If you make decisions regarding the administration of your employer’s retirement plan or its investment choices, then you are a fiduciary to the plan. As a fiduciary, you are charged with making decisions that can impact the employees’ assets in the plan, and ultimately their retirement readiness. Those decisions must be prudent, but they should also drive your plan toward being a good plan. However, you may ask what does it mean for a plan to be a good plan?
What are your goals for your retirement plan? Are you a plan sponsor reviewing your plan and wondering to yourself, “Why is my plan not performing competitively against others,” or even more so, “How do I increase employee participation in my retirement plan?”
The answer could be, as we will outline in this post, something as simple as adding auto features to your plan design.
- 28% of Americans have no emergency savings
- 47% of Americans cannot afford an emergency expense of $400
- Indebted households have an average credit card balance of $16,061
- An average household pays $1,292 in credit card interest each year
The end of the year is approaching fast. For many of us, that means spending time with friends and family and eating way too much. Before we get distracted from one of the happiest (and most stressful) times of the year, here are some year-end tips you may want to consider with your investments: Continue reading
Parents’ lives change the minute their child is born. Once the excitement wears off, they start to see how their financial situation has changed as well. Their human nature is to sacrifice greatly for the betterment of their children. As parents, they need to manage those sacrifices, so they do not end up sacrificing their retirement goals as well. One major obstacle for parents investing in their retirement is also saving for the increasing costs of their child’s future college education. A survey by T.Rowe Price, “Parents, Kids, & Money”, reveals how conflicted parents are trying to save for both retirement and college: Continue reading
For the past decade or so, index funds have become all the rage from academia, to Middle America, to the corporate boardroom. Index funds are designed to replicate the performance of an underlying index by buying all (or substantially all) the securities in that index. There are dozens of index providers such as S&P, Dow Jones, Morningstar, Russell, CRSP, and MSCI. Index mutual fund companies pick one of these index providers to build their index funds around. However, some investors are surprised to discover that all indexes with the same mandate don’t necessarily perform the same. Continue reading
Robert McCracken, CFP®, Director of Finance and Operations, was recently quoted in PLANSPONSOR’s article “Fear Factor – Standing up to the possibility of employee pushback”. Rob discusses the concerns employers have about auto-enrollment and employees’ actual perception of it. Continue reading
As a plan sponsor and fiduciary, you can help your employees become retirement ready while satisfying your fiduciary duties and minimizing your risk.
Our Investment Education and Advice Guide will:
- Define Investment Education and Advice
- Explain the Safe Harbors for Providing Investment Education
- Help you understand the fiduciary risks of providing advice, and why you should provide advice
Submit your information below to download our free “Investment Education and Advice Guide”.
In a historic vote, the people of the United Kingdom (UK) have voted to leave the European Union (EU), and markets around the globe are moving wildly today. The British Exit or “Brexit” from the EU has several implications long and short term, but first it is important to understand what happened and why. The vote is a culmination of anxiety from the British people about relinquishing control of their laws to the EU, which is based in Brussels. The UK had very little control over policy in general, but immigration and trade were two of the main sticking points. While immigration has boiled over of late, with the mass influx of people from the Middle East, it has roots further back to 2004 when several of the former Soviet Union satellite countries joined the EU and many of their people immigrated to the UK. The EU allowed for refugees to immediately claim unemployment benefits with no requirement for living in the host country for any period of time. This cultural issue now created an economic problem for the UK. Continue reading
Every day retirement advisers help people plan for their retirement by quizzing them on their assets, liabilities, personal finances, net worth, and lifestyle choices. They assist people in establishing and reaching retirement financial goals. The advisers crunch numbers and analytically estimate what retirement will look like for their clients. They build graphs, make assumptions, and run a Monte Carlo simulation model for their clients. Continue reading