Deals & People May 20, 2013

Former Senator Picked to Head SIFMA

Judd A. Gregg, a former three-term senator, was appointed chief executive officer of the Securities Industry and Financial Markets Association (SIFMA).
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During a media call Kenneth E. Bentsen Jr., who was named president of the association, told PLANADVISER that a uniform fiduciary standard of care, which “SIFMA has long been in favor of,” will be SIFMA’s new CEO’s first priority, and “the No. 1 place we are doing a lot of work.”

Another one of Gregg’s projects will be helping mend the image of Wall Street. “Too big to fail” must end, Gregg said. “At the center of this financial system is the membership of SIFMA. Our members provide the resources and expertise that make the economic engine of America work and create a more prosperous life for Americans,” Gregg said, describing Wall Street as a “huge positive force” for creating jobs.

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Calling the Securities and Exchange Commission (SEC) “a primary and critical regulator, and an extremely effective regulator,” Gregg said the commission’s work on initiatives from the Dodd-Frank Act require mulling before rulemaking can take place. “They are very philosophical and academic ideas, very difficult,” Gregg said about the Dodd-Frank reforms. “Organizations like the SEC have been reasonably deliberate. We don’t want to rush into regulatory ideas,” Gregg said.

Gregg was the ranking Republican member on the Appropriations; Banking, Housing and Urban Affairs; and Health, Education, Labor and Pensions Committees. Before joining the Senate, he served two terms as governor of New Hampshire and four terms as a member of the House of Representatives. Gregg currently serves as a co-chair of the bipartisan Campaign to Fix the Debt, and he served on the National Commission on Fiscal Responsibility.

“Judd’s experience as both a governor and legislator will be of tremendous value to SIFMA in bridging the gap between the complexities of the financial markets and the positive impact our markets have on every community across America,” said Chet Helck, SIFMA chair and CEO of the Global Private Client Group at Raymond James Financial. 

Bentsen has served as a leading industry voice  and as executive vice president of public policy and advocacy since 2009, overseeing SIFMA’s legal, legislative and regulatory affairs.  Before joining SIFMA, Bentsen was president of the Equipment Leasing and Finance Association.  From 1995 to 2003, he served as a member of the House of Representatives from Texas, where he sat on the House Financial Services Committee (and its predecessor House Banking and Financial Services Committee), and separately on the House Budget Committee. Before his service in Congress, Bentsen was an investment banker at a Wall Street firm and a large regional firm, where he specialized in municipal and mortgage finance.

Data & Research May 20, 2013

Who Worries More, Men or Women?

Retirement savings, health issues and their children’s finances are concerns for women; while men worry about debt, both household and the national level.
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A survey from Spectrem Group compared the relative confidence in retirement readiness of male and female plan participants, and asked which gender is more likely to consider themselves better off financially from the previous year.

The survey polled 1,456 affluent plan participants and found that there are few retirement readiness issues on which both groups feel equally secure.

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About half of both men and women say they are better off now than one year ago, while more than two-thirds of each group says that maintaining their current financial position is a primary concern. In addition, fewer than half of each is confident they will have sufficient income to live comfortably in retirement. And that’s about it.

When asked about future prospects, men are more likely than women to say they expect to be better off financially one year from now. They also express greater concern with their level of household debt. Women are more concerned about not saving enough for retirement, health issues and the financial situation of their children.

When surveyed about national issues, men and women express similar concerns about the political environment that is perceived to be an obstacle to the White House and lawmakers working together to fix the economy. Women retirement plan participants are more concerned than men about a prolonged economic downturn, the potential for higher taxes, inflation and an increase in interest rates. Only the level of the national debt causes men to express a higher level of concern than women. 

Men and Women Invest Differently

Does this mean that men are less involved, or that women tend to be worriers? How does it affect their approach to investing their retirement plan money?

Men see themselves as considerably more knowledgeable in investing than women, the survey found. Overall, 72% of men said they are very or fairly knowledgeable about investments, compared with 44% of women. Men were also more likely than women to say they enjoy investing, that they want to be involved in the day-to-day management of their investments and are more willing to take significant risk with a portion of their investments. 

Women displayed a more conservative risk tolerance and were more likely to say they want a guaranteed rate of return on investments. 

The relative importance of investment selection factors among men and women were similar but different issues were emphasized. Each ranked the level of risk associated with an investment as the most important factor. Men ranked diversification second, while women said the reputation of the company where the investment is made was more important than diversification. The tax implications of the investment and social responsibility issues were also more important to women. 

Overall, men appeared to come at investment decisions with more confidence (or blind optimism) while women appeared to have a greater appreciation of the difficulty in making good investment decisions.

The survey was written by Gerald M. O’Connor, head of Spectrem Group’s research initiative in the retirement services and institutional investment markets, which produces surveys that attitudes, behaviors and market needs.

Additional information and more insights are available at Spectrem’s Millionaire Corner.

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