Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
April 20th, 2018
Benefits & Administration
Wealthier Investors Cannot Escape Retirement Health Cost Concerns
Sixty-nine percent of high-net-worth (HNW) investors in the U.S. worry about how they will cover health care costs in their later years, as longevity continues to expand, UBS found in a survey. Seventy-seven percent of U.S. wealthy investors say health is more important than wealth, and 57% are worried their health will deteriorate in the next 10 years. Read more >
$280K Is What a Couple Retiring This Year Will Need to Cover Health Care
A 65-year-old couple retiring this year will need $280,000 to cover health care and medical expenses throughout their retirement, according to Fidelity Investments. This is a 2% increase from 2017—and a 75% increase from Fidelity’s first estimate in 2002. Fidelity says the cost breaks out to $133,000 for men and $147,000 for women, primarily because of their expected longer lifespans. “Despite this year’s estimate remaining relatively flat, covering health care costs remains one of the most significant, yet unpredictable, aspects of retirement planning,” says Shams Talib, executive vice president and head of Fidelity Benefits Consulting. Read more >
Hearing Witnesses Lay Out How Multiemployer Pensions Got Where They Are
Witnesses for the newly formed Joint Select Committee on Solvency of Multiemployer Pension Plans spelled out for legislators the history of multiemployer pensions and how they got into the crisis they are in today. “A combination of economic, demographic, and regulatory changes have placed a small but material segment of these plans at risk,” Ted Goldman, senior pension fellow with the American Academy of Actuaries, told the committee. Read more >
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Some Help for Women’s Retirement Savings Gap May Be Coming
Employees Desire Retirement Education and Coaching
An Accenture survey of workers and retirees in the U.S. and Canada found that 82% would like more help with retirement planning, and 84% would like assistance with retirement coaching. Nearly half would like a digital retirement coach. Read more >
Products, Deals and People
Investment Products and Services Launches
Neuberger Berman Addresses Volatility with PutWrite Fund; PanAgora Adds ESG Alpha Factors; and Hartford Funds Expands ETF Roster. Read more >
Sponsored message from DST Systems
Best Practices for Addressing Automatic Participant Rollovers.  Helping plan sponsors save time and money whilereconnecting participants with their retirement savings.  Download the white paper:  Read more >
Economic Events

In the week ending April 14, the advance figure for seasonally adjusted initial claims for unemployment insurance was 232,000, a decrease of 1,000 from the previous week’s unrevised level of 233,000, the Labor Department reported. The four-week moving average was 231,250, an increase of 1,250 from the previous week’s unrevised average of 230,000.

The average interest rate for a 30-year fixed-rate mortgage is 4.47%, up from 4.42% one week ago, according to Freddie Mac. The average interest rate for a 15-year fixed-rate mortgage is 3.94%, up from 3.87%.

Market Mirror

Thursday, the Dow slipped 83.18 points (0.34%) to 24,664.89, the NASDAQ lost 57.18 points (0.78%) to finish at 7,238.06, and the S&P 500 decreased 15.51 points (0.57%) to 2,693.13. The Russell 2000 closed 9.74 points (0.62%) lower at 1,573.82, and the Wilshire 5000 was down 146.51 points (0.52%) at 27,995.01.

The price of the 10-year Treasury note decreased 11/32, bringing its yield up to 2.913%. The price of the 30-year Treasury bond fell 25/32, increasing its yield to 3.101%.

Compliance
DOL Announces Fiduciary Seminar in New York City
The compliance assistance program will increase awareness and understanding about basic fiduciary responsibilities when operating a retirement plan. Read more >
Investing
Institutional Investors Could Enhance Returns With Better Vehicle Selection
Institutional investors are leaving money on the table by using familiar investment vehicles like bonds without first looking to see if they could obtain the same exposure efficiently with another product like an exchange-traded fund (ETF) or a future, a study from Greenwich Associates contends. “Portfolio managers and their trading desks primarily choose [investment] instruments based solely on personal experience rather than through an analytical process,” says Kevin McPartland, with Greenwich Associates. Read more >
Small Talk

ON THIS DATE: In 1775, American troops began the siege of British-held Boston. In 1836, the U.S. territory of Wisconsin was created by the U.S. Congress. In 1861, Robert E. Lee resigned from U.S. Army. In 1902, scientists Marie and Pierre Curie isolated the radioactive element radium. In 1912, Fenway Park opened as the home of the Boston Red Sox. In 1945, during World War II, Allied forces took control of the German cities of Nuremberg and Stuttgart. In 1953, Operation Little Switch began in Korea. It was the exchange of sick and wounded prisoners of war. Thirty Americans were freed. In 1961, FM stereo broadcasting was approved by the FCC. In 1967, U.S. planes bombed Haiphong for first time during the Vietnam War. In 1988, the U.S. Air Forces’ Stealth (B-2 bomber) was officially unveiled. In 1989, scientists announced the successful testing of high-definition TV. In 1999, Jane Seymour received a star on the Hollywood Walk of Fame.

And now it’s time for FRIDAY FILES!

This will teach “Grammy” not to answer the phone. Read more >
Check out these letters children wrote to God. Read more >
In Durham, North Carolina, Bull City Burger and Brewery is currently celebrating “Exotic Meat Month.” The restaurant is featuring burgers made with everything from alligator to iguana, python, bison, turtle and insects. But it’s the tarantula challenge that is gaining the most attention, according to local TV station WRAL. For $30, customers get a 100% North Carolina pasture-raised beef burger topped with Gruyère cheese, chili sauce and an oven-roasted tarantula. And if they finish their plate, they get a T-shirt to immortalize the eight-legged feat, according to Bull City’s website. However, the restaurant purchased only 18 zebra tarantulas so anyone wanting to try the burger has to win a “tarantula raffle” first. [pic] Read more >

In Pilar, Argentina, a half-ton of pot disappeared from a police warehouse. About 13,000 pounds of bud were supposed to be in storage, but a recent police inspection revealed 1,000 pounds were missing, according to The Guardian. The city’s former police commissioner and three of his subordinates told a judge the missing mari.juana must have been eaten by mice. However, experts said rodents wouldn’t confuse pot with food, and in the off-chance they did, the mice likely would have died from it, and investigators would have found the dead mice. Eight officers were dismissed from their jobs, and will testify in front of the judge on May 4. The judge will then decide if the drugs are missing due to “expedience or negligence,” according to the BBC.

 

In Royal Palm Beach, Florida, a man was involved in a car crash. He told a sheriff’s deputy he had been cut off by another driver and could prove it with his dashboard camera. He then signed a consent waiver to search the camera, according to the Associated Press. However, the camera showed more than the driver wanted police to see. When the Palm Beach County Sheriff’s deputy reviewed the footage, he saw the man burglarizing a beauty store. Authorities say the video showed the man taking a baseball bat from the trunk and someone using the bat to break the glass door to the store. He was arrested on burglary charges.

 

In Monroe, Louisiana, police say a woman came home to discover a nak.ed stranger in her tub, eating her Cheetos while taking a bath. The intruder was arrested on burglary and property damage charges. The Fort Worth Star-Telegram reports that a responding officer found “a full tub of water and a plate of food along with half eaten Cheetos belonging to the victim on the toilet next to the tub.” The female intruder told the homeowner and police that an unknown male had told her to break into the house.

 

Have a great weekend!

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

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

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