The Markets November 15, 2017

Target-Date Funds See Net Outflows From Retirement Accounts in October

However, they still held the largest percentage of total balances in October and received the largest percentage of contributions.
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Trading among defined contribution plan investors was moderate in October, with three days of above normal trading activity, according to the Alight Solutions 401(k) Index.

On average, 0.014% of balances traded each day. There was a 50/50 split of trading days favoring equities and those favoring fixed income.

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Most trading inflows went to international (46%), bond (22%), and large U.S. equity funds (14%), while outflows were primarily from company stock (40%), target-date (34%), and stable value funds (20%).

At the end of October, 67.9% of balances were invested in equities, up from 67.6% at the end of September, and 67.2% of new contributions were invested in equities, up slightly from 67% in September. Target-date funds held the largest percentage of total balances in October (27%) and received the largest percentage of contributions (46%).

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Data & Research November 15, 2017

Lack of Retirement Savings Causing Anxiety for Americans

A lack of retirement savings is one of the two biggest contributors of financial anxiousness, a survey found.
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Health care, retirement savings and student loans are the top causes of investor’s financial anxiety, according to a survey by Rubicoin, a digital investment platform provider.

Among all investors, mounting health care expenses and bills (23.5%) and a lack of retirement savings (22.6%) are the two biggest contributors of financial anxiousness. For Millennials, student loan debt, credit cards and health care expenses all measured equally as causes for “extreme” amounts of financial stress.

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A lack of emergency savings and health care expenses are factors causing Millennial women to stress the most. Gen X women cite health care expenses and a lack of retirement savings to cause the most anxiety, followed closely by a lack of emergency savings. Women of both generations are primarily stressed about health care expenses and that only increases, alongside a lack of retirement savings, the older women get.

Being ill-prepared for retirement is another, if not the top, factor causing stress among all Americans, not just women, according to Rubicoin.

“Millennials are confident in the U.S. stock market to provide a substantial return, but are extremely anxious about their personal debts and expenses, ranging from health care to credit cards to student debt,” says Emmet Savage, CEO of Rubicoin. “It’s important for young investors to manage and pay-down those debts while simultaneously pursuing smart investment opportunities.”

The survey was conducted online within the United States by Rubicoin using Google Survey technology in October 2017 among 620 people classified as American investors. Generations classified as Millennials, Gen X and Baby Boomers were equally represented in the survey.

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