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Mutual Fund Death Watch

Mutual funds are disappearing at an alarming rate, retirement plan investors could save at least $17 billion per year and the Whisky Watch is an actual thing.

Mutual funds disappear at an alarming rate, according to the latest SPIVA U.S. Scorecard, released by S&P Dow Jones Indices. Over the last 15 years ending December 2016, more than 58 percent of domestic equity funds were either merged or liquidated. For global/international equity funds and fixed income funds, 52 percent and 49 percent, respectively, were gone after the 15-year period, the Scorecard found.

Big Data Analysis of Retirement Plans Finds $17 Billion of Annual Waste

Based on a conservative analysis of more than 52,000 retirement plans in the Department of Labor’s EFAST database, plan participants could save an average of 25 basis points by switching to lower cost investments that are similar to those they already hold. With a total of $6.8 trillion invested in DC plans, this would represent an annual savings of $17 billion. RiXtrema ran the study using the algorithms it makes available in its 401k Fiduciary Optimizer tool. The study is six times larger than a similar one RiXtrema released in January; the company said it’s the largest study ever of DC plans and required 17 days of non-stop calculation from 32 computers to crunch the numbers. “In the current study, only funds with a better 10-year track record than the incumbent funds were allowed to be used as replacements to obtain the savings,” said RiXtrema President Daniel Satchkov. “We also reran the analysis removing index funds and ETFs. The plan savings remained extremely high, in spite of the additional criteria.”

The Whisky Watch

Two things the ultra wealthy tend to gravitate toward are rare, expensive watches and equally rare and pricey alcohol. A new partnership between Wealth Solutions and watch brand Louis Moinet combines the two in The Whisky Watch, a timepiece that includes a drop of the oldest whisky in the world, Old Vatted Glenlivet 1862, inside. Just 50 watches will be made, Forbes reports. Forty of those will be stainless steel and cost about $14,000. The remaining 10 will be made of 18-karat rose gold and are selling for just under $35,000 apiece. The Whisky Watch joins Wealth Solutions' other "Spirit Watches," the Cognac Watch (with a drop of the oldest cognac in the world, Gautier 1762) and the Rum Watch (with a drop of the oldest rum in the world, Harewood 1780).

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