Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
April 30th, 2018
Benefits & Administration
One-Quarter of Employees Do Not Know How Much They Need to Save for Retirement
More than half (53%) of workers ages 60 and older say they are postponing retirement, with 57% of men putting retirement on hold compared to 48% of women, according to a CareerBuilder survey. Approximately one-quarter (24%) do not know how much they will need to save for retirement. In addition, the survey found roughly one in four workers ages 55 and older (23%) said they do not participate in a 401(k), IRA or other retirement plan. Read more >
Compliance
Prison Sentences Handed Down in DOL ERISA Fraud Case
According to the Department of Labor (DOL) and Federal Bureau of Investigation (FBI), two former executives of First Farmers Financial produced false documents and sent them to a Milwaukee investment firm to support “sham loans,” causing the firm’s clients, including Employee Retirement Income Security Act (ERISA) retirement plans, to suffer nearly $180 million in losses. Read more >
IRS Reverses Change in HSA Limit
The Internal Revenue Service (IRS) says it is reversing the change to the limitation because stakeholders informed it that implementing the $50 reduction to the limitation on health savings account (HSA) contributions for an individual with family coverage under a high-deductible health plan (HDHP) would impose numerous unanticipated administrative and financial burdens. Read more >
MOST READ ARTICLES
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Adidas Sued Over Excessive Fees for 401(k) Participants
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Yale Sued Over Wellness Program ‘Penalty’
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Employees in Two States Miss Out on One HSA Benefit
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Some Help for Women’s Retirement Savings Gap May Be Coming
Economic Events

THE ECONOMIC WEEK AHEAD: Tomorrow, the Census Bureau will report about construction spending in March. Thursday, the Labor Department will issue its initial claims report, and the Census Bureau will report about factory orders in March. Friday, the Bureau of Labor Statistics will reveal the unemployment rate for April.

Market Mirror

Friday, the Dow was down 11.15 points (0.05%) at 24,311.19, the NASDAQ was up 1.12 points (0.02%) at 7,119.80, and the S&P 500 increased 2.97 points (0.11%) to 2,669.91. The Russell 2000 decreased 1.66 points (0.11%) to 1,556.24, and the Wilshire 5000 increased 12.78 points (0.05%) to 27,734.71.

 

The price of the 10-year Treasury note was up 4/32, decreasing its yield to 2.970%. The price of the 30-year Treasury bond increased 21/32, bringing its yield down to 3.132%.

 

WEEK’S WORTH: For the week ending April 27, the Dow fell 0.62%, the NASDAQ finished 0.37% lower, and the S&P 500 was down 0.01%. The Russell 2000 lost 0.50%, and the Wilshire 5000 decreased 0.15%.

Investing
Mutual Fund and ETF Costs Continue Downward Trend
Morningstar’s Annual U.S. Fund Fee Study found the asset-weighted average expense ratio across U.S. open-end mutual funds and exchange-traded funds (ETFs) was 0.52% in 2017, an 8% decline from 2016. This 8% year-over-year decline is the largest recorded since Morningstar began tracking asset-weighted fees in 2000. Morningstar estimates that investors saved more than $4 billion in fund fees in 2017 by continuing to gravitate toward lower-cost funds. Read more >
Products, Deals and People
Retirement Industry People Moves
Goodwin adds partner to ERISA team; AllianzGI hires head of client business for North America; Ascensus acquires TPA firm; and more. Read more >
Small Talk

ON THIS DATE: In 1789, George Washington took office as the first elected U.S. president. In 1803, the U.S. purchased the Louisiana Territory from France for $15 million. In 1812, Louisiana was admitted as the 18th U.S. state. In 1900, Hawaii was organized as an official U.S. territory. In 1939, Lou Gehrig played his last game with the New York Yankees. In 1947, the name of Boulder Dam, in Nevada, was changed back to Hoover Dam. In 1952, Mr. Potato Head was the first toy to be advertised on network television. In 1964, the FCC ruled that all TV receivers should be equipped to receive both VHF and UHF channels. In 1968, U.S. Marines attacked a division of North Vietnamese in the village of Dai Do. In 1970, U.S. troops invaded Cambodia to disrupt North Vietnamese Army base areas. The announcement by U.S. President Richard Nixon led to widespread protests. In 2015, NASA’s Messenger spacecraft crashed into the surface of Mercury. The space probe sent back more than 270,000 pictures to Earth.

SURVEY SAYS RESPONSES: Last week, I asked NewsDash readers, “Are you planning a stay-cation or vacation this summer?” I also asked them to share their favorite vacation destination. Very few responding readers (2.6%) said they do not plan to take a summer vacation. Among those who plan to take a summer vacation, 7.7% will take a stay-cation, 10.3% will visit family or friends, 25.6% will go to a place where they can wind down, and 38.5% said they would do more than one of these. Asked to share their favorite vacation destination, Destin, Florida; Hawaii; Colorado; the beach; and the Outer Banks of North Carolina, were repeats. In reader comments about summer vacations, a couple suggested that a stay-cation is not really a vacation or an opportunity to unwind. Many readers said they like to vacation at other times than the summer, and some noted that weekend trips can also be fun and relaxing. Because I live in North Carolina, Editor’s Choice has to go to the reader who said: “During the summer, I love the local opportunities around town like Carolina beach music concerts and Carolina shag dancing, summer festivals, etc. It gives you a time to wind down and relax on a weekday evening or weekend event that just makes the pressure and stress of the week easier to deal with.” Thanks to all who participated in the survey! Read more >
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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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