Busy week. Here’s what we covered:
Industry Trends & Research
EBRI’s Nevin Adams, noted writer and prolific NAPA Conductor, opined about how hard it is for plan advisors to know how much participants should save with the moving target of health care costs; EBRI research indicated that more people are working longer to retain health insurance. And LIMRA research showed that fewer smaller businesses are offering benefits and, if they do, they’re more likely to offer health care benefits rather than retirement. Even with greater conversion flexibility, 401(k) participants are not flocking to Roths; people who have good family role models are more likely to have a financial plan and feel more secure; and New York Times columnist Thomas Friedman warned that the new age of hyper-connectivity could leave many in the dust who do not constantly learn and innovate.
Investments
KKR and possibly other private equity firms may be the next 401(k) investment option. Are Morningstar star ratings useful for predicting future performance? And NAPA Conductor Kathleen Beichert from Oppenheimer Funds highlighted the value of investing in emerging market sovereign debt.
Regulations & Legislation
Aon Hewitt provided a list of bills and regs that will likely be considered in 2013; the law firm of Lewis and Roca warned advisors about activities that would make then a deemed fiduciary; and John Carl of the Retirement Learning Center provided guidance on non-spouse beneficiaries. What effect will Sen. Tom Harkin’s announced retirement have on the likelihood of his USA Retirement Funds idea being enacted? And one broker was forced to pay a fine to FINRA for consulting on a 401(k) plan, violating the rules against outside business activities.
Practice Management
Schwab reported gains in 2012 on the size if not the number of RIA mergers, with some experts predicting a robust 2013. And Reuters pointed out the challenges facing regulators of advisors as social media continues to evolve.
NAPA News
The three finalists for the 2013 Leadership Award were announced, as was the September 2013 Washington Fly-in Forum for elite plan advisors only; the agenda includes meetings with regulators and congressional leaders.
