Products March 22, 2013

Market Vectors Launches High Yield Bond ETF

March 22, 2013 (PLANSPONSOR.com) – Market Vectors ETF Trust released a new exchange-traded fund (ETF), the Treasury-Hedged High Yield Bond ETF (NYSE: THHY).
Reported by

The fund will combine the income potential of high-yield corporate bonds with the interest rate hedging capability offering by shorting Treasury notes, according to Market Vectors. 

Fran Rodilosso, fixed income portfolio manager with Market Vectors, believes that it is not question of if investors will see rising interest rates, but simply when. “With THHY, investors have the ability to better position their bond portfolios now for a rising interest rate environment, but they can do so while still earning income on the fund and even have upside potential during a low interest rate environment,” said Rodilosso. 

For more stories like this, sign up for the PLANSPONSOR NEWSDash daily newsletter.

The long positions in THHY’s underlying index are comprised of U.S. below-investment grade corporate bonds, denominated in U.S. dollars. Qualifying securities must have a below-investment grade rating (based on an average rating of Moody’s, S&P and/or Fitch) and at least one year remaining to final maturity, a fixed coupon schedule, and a minimum amount outstanding of $500 million. The short positions in the index are composed of current five-year U.S. Treasury notes in the equivalent dollar amount of the long high-yield positions at every rebalance date. The fund and its underlying index do not currently use any swaps or derivatives. 

More information is at http://www.vaneck.com/funds/THHY.aspx.  

Products March 22, 2013

T. Rowe Price Offers Social Security Calculator

March 22, 2013 (PLANSPONSOR.com) - T. Rowe Price launched the Social Security Benefits Evaluator.
Reported by

The free, online tool is designed to help individuals decide what Social Security strategy may be suitable for their financial goals. The calculator not only estimates Social Security income, but also presents potential approaches for taking benefits based on the users’ goals and allows them to compare results of different Social Security strategies.  

The calculator is an appropriate resource for singles who are evaluating benefits based on their own work history, married couples with no more than six years’ difference in age, and financial advisers who want to provide Social Security guidance to their clients. Retirement plan sponsors may also see the tool as an effective, no-cost resource for their participants.  

Get more!  Sign up for PLANSPONSOR newsletters.

Many Social Security recipients may not realize that they could potentially receive more income or cater that stream of income to their needs by choosing one strategy over another. The calculator aims to help them better understand these choices and think about them in context of their retirement income needs.

Calculator Details 

 

  • The Social Security Benefits Evaluator prompts users to choose a goal for their Social Security income. Married couples can select one of seven goals, ranging from, "we want to maximize cumulative benefits as a couple" to "we want to minimize the drop in income for the surviving spouse." Singles can select one of three goals.  
  • After users provide some background information and choose a goal, the calculator offers a Social Security benefits strategy and estimates Social Security income based on the strategy.  
  • Income is shown as an annual cash flow, as well as a cumulative total to help users understand how the stream of income can be taken differently depending on their specific needs.  
  • Users can easily change their goals and compare how different strategies can generate different income streams throughout retirement.  
  • A glossary of more than 56 Social Security terms is provided in the right navigation pane of the tool to help users understand the jargon commonly used when discussing benefits.  

 

T. Rowe Price will be continually evaluating opportunities to improve the calculator's capabilities and encourages users to provide feedback by accessing the "Feedback" link displayed after going through the tool.  

"Many Social Security recipients may be leaving money on the table. We hope this tool begins to spark conversations about the choices preretirees are faced with when deciding when and how to claim benefits. People need to understand that the strategy they choose for taking their Social Security benefits needs to be based on their financial goals," said Christine Fahlund, senior financial planner with T. Rowe Price. 

The calculator is available at troweprice.com/socialsecurity. 

«