.png)
.png)
Happy Friday, and welcome back to the Life is Rich Roundup!
The new strategy offers lifetime income during retirement and will be available as a Collective Investment Trust (CIT). CITs are pooled retirement investment vehicles only available to qualified retirement plans like 401(k) plans and government plans.
“Providing plans with a new way to access lifetime income through a DC-friendly CIT will give plan sponsors the convenience and optionality they’re looking for.”
- Jennifer DeLong, head of defined contribution at AllianceBernstein
This comes shortly after BlackRock’s “Paycheck for Life” announcement. Read our thoughts on that here.
Cool visual of the total tax burden in each U.S. state as of March 2024. New York residents have the highest total tax burden, paying 12% of their income to state and local governments. On the other end of the spectrum, Alaska has the lowest: 4.9%.
Check out the full breakdown here.
The New York Times
Check out this fun and interactive little adventure about writing your retirement mission statement. It’s the exercise of writing down your key principles to help guide you toward your goals.
Check it out. Here’s our favorite part:
Retirement will probably be easier if we have people to share it with. Researchers have found that close relationships, more than money, are what keep people happiest after 65.
Maybe the most important thing we can do now is invest in relationships, even as we try to earn and save what we can.
- Ron Lieber, The New York Times
In a recent study from Northwestern Mutual, the average retirement savings balance among millennials is $62,600. That's a respectable sum for younger millennials in their late 20s. But the “elder” millennials closer to 40 are in trouble.
There’s no doubt millennials have had it tough, so it’s not surprising they are behind on retirement. But instead of listing all the hardships they’ve faced, we’ll just share this funny meme.
The headline kind of says it all. Spain’s Universidad de Alcalá recently released a report that found longevity in humans is increasing and the gap between male and female life expectancy is narrowing.
Now if only there was a new way to help hedge against longevity so people would have enough money in retirement. Oh, wait….
Shelter becomes “retirement sanctuary” for older pups
Just 4% of current retirees say they are ‘living the dream
Our amazing CU Boulder interns made it through finals and officially started at Savvly this week. In honor of them, our latest blog post focuses on how recent graduates can navigate the transition from campus to career with smart financial moves.
Roller coasters were invented in the 1880s to distract Americans from sin.
See the others here.
Got a story recommendation or idea to share for our next article? Hit us up at marketing@savvly.com.
Over and out,
Team Savvly
Assumptions and Risk Disclosure
The information on this page is provided for educational purposes only and is not intended as investment, legal, or tax advice. It is designed solely to illustrate how longevity-based investment benefits may work under certain assumptions. Actual results will vary.
All illustrations, examples, and case studies are hypothetical and are intended to demonstrate potential scenarios—not to predict or guarantee actual outcomes. They do not represent the performance of any individual investor, portfolio, or account.
Key Assumptions Used in the Illustrations
- Life expectancy and mortality projections are based on the most recent Social Security Administration (SSA) tables available at the time of simulation.
- In the event of death or early withdrawal, hypothetical scenarios assume that beneficiaries may receive 75% of the lesser of the initial investment or current market value, plus 1% for each full year the account was active.
- Case studies assume standardized market growth of 8% annually and do not incorporate unexpected market volatility, inflation, changes in interest rates, or changes in an investor’s personal circumstances.
- Simulations may assume a 3% annual early withdrawal rate prior to payout or death.
- All figures shown are net of fees.
Risks to Consider
- Market Risk: Investment values will fluctuate and may be worth more or less than the amount invested. There are no guaranteed returns.
- Sequence of Returns Risk: The order and timing of market gains or losses—particularly near the payout phase—can materially affect results.
- Longevity Risk: Living longer than projected may reduce the pooled benefit per participant; shorter-than-expected lifespans may affect the amount received.
- Redemption Impact: Early or voluntary withdrawals by other participants can impact overall fund performance and distribution outcomes.
No forecast, projection, or hypothetical return should be relied upon as a promise or representation of future performance. Investors should carefully evaluate their own circumstances and consult a qualified financial professional before making any investment decision.
