Mutualfundreform.com

With over $ 270 billion in assets, target-date funds (TDFs) continue to be the default provision favorite for millions of future retirees as part of the Pension Protection Act of 2006.  But despite their wild popularity, TDFs have yet to overcome what many consider some fundamental design flaws that make them the less-than-perfect default investment choice for millions of investors. One of these major shortcomings occurs when a person actually…

By most measures, the 2008 recession ranks as the worst since the Great Depression.  Not only has it eroded the per capita incomes of entire nations (see  Mutualfundreform.com story posted Jan. 27, 2012)), but it has also taken its toll on future retirees due to reduced Social Security contributions and pension benefits, accompanied by lost incomes.  The combined effect translates into less income and reduced benefits for millions of future retirees.

Today’s news that U.S. economic growth may not exceed 2% this year had an immediate effect on the stock market.  But how long does it take a nation to recover its GDP in a slow growth period? The U.S. economy grew at a less-than-forecast 2.8% in the fourth quarter 2011.  For the full year 2011, the economy expanded 1.7% and consumer spending grew 2.2%, according to U.S. Commerce Department data….

News that the Federal Reserve is considering a new $1 trillion round of quantitative easing is being accompanied by new data showing the ratio between home equity and disposal income is at a historic low.  This unprecedented ratio is all important in a credit society since it demonstrates that expansion possibilities are limited to non-existent if American consumers cannot borrow.

At one time, Europe was considered the trendsetter in fashion, design and political thought.  Now, a new study by Greenwich Research shows that Europe is leading the way in fee reductions and introducing new investment products centered around ETFs and specialized funds. The reason for the re-positioning is due to Europe’s new economic realities. The 2011 European Intermediary Distribution study found that in order to remain competitive and provide a…

Just as momentum is building inside Congress to enact new rules prohibiting insider trading among elected officials, an opposing Objectivist view (advocated by adherents of Ayn Rand) is being aired which contends that insider trading should be legalized. The rationale? 

The debate over the benefits of active investment management versus passive investing remains a favorite topic of investors.   Whenever new data emerges to buttress the long-established argument that index funds, which use passive investing, outperform on all measures compared to active-funds, the strategy gains more attention. 

April 2012 will be a traumatic time for many 401(k) plans. That’s when 401(k) plans will be forced to disclose the fees they pay to their plan administrators.  For many plans, this will not be easy.  Like a low tide, it will show which plans are well managed and which have been wasting their money on unnecessary services that increased plan costs and wasted corporate funds.

Large banks which set one of the institutional investing world’s most important interest rate-setting benchmarks–LIBOR–are being accused of price fixing by some of the largest regulators in the world. In a series of lawsuits filed in 2011, plaintiffs charge that dating back to the start of the current financial crisis in 2008, 19 international banks comprising the panel which determines the daily LIBOR (London Interbank Offering Rate) have manipulated market…

Average Annual Total Returns (as of 10-31-2011) YTD Returns at NAV     1 Year 3 Years 5 Years 10 Years 15 Years     Standard & Poor’s 500 Composite Index N/A 8.07% 11.41% 0.25% 3.69% 5.77%     DJIA N/A 10.34% 11.80% 2.53% 5.39% 7.04%     NASDAQ N/A 7.06% 15.97% 2.55% 4.73% 5.39%     MSCI All Country World Index ex- USA N/A −4.25% 13.43% 0.08% 8.05% 5.39%  …