Inflation Is The Silent Killer Of Investing

Inflation is the carbon monoxide of saving and investment, a silent killer that worries Americans, yet most are not including inflation in their plans.

According to a recent study by Minneapolis-based Allianz Life, inflation ranks as the top economic concerns, but nearly two-thirds of respondents in a survey of U.S. adults, 64 percent, said that they do not have a financial plan addressing inflation.

Among the minority of respondents who are planning to address inflation, more than half intend to simply adopt a more frugal lifestyle after retirement.

Four-in-10 respondents were concerned that they might not be able to afford the lifestyle they want in retirement due to inflation.

from FA News–americans-misunderstand–neglect-inflation-34161.html

Americans’ Debt Level Notches Record High

Americans’ debt level notched another record high in the second quarter, after having earlier in the year surpassed its pre-crisis peak, on the back of modest rises in mortgage, auto and credit card debt, where delinquencies jumped.

Total U.S. household debt was $12.84 trillion in the three months to June, up $552 billion from a year ago, according to a Federal Reserve Bank of New York report published on Tuesday.

from FA News–debt-level-notches-record-high-34160.html

Workers Put Less 401(k) Assets In Their Employers’ Stocks

Record low numbers of 401(k) participants are invested in their company’s stock.

According to “401(k) Plan Asset Allocation, Account Balances and Loan Activity in 2015,” a recently released analysis from the Employee Benefit Research Institute (EBRI) and the Investment Company Institute (ICI), more 401(k) plan participants held equities in their accounts at the end of 2015 than before the 2008 global financial crisis, but fewer of those equity assets were company stock.

Less than 7 percent of the assets in the EBRI/ICI 401(k) database were invested in company stock at the end of 2015. Ownership of company stock in 401(k) plans has declined 63 percent since 1999, when it accounted for 19 percent of plan assets.

Two-thirds of 401(k) assets are held in equity securities through equity funds, the equity portion of balanced funds and company stock, according to the report.

from FA News–but-company-stock-ownership-plummets-34150.html