Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
December 14th, 2016
Benefits & Administration
Asked what their financial goal for 2017 is, 50% of respondents to a Fidelity Investments survey said to save more, 28% said to pay down debt, and 16% said to spend less. Among those thinking about the long term, 64% want to save more for retirement in an individual retirement account (IRA) or 401(k) plan. Read more >
Retirement Savings May Take a Back Seat in 2017
Moving into the New Year, Americans’ prospects for a comfortable retirement are not looking too bright. A year-end report by NerdWallet finds that only 29% of respondents reported feeling confident that they saved enough for retirement this year. Nearly one in three aren’t saving at all. The survey also revealed major anxiety over lack of savings, and other financial obligations that may be forcing retirement savings to take a back seat. Read more >
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Plan Participants Not Paying Enough Attention to Accounts
A significant majority (80%) of respondents to a survey by Voya Financial said they had not taken the time to review or revise their retirement plan within the past year. Further, more than half (53%) confirmed that they did not review their retirement plan even after experiencing a major life change that impacted their finances. Read more >
Given Dollars to Choose Benefits, Retirement Still Top-Ranked
Given a certain amount of money annually to allocate toward the benefits they want, nearly 90% of workers ranked health care coverage and retirement savings plans in their top five most important benefits. However, preferences for other benefits differed by generation. Read more >
Sponsored message from Vanguard
Retirement distribution decisions among DC participants Most retirement-age DC plan participants leave their plan within five years of separation from service. Participants are more likely to remain when plans permit flexible distributions, having implications for target-date fund design. Read more >
Market Mirror

Tuesday, the Dow gained 114.78 points (0.58%) to finish at 19,911.21, the NASDAQ climbed 51.29 points (0.95%) to 5,463.83, and the S&P 500 increased 14.76 points (0.65%) to 2,271.72. The Russell 2000 was virtually unchanged at 1,373.53, and the Wilshire 5000 closed 125.85 points (0.53%) higher at 23,745.19.

On the NYSE, 3.1 billion shares changed hands, with 1.4 advancing issues for every declining issue. On the NASDAQ, 2.9 billion shares traded, with a 1.2 to 1 ratio of advancers to decliners.

The price of the 10-year Treasury note was unchanged, with its yield at 2.473%. The price of the 30-year Treasury bond increased 14/32, bringing its yield down to 3.132%. 

Ask the Experts
Year-End Action Items for 403(b)s
“As 2016 comes to a close, are there any year-end retirement plan action items that warrant special attention?” Read more >
From the Magazine
Why Fee Policy Statements?
Plan fiduciaries have recently been asking, “What steps can we take to avoid becoming an attractive target for fee litigation?” In light of the ongoing fee litigation, a plan fiduciary needs to augment prudent decisions with documentation showing its prudent process. In other words, it is no longer sufficient to simply make prudent decisions if you can’t show how you made them. Read more >
Investing
With an average of 0.035% of balances traded each day—the highest level since January 2013, investors in defined contribution (DC) plans kept busy for the month of November, according to the Aon Hewitt 401(k) index. The highest trading day of 2016 was November 9—the day immediately following the election—when balances traded were at 0.10%.  Read more >
Small Talk
If you want to buy that special someone the gifts included in the holiday classic “The 12 Days of Christmas,” they will only cost 0.7% more than last year, according to the 33rd annual economic analysis by The PNC Financial Services Group. PNC has released its annual Christmas Price Index, which assigns a cost to the gifts in the song “The 12 Days of Christmas.” Read more >

ON THIS DATE: In 1503, physician, astrologer and clairvoyant Nostradamus was born at St. Remy, Provence, France. In 1799, the first president of the United States, George Washington, died at the age 67. In 1819, Alabama joined the Union as the 22nd state. In 1900, Professor Max Planck of Berlin University revealed his revolutionary Quantum Theory. In 1903, Orville Wright made the first attempt at powered flight. The engine stalled during take-off and the plane was damaged in the attempt. Three days later, after repairs were made, the modern aviation age was born when the plane stayed aloft for 12 seconds and flew 102 feet. In 1946, the U.N. General Assembly voted to establish the United Nation’s headquarters in New York City. In 1962, the U.S. space probe Mariner II approached Venus. It transmitted information about the planet’s atmosphere and surface temperature. In 1984, Howard Cosell retired from the NFL’s Monday Night Football. In 1985, Wilma Mankiller became the first woman to lead a major American Indian tribe as she formally took office as principal chief of the Cherokee Nation of Oklahoma. In 1988, the first transatlantic underwater fiber-optic cable went into service. In 1999, Charles M. Schulz announced he was retiring the “Peanuts” comic strip.

 

 

WEDNESDAY WISDOM: “If opportunity doesn’t knock, build a door.”—Milton Berle, comedian

Share the good news with a friend! Pass the NewsDash along—and tell your friends/associates they can sign up for their own copy. Read more >

Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

Advertising: Paul Zampitella paul.zampitella@strategic-i.com

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