Brightbridge Wealth Management Online Magazine

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Even though lawmakers may shy away from passing major laws in an election year, 2012 brings changes to 401(k) s and otherretirement plans.

From charge disclosure to lifetime-income options and more, your 401(k) or other workplace plan likely will look different by this time next year.

Still, experts say that there won’t be many legal or regulatory changes in 2012 considering the fact that it’s an election year. “Given the monetary situation, there is certain to be a quite long political debate over the question of entitlement reform, which includes Social Security and Medicare,” said Stephen Utkus, a principal with the Vanguard Center for Retirement Research.

Moreover, “No one really envisions major changes in 2012, given that it is an election year,” she added.

Charge Disclosure

The executive director of the Defined Contribution Institutional InvestmentAssociation, Lew Minsky said that the year 2012 should generally be about the advanced disclosure. For instance, retirement-plan sponsors will have to discloseto 401(k) participants the fees and expenses affiliated with the funds in theirretirement plan. These include new annual notices, quarterlystatements,enrollment workbooks and education about fees. “The materials are being ordered under the new regulations which are intended to make it easier forparticipants to understand their retirement-plan investment choices by giving an information about such things as past performance, benchmarks and fees in acomparative chart,” said Larry Goldbrum, general counsel at the SPARK Institute.

Intentionally, such disclosure may not change the participant’s behavior, said Michael Falcon, the managing director and head of the retirement in the U.S and Canada for J.P Morgan Asset Management as well. Finding out that a fund costs 4 basis point is interesting math, the most important way to change outcomes is to change how much you save in which is also the most important element of a retirement plan, and not the fees.

Lifetime income options and illustrations

There are those who hope, or expect, that regulators and lawmakers will make an improvement on other initiatives.

The Manager of legislative and regulatory strategy for T. Rowe Price Retirement Plan Services Howard Heller expects the U. S Labor Department to issue guidance in 2012 on providing lifetime income illustrations on participant benefit statements. Theillustrations would show the expected monthly benefit at retirement age given their current account balance and, perhaps; givecertain assumptions regarding future contributions and earnings of their participants.

Schaus also hopes to see the Lifetime Income Disclosure Act or LIDA, which was proposed in 2010, and become law. In addition, she also hopes the U.S Treasury Department to issue guidance on deferred annuities within the defined-contribution plans, specifically, pertaining to the required minimum distributions.

Brightbridge Wealth Management Headlines: Economic Disturbance Outlook for 2012

http://brightbridgewealthmanagement-facts.com/2012/01/brightbridge-wealth-management-headlines-economic-disturbance-outlook-for-2012/



American consumers are spending more, the housing market is improving, and employers are reducing fewer workers. But theunresolved debt crisis in Europe, the downturn in China and U.S. spending cuts present a serious challenge for policy makers as2012 starts out. U.S. unemployment is at its lowest level in more than two and a half years, and consumer confidence isincreasing. But there are dark clouds ahead as the New Year starts out. As noted by the Brightbridge Wealth Management, China, the world’s fastest growingeconomy, is slowing down, and Europe’s debt crisis shows few signs of easing.



The large number of unemployment in the United States, increasing debt and Congress’ incapacity to do anything about it weremajor stories in 2011.  But some bright areas are appearing to be the year comes to a close, According to George L. Perry, asenior fellow for economic studies at the Brookings Institution.”One was the export sector which grew really very well. Anotherarea was construction outside of home building. Business construction was picking up and construction in particular areas likecommercial. “We export much to Europe,” Perry points out. “And if Europe falls into another recession, that export growth is going to end. And which will have an effect on jobs in the U.S. and lead to the U.S. to move towards recession.”Increasing inflation and the downturn in Chinese manufacturing have already curbed demand for some commodities.  But the downturn is due in part toBeijing’s efforts to avert its economy from overheating.



World Bank President Robert Zoellick is encouraged by the ongoing reforms in China aimed towards reducing the country’sreliance on exports, but he warned U.S. lawmakers against further delays in dealing with the nation’s increasing debt, now close to$15 trillion.

According to the Brightbridge Wealth Management,”The downgrade of America from triple A didn’t have an effect on the finances today, but it may be one ofthose events in which people look back on 10 years from now and say, ‘Did they get the warning? Did they pay attention or didthey continue to do what they were doing?’”



Unless leaders are willing to make the difficult decisions needed to stabilize the global economy, Zoellick and many leadingeconomists say problems in Europe, the U.S. and China could coalesce into a ”perfect storm” in 2012 that could rival the financial crisis of 2008.

,Brightbridge Wealth Management Stock Market Prices, Asset management and Mutual Funds

http://brightbridgewealthmanagement-facts.com/



American consumers are spending more, the housing market is improving, and employers are reducing fewer workers. But theunresolved debt crisis in Europe, the downturn in China and U.S. spending cuts present a serious challenge for policy makers as2012 starts out. U.S. unemployment is at its lowest level in more than two and a half years, and consumer confidence isincreasing. But there are dark clouds ahead as the New Year starts out. As noted by the Brightbridge Wealth Management, China, the world’s fastest growingeconomy, is slowing down, and Europe’s debt crisis shows few signs of easing.



The large number of unemployment in the United States, increasing debt and Congress’ incapacity to do anything about it weremajor stories in 2011.  But some bright areas are appearing to be the year comes to a close, According to George L. Perry, asenior fellow for economic studies at the Brookings Institution.”One was the export sector which grew really very well. Anotherarea was construction outside of home building. Business construction was picking up and construction in particular areas likecommercial. “We export much to Europe,” Perry points out. “And if Europe falls into another recession, that export growth is going to end. And which will have an effect on jobs in the U.S. and lead to the U.S. to move towards recession.”Increasing inflation and the downturn in Chinese manufacturing have already curbed demand for some commodities.  But the downturn is due in part toBeijing’s efforts to avert its economy from overheating.



World Bank President Robert Zoellick is encouraged by the ongoing reforms in China aimed towards reducing the country’sreliance on exports, but he warned U.S. lawmakers against further delays in dealing with the nation’s increasing debt, now close to$15 trillion.

According to the Brightbridge Wealth Management,”The downgrade of America from triple A didn’t have an effect on the finances today, but it may be one ofthose events in which people look back on 10 years from now and say, ‘Did they get the warning? Did they pay attention or didthey continue to do what they were doing?’”



Unless leaders are willing to make the difficult decisions needed to stabilize the global economy, Zoellick and many leadingeconomists say problems in Europe, the U.S. and China could coalesce into a ”perfect storm” in 2012 that could rival the financial crisis of 2008.