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November 23rd, 2021 Information & Insights for the 403(b) Community 4% Withdrawal Rule Squeezed by Low Returns Research from Morningstar finds that a 3.3% starting withdrawal rate is more sustainable given today’s low bond yields and high stock valuations. House Committee Approves Bill Aimed at Increasing Retirement Plan Coverage Among other things, the RISE Act would encourage retirement savings by allowing plan sponsors to offer small financial incentives to motivate employee participation. Ask the Experts Difference Between Annuities and Mutual Funds “I just started working in employee benefits at a private university and am new to 403(b) plans. I understand that the only permissible investments un 403(b) plans are annuities and mutual funds, but can you explain the difference between the two?” Expect More Difficulty Obtaining Fiduciary Insurance Issuers of fiduciary liability insurance are paying close attention to the glut of lawsuits filed in recent years against plan sponsors and fiduciary service providers—and they don’t like what they see. Tailored Benefits Can Help Ease Turnover Concerns The vast majority of employees say they would feel more invested in staying with their employer if it offered tailored financial benefits that meet their evolving needs. Employees Don’t Want ‘All or Nothing’ When It Comes to Guaranteed Lifetime Income Eighty-one percent of respondents to a survey indicate they are at least somewhat likely to prefer a retirement plan that substitutes guaranteed income for safe investments such as bonds. Did someone forward you this newsletter? Sign up here to get (b)lines directly in your mailbox! Unsubscribe | Manage Subscriptions | Contact Us Copyright ©2024 Asset International, Inc. All rights reserved. No reproduction without prior authorization. Modern Slavery Statement 2022 | Do Not Sell My Personal Information | Privacy (including cookies), Social Media & Legal 702 King Farm Boulevard, Suite 400, Rockville, MD 20850