Commitment to retirement planning. In an especially difficult economic environment, not easily accomplished. However, as everyone who has been on the other side knows, it is really that single most steadfast approach that helps in the long run, and not reacting to the noise that distracts one's focus. The press release on ICI's web site … Continue reading Is it enough to stay the course or do we need to do anything different?
Communications. One of the critical components that determines the success of the retirement savings plan. With effective communications employees are able to understand the need to participate in the plan, how it helps them, and why not participating hurts their retirement planning in the long run. Plan sponsors have a very important role in deciding … Continue reading Are employees connecting with the communications in an ‘auto-‘ features environment?
With the increasing popularity of Target Date Funds in retirement plans - both from an offering perspective, as well as adoption by participants, it is no surprise that this asset class has a meaningful impact on the retirement landscape. The article and research paper by Vanguard provides a detailed look at the adoption statistics of … Continue reading Target Date Funds – adoption, impact, and oversight
Investment fund line up in the DC plan. To meet the fiduciary standards the due diligence required in selecting the right asset classes and individual funds is nothing less than rigorous. And even more so in this highly volatile economic environment. And how does a plan sponsor determine an appropriate fund line up to provide … Continue reading Selecting Fixed Income Fund options for retirement savings plans
Retirement. The theme of this blog, prompting thought provoking questions to our readers with the intention of planning for retirement. More often than not, most everyone thinks about the accumulation component. The other side of the equation is the drawdown aspect. Two sides of the same coin. One cannot exist without the other. If you … Continue reading The journey continues …
Employer Match. Free money in the 401(k). Something to make the most of - by participants. And in many instances, a cost effective way for companies to encourage participation in the retirement plan. Despite that, unless communicated effectively, participants have a difficult time understanding the dollar amount of the match that they could receive. In … Continue reading How do we best communicate plan options?
As it relates to employee benefits, if there were any one single challenge that most plan sponsors deal with, it might very well be: how to engage and convince employees the need to begin thinking about, and plan for, retirement as early in their career as possible. Despite everything that is reported in the media … Continue reading Is there a way to make inertia work for us?
401(k) loans and loan defaults. These terms conjure up all kinds of images depending on eyes the beholder. For a participant needing funds, a convenient, low cost way to access their 401(k) savings; for the plan sponsors, an unavoidable administrative inconvenience; for the record-keepers and trustees, the potential for a whole number of reconciliation issues. … Continue reading A short term convenience that has a detrimental long term impact
According to this article by Financial Planning, per a survey conducted by LIMRA, working with advisors has a positive impact on retirement readiness. The statistics are noteworthy enough for anyone on the fence on the value add of professional management, and whether to consider working with one. Per the survey, 71% people working with advisors … Continue reading Working with professionals to plan for retirement
Taking a slightly different approach than we have in recent posts, this article is about timing and location preferences for retirement. Some key observations from the PulteGroup survey that prompt thinking about these decisions. The fact that 62% people (an increase of 20% from two years ago) would stay in the same state could be … Continue reading When and where you would retire?