Chart of the Week: Americans Being Hounded by Debt Collectors

Chart of the WeekNearly one in three adults with a credit history in the United States—or approximately 77 million people—are behind their debt payments and their accounts have been classified as “in collections.” The data (from a recent Urban Institute study) focused on non-mortgage debt such as credit card and medical bills, child support payments and  parking tickets. The debt in collections ranging from as little as $25 to as much as $125,000, with the average amount owed being $5,200.

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Video: Profits with a Purpose

Profits with a purpose is more than a mantra. It’s a reflection of American Century Investments’ unique ownership structure. Through the generosity of the company’s founder, the late James “Jim” Stowers, Jr., and his wife Virginia, more than 40% of the firm’s profits are distributed to the Stowers Institute for Medical Research. Since 2000, total dividend payments to the Institute have exceeded $1 billion to support its mission of improving life’s quality through innovative approaches to the causes, treatment and prevention of diseases like cancer. Continue reading

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Chart of the Week: Behold, the Great Wealth Transfer!

Chart of the WeekBaby boomers, the generation of people who were born between 1946 and 1964, have already started to pass their money down to their heirs. This immense transfer of financial and non-financial assets exceeds $30 trillion ($17 trillion in investable assets) and is expected to continue over the next few decades—targeting Generation X and Generation Y/Millennials as the beneficiaries. Continue reading

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What Is the Mission of the Stowers Institute? (Part II)

chaoQ: What makes the institute unique?

A: The institute is an organization like no other. There are actually three reasons for that:

1. Our approach to funding
We are an endowment-based organization that is chiefly funded through an endowment. The reason that is important for us is because we are able to pursue questions whose answers have a long-term payout. It also allows us to have our scientists focus on doing research, as opposed to grant funding. Continue reading

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Equity Market Neutral Investing, Part IV: Our Process

The equity market neutral strategy is a natural extension of the American Century Investments® value team’s existing capabilities—we have been managing value portfolios since 1993, with extensive experience as stock pickers. The team identifies and pairs highly correlated business models—going long the more undervalued company and short the overvalued company.

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Chart of the Week: Couples and the Great Money Divide

Chart of the Week

Money causes the most discord between couples—over things like chores, what to eat, and other matrimonial matters—with 70% of married people arguing about financial matters. According to a recent survey by Market and Research Resources, a spouse’s main complaint is about frivolous spending (55%), while saving (37%), dishonesty (21%), and exclusion from decisions (11%) also enter into the monetary picture. An encouraging sign is that the tension subsides as you get older: Less than 60% of couples over the age of 65 argue about money, while nearly 80% of couples 35 to 44 years old bicker. Continue reading

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Plan Sponsors: Analyze the Glide Path

RetirementA target-date fund’s glide path reflects its risk and return potential over time. The glide path gradually shifts the fund’s asset allocation from a more aggressive position in the early years to a more conservative position as retirement approaches. As you evaluate target-date funds for your plan, review the glide path to determine if the risk/return potential is appropriate at all points along the way. Continue reading

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What Is the Mission of the Stowers Institute? (Part I)

chaoQ: What is the mission and goal of the Stowers Institute?

A: The mission of the Stowers Institute is to improve human health by pursuing basic research problems. Our goal is to understand the fundamental mechanisms of life and use those insights to improve our approaches to treating, preventing, and curing diseases. Continue reading

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Equity Market Neutral Investing, Part III: How It Works

The primary goal of a market neutral fund is to benefit from a manager’s ability to select stocks. Historically, this has typically been managed through a quantitative investment process, but there are more and more fundamental managers entering the space. In selecting stocks for the fund’s long portfolio, the portfolio managers attempt to purchase stocks of companies that they believe are attractive. The same fundamental process is utilized to identify stocks that they believe are unattractive, which will make up a fund’s short positions. Continue reading

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Plan Sponsors: Measuring Target-Date Fund Performance and Risk

RetirementTarget-date funds may have a positive impact on participants’ investment results. One study shows that, on average, participants using employer-provided assistance such as target-date funds, managed accounts or online advice generated higher returns than participants who selected their own investments. Continue reading

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