Tooth Fairy Earnings Could Add $20K to Retirement Savings

If today’s 6-year-olds were to invest all the money they receive from the Tooth Fairy, they could be sitting on a collective total of roughly $70 billion by the time they reach 67, according to a new analysis from Delta Dental Plans Association.

That equals $21,000 per child. Delta Dental’s 2015 The Original Tooth Fairy Poll found the Tooth Fairy visited 81% of homes in the United States in 2014, meaning that out of the current 4.1 million 6-year-olds, about 3.35 million received money for lost teeth.                   

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The retirement income figure is based on a 6-year-old (the average age for first tooth loss) receiving the national average Tooth Fairy gift of $4.36 (from Delta Dental’s most recent survey of U.S. parents of 6- to 12-year-olds), with 6.5% in-mouth inflation (the typical increase for Tooth Fairy gifts from year to year) for each subsequent tooth, and a 9.6% return on investment based on historic stock market returns (S&P 500 average) per year until they turn 67.

By region, the retirement savings will vary in line with the average 2014 Tooth Fairy gift:

  • Northeast: $20,477 (average 2014 Tooth Fairy gift of $4.16);
  • Midwest: $13,910 (average 2014 Tooth Fairy gift of $2.83);
  • South: $25,362 (average 2014 Tooth Fairy gift of $5.16); and
  • West: $23,004 (average 2014 Tooth Fairy gift of $4.68).

According to Delta Dental’s The Original Tooth Fairy Poll, the average Tooth Fairy gift reached a record high last year, up 24.6% from 2013 when the average gift was $3.50. A recent poll of PLANSPONSOR NewsDash readers found 63% of parents said their children receive(d) between $1.00 and $5.00 per tooth.

Retirement Industry People Moves

New hires and promotions at Nationwide and Mercer Investments, as well as new office locations for Pensionmark.

Nationwide has named Ben Hoecherl ­the new leader of Nationwide ProAccount, the firm’s managed account service designed to make institutional-quality investing available to retirement plan participants. Hoecherl’s responsibilities include directing long-term strategy, operations and sales for ProAccount.

Hoecherl served most recently as the manager of product management and development at Advised Assets Group, focusing on the professional asset management program offered through Empower Retirement plans. He has previous experience in investment research and portfolio construction methodology.  

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Hoecherl holds a bachelor’s degree in finance and business from the University of Utah and a master’s degree in business administration from Regis University in Denver. He holds the Chartered Financial Analyst (CFA) designation as well as his FINRA Series 65 license.

Nationwide reports that more than 100,000 plan participants use the ProAccount service, totaling more than $3.6 billion in assets under management.

NEXT: Moves at Mercer Investments

Jordan Nault has been promoted to global leader of Mercer Investments’ hedge fund boutique.

Nault, who has been with Mercer since 2006, has experience as a senior investment consultant and has worked with a wide variety of institutional clients. She has served as the chair of the target-date fund (TDF) strategic research team since 2012 and was instrumental in developing a process to support TDF research coverage. She is also a member of the alternatives strategic research team and defined contribution committee, where she has been actively involved in leading Mercer’s research in liquid alternatives.

Nault began her career at Mercer in New York and relocated to Chicago to pursue her master’s degree. She will remain in Chicago, where she is currently based, and report to Deb Clarke, global head of investment research at Mercer Investments.

Nault holds a bachelor’s degree in Russian and Eastern European studies from the University of Michigan, and a master’s degree in business administration from the University of Chicago Booth School of Business.

Mercer also announced the appointment of Ben Thorndike as North America alternative investments leader. He is responsible for marketing and sales in North America for Mercer’s private equity, private debt, hedge funds, real estate and infrastructure research, advice and delegated solutions. Previously, Thorndike was with FOC Partners and prior to that role, he held positions with HGGC (formerly Huntsman Gay Global Capital) and Bain Capital. Thorndike has more than 30 years’ investment experience.

Thorndike, based in Boston, reports to Troy Saharic, regional sales leader for Mercer Investments in North America.  He holds a bachelor’s degree from Colby College. He is a Chartered Financial Analyst (CFA) and a Chartered Investment Counselor.

NEXT: WealthPath Joins Pensionmark Financial.

WealthPath Investment Advisors has joined Pensionmark Financial Group. The affiliation is the first office in the Arkansas and Oklahoma regions for Pensionmark. The partnership will provide WealthPath the infrastructure to grow and expand its service offerings. WealthPath clients will continue to receive personalized and unbiased retirement plan and investment guidance. The entire WealthPath team will be joining Pensionmark, including partners Jim MoteJim EdmiastonErik Berry, Brent Harless and Clay Kendall, who cited the Pensionmark culture as a good fit for WealthPath’s business model and client care focus.

The WealthPath team brings its industry experience to Pensionmark, including advising some of the region’s premiere retirement plans and hundreds of individual clients. WealthPath also has a 15-year track record of managing portfolios for clients and will be bringing their proprietary risk-based asset-allocation models to the Pensionmark network of advisers.

“The additional services and features that Pensionmark offers to both individuals and retirement plans are exceptional, and we are excited to begin integrating these tools into our current practice,” Edmiaston said in a statement.

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