet it recently sent to agencies.

Under phased retirement, an agency will be able to offer employees who are retirement-eligible the choice of switching to part-time work. They would draw a partial salary and a partial annuity, both prorated according to the time worked.

Phased retirement had been proposed for years as helping employees interested in cutting back on their work schedules rather than retiring fully, while the government would continue to benefit from their expertise. The law envisions that phased retirees would spend a fifth of their working time mentoring younger employees.

The authority was enacted as a cost-saving part of an unrelated bill signed last month, but the option will not be available until OPM issues implementing rules. OPM has not released an expected start-up date.

Under the traditional law in effect until then, when federal retirees return to work for the government they continue to receive their full annuities, but their pay generally is reduced by an equal amount. Limited exceptions allow for full receipt of both.

An effective phased retirement plan has been a long-sought goal. However, under prior law, the problem was that an individual who was retirement-eligible but wished to continue employment on a part-time basis generally had little economic incentive to do so because an employees potential retirement benefits would often be equal to or greater than their salary would be for part-time employment, OPM said.

While the law authorizing phased retirement would allow retirees to work between one and four days a week on average, OPM told agencies that at the outset, at least, only half-time work will be allowed.

Phased retirement will be available only to those who meet standard retirement eligibility rules and who also had been working full-time for the three previous years. Employees who are subject to mandatory retirement will be excluded; most of them work in law enforcement, air traffic control and firefighting.

Phased retirees will be treated as employees for purposes of health and life insurance coverage and survivor benefits, OPM said. When they decide to retire fully, their annuity benefits will be paid in full, with increases reflecting their additional working time.

Continued here:
Plan would allow federal workers to phase into retirement

LONDON -- The last five years have been tough for those in retirement. Portfolio valuations have been hammered and annuity rates have plunged. There's no sign of things improving anytime soon, either, as the eurozone and the U.K. economy look set to muddle through at best for some years to come.

A great way of protecting yourself from the downturn, however, is by building your retirement fund with shares of large, well-run companies that should grow their earnings steadily over the coming decades. Over time, such investments ought to result in rising dividends and inflation-beating capital growth.

In this series, I'm tracking down the U.K. large caps that have the potential to beat the FTSE 100 (UKX) over the long term and support a lower-risk income-generating retirement fund (you can see the companies I've covered so far on this page).

Today, I'm going to take a look at SABMiller (LSE: SAB.L) , the South African brewing giant with a global footprint and ownership of brands including Peroni Nastro Azzurro, Grolsch, and Miller Genuine Draft.

I'll have a lagerSABMiller's main product is lager, the market for which is expanding rapidly, thanks to the world's emerging economies. Over the last 10 years, SABMiller has beaten the FTSE 100 hands-down:

Total Return

2007

2008

2009

2010

Here is the original post:
Is SABMiller the Ultimate Retirement Share?