According to academic research from 1997-2011, investors will reward funds that outperform their benchmarks when the market is up but not when it’s down. When the market experienced negative returns... Read More
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Plan Optimization
BY Fred Barstein | 7/29/2013
With the federal government looking for any and all ways to generate revenue, there’s speculation that stretch IRAs are likely to be cut, according to a recent article by two law professors. Stretch... Read More
BY Fred Barstein | 7/26/2013
According to British politician Ed Miliband, “...the only time we made progress, we did it by challenging the conventional wisdom.” Taking that challenge, Schwab’s Rande Speigelman exposes what he... Read More
BY Brian Graff | 7/25/2013
As we reported last week, a Yale University Law School professor sent letters to over 6,000 plan sponsors suggesting their 401(k) plans were “high cost” and, among other things, implying that they... Read More
BY Fred Barstein | 7/25/2013
Though appealing in theory, the use of managed accounts (MAs) in DC plans has not only been low but also seems to be declining. According to research by the PSCA, only 3.6% of plans offer MAs, and... Read More
BY Fred Barstein | 7/24/2013
People are watching the Detroit bankruptcy filing carefully, wondering whether it is the start of a trend for other cities and municipalities in financial trouble – many driven by underfunded pension... Read More
BY Fred Barstein | 7/22/2013
With the societal shift from reliance on DB plans to DC plans, there could be a number of unforeseen and unintended consequences. The drop in DB coverage from 1985 to 2011 has been precipitous,... Read More
BY Fred Barstein | 7/17/2013
Though TDF assets grew 20% in 2012, according to a joint report from Brightscope and TD Analytics, the net number of TDFs dropped from 50 to 48, a first since the rating agencies started covering... Read More
BY Brian Graff | 7/15/2013
We have recently learned that a Yale Law School professor has sent a letter to thousands of 401(k) plan sponsors. The professor is doing a “study” on the financial impact of plan fees and has... Read More
BY Fred Barstein | 7/15/2013
Walt Bettinger, Schwab’s CEO, laments how the current system is rigged against individuals buying stocks, setting out four reasons why the number of investors owning stocks or mutual funds, or... Read More
BY Fred Barstein | 7/12/2013
Well, maybe not this year, but firms with private offerings like hedge funds, private equity and other alternatives can now advertise, as the SEC has lifted its ban under the JOBS Act. More... Read More
BY Fred Barstein | 7/10/2013
All good things must come to an end — even for Vanguard, which has enjoyed success in recent years riding the passive and TDF waves. In June the company experienced its first month of net redemptions... Read More
BY Fred Barstein | 7/8/2013
We all know that loans and hardship withdrawals seriously deplete savings in retirement. A new infographic from Fidelity based on data from more than 20,000 plans and 12.3 million participants... Read More
BY Fred Barstein | 7/8/2013
Should auto-enrollment be required? The answer is clearly “yes,” according to Alicia Munnell, director of the Retirement Research Center at Boston College. Though participation rates saw a major... Read More
BY Fred Barstein | 7/2/2013
Some people concerned about rough markets ahead are turning to hedged mutual funds, according to a Wall Street Journal article. Though still a fraction of the overall market, hedged mutual funds keep... Read More
BY Fred Barstein | 7/1/2013
The auto DC plan is the talk of the industry (along with TDFs), but we’re still learning how to best manage these relatively new tools to improve participant outcomes while being sensitive to... Read More
BY John Ortman | 6/27/2013
Christopher Carosa over at Fiduciary News polled several prominent investment advisors about the basic investing concepts that are most important for 401(k) participants to understand. He came up... Read More
BY Fred Barstein | 6/24/2013
Northern Trust released the inaugural edition of the DC Tracker, a report that follows how investors moved their money based on the 85 plans and $190 billion of assets for which Northern Trust... Read More
BY Fred Barstein | 6/21/2013
Not all passive funds are created equal. The most popular style is market weighted indexing, which was made popular by and is dominated by Vanguard. But other styles have emerged which try to beat... Read More
BY Fred Barstein | 6/20/2013
Citing cost and participant preference, CalPERS has gone 100% passive in their $1.64 billion supplemental income plans. State Street was chosen to manage the new investments covering U.S. and... Read More
BY Fred Barstein | 6/20/2013
More plan sponsors than ever are looking to change their DC investment lineup, according to a recent Cogent survey of 600 plan sponsors. While many experts believe that last year’s fee disclosure... Read More
BY Fred Barstein | 6/20/2013
Are REITs in the late innings of their run? Many experts are pulling back following their recent decline of 10% since May 21. (Compare that with a 2% decline for the S... Read More
BY Fred Barstein | 6/18/2013
DCIOs go to and fund a lot of industry and partner meetings but they’re frustrated that their portfolio managers don’t get a chance to interact with advisors and discuss investments. So eight DCIOs... Read More
BY John Ortman | 6/18/2013
Collective investment trusts — funds operated by a trust company or bank that handle a pooled group of trust accounts — continue to grow in popularity as an alternative to mutual funds in 401(k)... Read More
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