Administration May 4, 2011

Survey Shows a Couples Disconnect over Finances

May 4, 2011 (PLANSPONSOR.com) - A new national survey finds discrepancies in financial candor and spending habits among Americans aged 25-55 in committed relationships.
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According to the 2011 Lawyers.com Couples & Money Survey, of these Americans, four in ten agree that honesty about finances is more important than honesty about fidelity (compared to 2005 in which 24% agreed with this sentiment), yet nearly three in ten (29%) admit that they have withheld information from their spouse or partner regarding their spending on discretionary items, such as apparel, accessories, electronics and entertainment.  

The survey also shows that nearly all Americans in committed relationships (91%) agree that it is important to discuss their partner’s financial history before marriage, yet more than one quarter (26%) admit they tend to avoid talking about finances.   

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One in ten respondents say they have withheld information from their spouse or partner about their household finances (12%), their debt (12%), their spending from a joint account (10%), or their salary (8%). Men are nearly twice as likely as women to say that they have withheld information from their spouse or partner regarding their salary (11% vs. 6%).  

Half (52%) of adults in committed relationships report that all of their bank accounts are combined with their partner’s; 18% report that all of their bank accounts are completely separate from their spouse or partner; and 29% report having both combined and separate bank accounts.

Couples’ Hindsight  

The 2011 Lawyers.com Couples & Money Survey found that a majority of Americans in committed relationships (85%) say they would do things differently to manage their financial situation if they had the opportunity to go back in time. 

Nearly two-thirds (64%) would put more money into savings; over four in ten (46%) would put more money into retirement account(s); and over one-third (36%) would put more money into investments such as stocks, bonds, and mutual funds. Nearly half (49%) would spend money more responsibly.   

In addition, one in five Americans in committed relationships (21%) would discuss financial goals/expectations earlier in their relationship and one in ten (10%) would be more honest with their spouse or partner about their spending.   

The online survey was conducted by Harris Interactive in April 2011 among 949 U.S. adults ages 25-55 in committed relationships.
Products May 4, 2011

S&P Indices Sets Out New Inflation Hedging Index

May 4, 2011 (PLANSPONSOR.com) - S&P Indices has announced the launch of the S&P 500 Oil Hedged Index. 
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According to a press release, the index is calculated as a combination of a long S&P 500 position overlaid with long positions in NYMEX Oil futures and ICE Brent Crude Oil futures.

S&P Indices notes that the S&P 500 Oil Hedged Index seeks to reduce the effects of a rise in inflation, as reflected in higher oil prices, or against declines in the value of the U.S. Dollar by simulating the returns of an investment strategy that is long the S&P 500 and hedged against changes in the U.S. Dollar, as measured by oil prices. “By holding long oil futures contracts, investors may benefit from an increase in oil prices or potentially sustain losses when the opposite occurs,” according to the announcement.

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The index uses NYMEX Crude Oil and ICE Brent Crude Oil futures as a hedge. The hedge position has 50% in NYMEX Crude Oil and 50% in ICE Brent Crude Oil at the close of each rebalancing day. The hedge only protects against adverse movements in the relative value of the U.S. Dollar, as expressed in the dollar price of oil. Stock market risk is not hedged in any way.

“Investors are increasingly looking for alternative methods to hedge against inflationary risk during this period of global economic uncertainty,” says Alka Banerjee, Vice President at S&P Indices. “We would expect funds that replicate returns on the S&P 500 Oil Hedged Index to provide investors with a means to mitigate the potential negative impact on an investor’s portfolio resulting from a rise in inflation or decline in the U.S. Dollar.”

The S&P 500 Oil Hedged Index belongs to the S&P U.S. Index family. Other closely related S&P indices include British Pound, Canadian Dollar, Euro, Yen, and Gold hedged S&P 500 indices.

More information is available at http://www.standardandpoors.com/indices.

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