finra

FINRA

 

FOR RELEASE:
CONTACTS:

Tuesday, April 11, 2006

Nancy Condon (202) 728-8379

Sarah Bohn (202) 728-8988



NASD Investor Education Foundation Announces New Grant Program

Washington, DC — The NASD Investor Education Foundation launched its third 2006 grant program today, formally inviting non-profit groups and researchers to apply for funding for projects that research, develop, test, and evaluate products and strategies that apply contemporary financial theory in ways that help individuals make better life-cycle investing decisions. Grant proposals must be submitted by July 14.

 

The Foundation is interested in funding projects that will help investors build wealth during the pre-retirement years and manage wealth when retirement begins. The traditional theory of life-cycle investing holds that each individual progresses through various life-cycle phases during which retirement investment needs differ. While new asset classes have emerged, and new investment tools and techniques are available to help individual investors, additional efforts are needed to integrate the latest financial theory into everyday investment decision-making.

 

"Accumulating wealth is an important first part of our investing lives but learning how to manage that wealth during retirement years is just as critical to our financial security," said Foundation Chairman Robert R. Glauber, who also serves as NASD's Chairman and CEO. "We are hoping to learn more from new research that will provide individual investors the investment tools and techniques they can use when making these important investment decisions throughout the various cycles of their lives."

 

Of particular interest to the Foundation are projects that:

  • Help older Americans make sound investment decisions during their retirement years
  • Improve individuals' understanding of risk at various stages of their lives and make better life-cycle investment decisions as a result
  • Improve individuals' asset allocation, diversification, and rebalancing decisions
  • Assist mid-career individuals who must navigate the transition from a defined-benefit retirement plan to 401(k) or similar retirement investing

The Foundation has set no minimum or maximum for the number of grants to be funded or for the amounts of the grant awards. In considering grant requests, the merits of the proposed project will be the primary focus. Generally, projects should be neither less than 12 months nor more than 24 months in duration.

 

In addition to the Life-Cycle Investing grant program, the Foundation previously launched its 2006 General Grant Program, requesting proposals for education and research projects that will help provide individual investors with high quality, easily accessible information and tools to better understand investing and the markets. Grant proposals for the general grant program must be submitted by May 15. For details about grant programs and other new initiatives of the Foundation, visit www.nasdfoundation.org.

 

The NASD Investor Education Foundation, established in 2003, supports innovative research and educational projects that give investors the tools they need to better understand the markets and the basic principles of financial planning. The Foundation has awarded more than $4.5 million in total to organizations for educational programs and research projects targeting the underserved segments of the population.

 

NASD is the leading private-sector provider of financial regulatory services, dedicated to investor protection and market integrity through effective and efficient regulation. NASD believes that understanding should precede investing - and that education is often the best form of investor protection. NASD's broad range of investor education programs include Investor Alerts, brochures and online resource guides on such critical topics as mutual fund class shares and 401(k) and college savings plans. This information is distributed through its Web site, www.nasd.com, printed materials and Investor Forums.