William Bernstein, investment adviser and author, says the worst mistake is not knowing when to take money off the table.

NEW YORK (Money Magazine) -- William Bernstein has a gift not only for grasping the complex but for helping the rest of us get it too.

He spent the first chunk of his career as a neurologist practicing on the coast of Oregon but cut back on his work hours in 1990. A few years later he focused on a new fascination: investing. He launched an online journal (a sort of proto-blog) called efficientfrontier.com and wrote "The Intelligent Asset Allocator," the first of several books. (He has also written for MONEY.)

Now he's an investment adviser for a handful of high-net-worth clients. Bernstein's writing often explores academic financial theory, but he manages to turn it into practical, plain-English advice.

His latest obsession, resulting in the short e-book "The Ages of the Investor," is what economists call the life-cycle theory, which dictates that your asset allocation should be tied to your earnings power throughout your career.

Bernstein, 64, spoke with senior editor George Mannes; their conversation was edited.

There's a debate going on now among economists about how much exposure people should have to stocks. What made you weigh in?

It's almost like a political issue. There's a "right wing" of very smart, authoritative people who think that savers and retirees should be investing conservatively because stocks are so risky. And then there's a "left wing" of equally smart and authoritative people who believe the opposite.

I was trying to reconcile the two views. Plus, I wanted to deal with what happened in the 2008 financial crisis, which changed how people, myself included, think about risk.

How so?

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The worst retirement investing mistake

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 faron this page).

Today, I'm going to take a look atBG Group (LSE: BG.L) , the highly successful gas exploration and production company whose share price has risen by more than 400% over the last 10 years.

Gas futuresBG Group has thoroughly outperformed the FTSE 100 over the last 10 years, thanks to stonking outright growth that's been consistently reflected in its share price and dividends:

Total Return

2007

2008

2009

2010

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Is BG Group the Ultimate Retirement Share?

SPRINGFIELD, Mass., Sept.4, 2012 /PRNewswire/ -- Massachusetts Mutual Life Insurance Company (MassMutual) announced today it has entered into a definitive agreement with The Hartford to purchase its Retirement Plans business, a prominent small to mid-sized retirement plan provider. This transaction will significantly increase the size of MassMutual's retirement business and strengthen its position as a leading retirement plan provider.

The purchase price is $400 million, subject to adjustment at closing. The transaction, which is subject to regulatory and other approvals, is expected to close by the end of 2012.

"This acquisition represents an important step for MassMutual and underscores our long-standing commitment to the retirement market. Following the closing of the transaction, we look forward to combining the best of our two organizations to offer enhanced capabilities and greater overall value across a broader retirement market," said Roger Crandall, Chairman, President and CEO, MassMutual. "Our Retirement Services Division has experienced record growth in recent years and is an important contributor to MassMutual's overall profitability and success. This transaction enables us to accelerate growth into new sectors, add complementary distribution capabilities, and nearly double the number of retirement plan participants we serve."

Under the leadership of Elaine Sarsynski, Executive Vice President and head of MassMutual's Retirement Services Division and Chairman and CEO of MassMutual International LLC, a plan will be implemented to ensure an orderly integration of this acquisition over the coming year.

"Today's announcement recognizes the strength of The Hartford's Retirement Plans business and the innovation, dedication and talent of the team," said The Hartford's Chairman, President and CEO Liam E. McGee. "The agreement marks the second of three planned business sales as we continue to make good progress executing on our strategy. With The Hartford's sharper focus on its historical strength in insurance underwriting, along with efforts to improve expense efficiencies, increase capital generation and reduce market risks, we are on the right path to deliver greater shareholder value."

MassMutual's Retirement Services Division offers a full range of products and services for corporate, union, nonprofit and governmental employers' defined benefit, defined contribution and nonqualified deferred compensation plans. With a strong focus on the mid-size market, it provides retirement plan services to more than 7,600 plans, serves more than 1.6 million participants, and has more than $66.2 billion in assets under management (as of June 30, 2012).

After the closing, the strong distribution network of The Hartford's Retirement Plans business among small to mid-size plans will complement and strengthen MassMutual's excellent position with mid-size to larger corporate plans. Additionally, The Hartford's Retirement Plans' tax exempt business, including its position as a top provider of governmental plans, will strengthen MassMutual's foothold in this segment. The Hartford's Retirement Plans business, which also provides administrative services for defined benefit programs and has $54.9 billion in assets under management (as of June 30, 2012), provides retirement plan services to more than 33,000 plans and serves more than 1.5 million participants.

Once the transaction is completed, the combined retirement businesses are projected to have approximately $120 billion in assets under management and 3 million participants.

"Importantly, this is a win-win for both MassMutual and The Hartford's Retirement Plans business, their clients, distribution partners and employees," said Ms. Sarsynski. "The addition of this business will enable us to broaden and deepen our product offerings and relationships with valued distribution partners. We look forward to welcoming the talented team of professionals at The Hartford's Retirement Plans business to MassMutual."

"In addition, clients from The Hartford's Retirement Plans business will benefit from MassMutual's industry leadership in many areas, including our participant communication and education programs, comprehensive tools that help plan sponsors and plan participants measure retirement readiness, and award winning customer service," Ms. Sarsynski continued. "Together, we will create enhanced value for our advisors and plan sponsors, and work collectively toward our goal of helping our participants retire on their own terms."

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MassMutual To Acquire The Hartford's Retirement Plans Business

HARTFORD, Conn.--(BUSINESS WIRE)--

The Hartford today announced that it has signed a definitive agreement to sell its Retirement Plans business to Massachusetts Mutual Life Insurance Company (MassMutual) for a cash ceding commission of $400 million, subject to adjustment at closing. The sale, which is structured as a reinsurance transaction, is expected to close by the end of 2012, subject to regulatory approvals and satisfying other customary closing conditions.

Todays announcement recognizes the strength of The Hartfords Retirement Plans business and the innovation, dedication and talent of the team, said The Hartfords Chairman, President and CEO Liam E. McGee. The agreement marks the second of three planned business sales as we continue to make good progress executing on our strategy. With The Hartfords sharper focus on its historical strength in insurance underwriting, along with efforts to improve expense efficiencies, increase capital generation and reduce market risks, we are on the right path to deliver greater shareholder value.

The Hartford expects the transaction to have no material impact on its GAAP financial results and to benefit net statutory capital by approximately $600 million, including the ceding commission and a reduction in required risk-based capital, on closing. The estimated GAAP and statutory financial impacts are based on June 30, 2012 values and are subject to change based on final adjustments, market conditions and financial results through closing date. These impacts are expected to be recognized in the quarter in which the transaction closes.

The Hartfords Retirement Plans business is primarily a defined contribution business with $54.9 billion in assets under management as of June 30, 2012. The business serves more than 33,000 plans with more than 1.5 million participants, and has a strong presence in thesmall to mid-sized corporate401(k) and tax-exempt markets. It also provides administrative services for defined-benefit programs. As a result of the agreement, The Hartfords Retirement Plans employees will become part of MassMutuals Retirement Services Division.

This acquisition represents an important step for MassMutual and underscores our long-standing commitment to the retirement market.Following the closing of the transaction, we look forward to combining the best of our two organizations to offer enhanced capabilities and greater overall value across a broader retirement market, said Roger Crandall, Chairman, President and CEO, MassMutual.Our Retirement Services Division has experienced record growth in recent years and is an important contributor to MassMutuals overall profitability and success. This transaction enables us to accelerate growth into new sectors, add complementary distribution capabilities, and nearly double the number of retirement plan participants we serve.

As part of the agreement, The Hartford will continue to sell new retirement plans during a transition period, and MassMutual will assume all expenses and risk for these sales through a reinsurance agreement. Between now and the close of the transaction, there are no planned changes with respect to the day-to-day interactions or processes between The Hartford and its Retirement Plans distribution partners, plan sponsors and customers.

The Hartford's financial advisors for the divestiture are Greenhill & Co. and Goldman, Sachs & Co., and the companys legal advisors are Sidley Austin LLP.

About The Hartford

The Hartford Financial Services Group Inc. (HIG) is a leading provider of insurance and wealth management services for millions of consumers and businesses worldwide. The Hartford is consistently recognized for its superior service, its sustainability efforts and as one of the world's most ethical companies. More information on the company and its financial performance is available at http://www.thehartford.com.

Excerpt from:
The Hartford To Sell Retirement Plans Business To MassMutual

KUALA LUMPUR, -- Prime Minister Datuk Seri Najib Tun Razak today announced that Tenaga Nasional Berhad (TNB) is the first government-linked company to raise the retirement age from 56 to 60.

He said this was in accordance with the implementation of the Minimum Retirement Age Act 2012 passed by Parliament recently.

The prime minister also announced more good news for the TNB employees. He said the TNB board of directors and management had agreed to raise the employer's rate of contribution to the Employees Provident Fund (EPF) for the 56-60 age period.

He also said that new employees of TNB would contribute to the Social Security Organisation (Socso) beginning Sept 1 this year.

Najib made the announcements when addressing an assembly of TNB employees at the TNB Sports Complex, here. The event was also followed live over a video telecast by almost 30,000 TNB employees throughout peninsular Malaysia and Sabah.

Najib said he hoped that all TNB employees would garner better benefits and be more motivated to discharge their duties.

"And, what was expressed by your representatives will be your firm commitment to work hard.

"As such, TNB will excel and in 60 years from now, it will achieve greater excellence," he said.

Najib said the challenge for TNB now was to fulfil the Key Performance Indicator (KPI) pertaining to supply of adequate electricity and energy at a high rate of reliability compared to the early stages where it had to supply power to small towns and the rural areas.

"When we talk of quality, it goes with reliability. This does not apply just for domestic consumers but for industrial users such as in the sophisticated electrical and electronic fields where a slight disruption can result in huge losses," he said.

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Retirement age at 60 for TNB employees - Najib

Michael Phelps recruits fellow Olympians, such as Nathan Adrian, behind Phelps, for a Las Vegas Labor Day weekend celebration marking his retirement from competitive swimming. (Erik Kabik / September 2, 2012)

September 3, 2012, 5:06 p.m.

We're guessing any retirement party you've been to didn't include bikini-clad waitresses, chilled vodka shots and world class DJs. But then again, Michael Phelps isn't anywhere near retirement age.

But retire the 27-year-old swimmer did. Following a blaze of glory at the recent London Olympic Games that saw him named the most-decorated Olympian in history, Phelps celebrated the end of his competitive career in Las Vegas.

A Labor Day weekend bash awaited Phelps and athlete pals such as Allison Schmitt and Nathan Adrian, kicking off Friday at the Wynn Encore's Surrender nightclub.

"This is my first night of retirement!" Phelps told the screaming room, taking Grey Goose shots as Afrojack worked the turntables.

The following afternoon at the Encore Beach Club Phelps rolled shirtless in shades with Schmitt and Adrian but not girlfriend Megan Rossee, accepting kudos from party-goers and a cake decorated with gold medals from some scantily clad servers.

David Guetta, he of such hits as "Titanium" and Usher's "Without You," invited Phelps into the DJ booth, prompting cheers of "USA!" from the crowd.

Hotel owner Steve Wynn and wife Andrea Hissom joined the pair to take in the moment -- likely an exciting one for everyone present. After all, this is the kind of Vegas occasion you want documented. Others can be a royal pain.

ALSO:

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Michael Phelps celebrates retirement with Vegas rager

Before Mitt Romney retired from Bain Capital, the enormously profitable investment firm he founded, he made sure to lock in his gains, both realized and expected, for years to come.

He did so, in part, the way millions of other Americans do with the tax benefits of an individual retirement account. But he was able to turbocharge the impact of those advantages and other tax breaks in his severance package from Bain in a way that few but the countrys super-rich can ever hope to do.

Graphic

Read the full text of Mitt Romney's tax documents.

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THE FIX | In Charlotte this week, Democrats hope to cast election as choice between competing visions.

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Democrats hope it will follow Denvers example and help Obama in a battleground state.

Chris Cillizza

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Mitt Romney exited Bain Capital with rare tax benefits in retirement

(MoneyWatch) If you're a boomer approaching retirement who's been keeping abreast of retirement planning issues, you're probably already aware of several common retirement planning mistakes that many people make, such as starting Social Security too early, drawing down your retirement savings too rapidly, or panicking and selling your stock investments when the market tanks. If these sound familiar to you, pat yourself on the back since you've been keeping an eye on your retirement money ball.

But planning for a retirement and rest of life that could easily last 20 years or more is an ambitious undertaking, and you'll need to keep your eye on many different balls, not just the money ball. So let's take a look at some common retirement planning mistakes that don't directly involve your money.

Mistake #1: Maintaining the status quo at work Many boomers are beginning to accept that they'll need to postpone their retirement because they don't have sufficient financial resources available to fully retire in their early to mid 60s. And most likely they're right: The majority of boomers don't have sufficient 401(k) balances or pension income to retire any time soon.

But that doesn't mean that you should simply suck it up and continue slogging away at the same old job for a few more years. One of the biggest threats to retirement for people currently in their 50s and 60s is the loss of their job. As a result, you should be doing everything in your power to secure that stream of wage income for many more years to come. Moves you can make include:

- Taking on new responsibilities - Learning new skills - Signing up for new training courses - Obtaining new credentials or updating your current credentials, and/or - Nurturing your network of both internal and external business contacts.

And don't overlook other actions you can take that can make your job and your life more enjoyable, thereby postponing boredom or frustration that can diminish your job performance. This can include:

- Easing your commute by moving closer to work, taking public transportation, or car-pooling - Taking all your vacation time (and maybe a little more), either all at once or little by little so you can enjoy time off from your job, or - Pursuing activities and hobbies you've always wanted to do in your spare time.

Another strategy to consider is working part time while you delay full retirement. It may be that all you need to do is to work enough to cover your living expenses, thereby allowing the continued growth of all your other retirement resources, such as Social Security, retirement savings, and a pension if you have one. By working just part time, you'll still have more time for yourself -- compared with working 40-plus hours per week -- so you'll be able to realize some of the advantages of being retired. Some advisors call this "practice retirement," and it's an idea that deserves your consideration.

Mistake #2: Complacency with living expenses According to a recent survey by the Society of Actuaries, reducing your living expenses is the number-one financial coping strategy named by retirees, yet many people wait until their backs are to the wall before taking a hard look at their living expenses. Instead of waiting until you have no choice, now is the time to consider downsizing your home, managing with just one car, doing all you can to cut back on your monthly utility bills, and postponing major, discretionary purchases, like a new flat screen TV.

Now is also the time to consider whether you should move to a less expensive area of the country or share housing to dramatically cut your living expenses. Now is also the time to consider what is "just enough" to meet your needs and make you happy.

Read the original here:
4 retirement planning mistakes you may be making

Bobby and Sue have 10 years until their goal retirement age, so they feel they need guidance. Both 52, the couple has concerns about their childs college tuition costs, which will start one year from now. They also plan some major upgrades to their home worth about $25,000, but they dont want to go into debt.

"For retirement, we would like to sell our house and move to another part of the country," Bobby says. "We would like to be comfortable, periodically travel and be as debt-free as possible."

The couple, whose names have been changed, set aside $111,100 in 401(k) plans, $10,300 in IRAs, $6,500 in bonds, $2,700 in savings and $200 in checking. They also have $34,000 earmarked for college tuition, and Bobby expects an annual pension of $64,650 at age 62.

The Star-Ledger asked Jody DAgostini, a certified financial planner with AXA Advisors/RICH Planning Group in Morristown, to help the couple plan for their future.

"Bobby and Sue are wise to begin to see if their retirement can take shape for them," she says. "One of the obstacles in knowing if you have enough to retire is first to visualize what you plan to be doing in retirement, and where you plan to be doing it."

Then, you can attach a price tag.

Bobby and Sue have several goals, including home improvements, which they have been putting off, and a college education for their child. Theyd like to retire in 10 years when theyre both 62.

First, retirement.

DAgostini says retirement often takes on three stages.

First is the "go-go" stage, where retirees often enjoy good health and want to maximize their days by traveling and engaging in new hobbies. "This can often be costly, resulting in expenses that exceed their pre-retirement budget by as much as 105 percent," she says.

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Get With the Plan: Sizing up retirement costs when there's tuition to consider

Janice Durflinger, 76, is still running computer software programs for a Lincoln, Neb., bank. She worries that a higher retirement age would be tough on people with physically demanding jobs. (Nati Harnik, The Associated Press)

KANSAS CITY, Mo. Just how much the Great Recession reshaped what many baby boomers thought retirement would look like is becoming clearer: More than ever, they now expect to retire later or work when they're "retired."

In 1991, just one in 10 workers told the Employee Benefit Research Institute that they planned to wait to retire until they were older than 65. By 2007, three in 10 said that.

This year? More than four in 10.

Boomers cruising toward a traditional retirement suffered a financial comeuppance in the prolonged economic slump that began in late 2007. The downturn sapped jobs, stock and housing values, and interest on savings.

Many were also caught in the shift from defined-benefit pension plans to 401(k) plans that required workers to contribute toward their own retirement savings. Some didn't, a choice that will leave them short financially.

Small wonder that, according to the Pew Research Center, boomers are the gloomiest of all age groups about the health and future of their finances. Boomers were more likely than other age groups to tell Pew researchers that they lost money on investments since the recession hit. Nearly six in 10 said their household finances worsened.

Finally, employment-based health insurance for many retirees has been withering away, which is causing older workers to cling to paychecks.

Overall, the stage is set for a new normal: working in retirement.

That suits William Brockman just fine. The 65-year-old working retiree began a job this year at a child-care center in Overland Park, Kan., where he delightedly calls himself "a shepherd to flocks of children" four days a week.

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Baby boomers find retirement age now a moving target