| Financial Shocks Throw a Wrench Into Americans’ Retirement Savings | In a new report, “Financial Shocks Put Retirement Security at Risk,” The Pew Charitable Trusts examined whether financial setbacks cause people to tap into their retirement savings. Based on a survey of 5,661 households, Pew found that, in the past year, 13% of people who had experienced a financial shock drew from their retirement savings.Read more > | African-Americans Want More Financial Education From Their Employers | “Across the board, African-Americans are more likely to say they are unprepared for retirement and feel less financially secure, but [they] are more open to education and financial guidance,” says Evan Taylor, head of MassMutual’s African American Markets. His observations derive from a study by MassMutual that surveyed 492 African-Americans with an annual household income between $35,000 and $150,000. Forty-five percent of African-Americans who bring home $75,000 or more say they feel less than financially secure compared with just 28% of other Americans in the same income category.Read more > | | Sponsored message from Vanguard | Target-Date Funds: Built to Weather Volatility Uncertainty is often the cause of knee-jerk reactions by investors. Many DC plan sponsors select target-date funds (TDFs) as their plan’s qualified default investment alternative to curb emotional investing.Read more > | | Economic Events | Sales of new single-family houses in September were at a seasonally adjusted annual rate of 667,000, according to estimates released jointly by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 18.9% above the revised August rate of 561,000 and is 17.0% above the September 2016 estimate of 570,000. New orders for manufactured durable goods in September increased $5.1 billion or 2.2% to $238.7 billion, the U.S. Census Bureau announced. This increase, preceded by three increases in the last four months, followed a 2.0% August increase. Excluding transportation, new orders increased 0.7%. Excluding defense, new orders increased 2.0%. Transportation equipment, also up three of the last four months, led the increase, up $4.0 billion or 5.1% to $81.2 billion. | | Market Mirror | Wednesday, the Dow closed 112.30 points (0.48%) lower at 23,329.46, the NASDAQ lost 34.54 points (0.52%) to finish at 6,563.89, and the S&P 500 decreased 11.98 points (0.47%) to 2,557.15. The Russell 2000 was down 6.94 points (0.46%) at 1,493.47, and the Wilshire 5000 fell 137.95 points (0.52%) to 26,553.88. The price of the 10-year Treasury note was down 5/32, increasing its yield to 2.436%. The price of the 30-year Treasury bond decreased 10/32, bringing its yield up to 2.950%. | | Compliance | Xerox Wins Dismissal of Suit Over Financial Engines Offering | A federal court judge has dismissed a case challenging a fee arrangement between advice provider Financial Engines and recordkeeper Xerox HR Solutions. Akin to a finding in a similar lawsuit against Fidelity Investments, the judge in the Xerox case found that neither Xerox nor Financial Engines were acting in a fiduciary capacity relating to the fee arrangement. The plaintiffs, participants in three Ford Motor Company retirement plans, claim that Xerox is a fiduciary because it had discretion over the amount of its compensation. Specifically, they allege that because the agreement between Xerox and Ford did not curtail Xerox’s ability to seek compensation from a party like Financial Engines (FE), Xerox in effect controlled the terms of its own compensation by seeking additional money from FE.Read more > | | Small Talk | ON THIS DATE: In 1774, the First Continental Congress of the U.S. adjourned in Philadelphia. In 1825, the Erie Canal opened in upstate New York. The 363-mile canal connected Lake Erie and the Hudson River at a cost of $7,602,000. In 1858, H.E. Smith patented the rotary-motion washing machine. In 1881, the “Gunfight at the OK Corral” took place in Tombstone, Arizona. The fight was between Wyatt Earp with his two brothers and Doc Holiday and the Ike Clanton Gang. In 1944, during World War II, the Battle of Leyte Gulf ended. The battle was won by American forces and brought the end of the Pacific phase of World War II into sight. In 1949, U.S. President Harry Truman raised the minimum wage from 40 to 75 cents an hour. In 1958, Pan American Airways flew its first Boeing 707 jetliner from New York City to Paris. In 1962, the Soviet Union made an offer to end the Cuban Missile Crisis by taking their missile bases out of Cuba if the U.S. agreed to not invade Cuba and to remove Jupiter missiles in Turkey. In 1970, “Doonesbury,” the comic strip by Gary Trudeau, premiered in 28 newspapers across the U.S. In 1984, “Baby Fae” was given the heart of baboon after being born with a severe heart defect. She lived for 21 days with the animal heart. In 1990, Wayne Gretzky became the first NHL player to reach 2,000 points. | SURVEY SAYS: Though you wouldn’t think of it with all the Christmas decorations already on store shelves, Halloween is coming up soon. This week, I’d like to know, do you have plans to dress up in costume for Halloween this year? Please share the most creative costume you’ve seen or come up with. You may respond to the survey by 6 p.m. Pacific time today.Read more > | Share the news with a friend! Pass the NewsDash along and tell your friends/associates they can sign up for their own copy.Read more > |
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