Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
August 24th, 2018
Benefits & Administration
Gen X and Gen Y Making Sacrifices to Save More for Retirement
Many Gen Xers and Gen Yers deferred 90% or more of the Internal Revenue Service (IRS) maximum allowance for contributions to their retirement accounts, according to research by Principal Financial Group, and they are sacrificing other expenses to do so. Read more >
Missing Retirement Plan Participants Fare Better Than Those Who Cash Out
Despite intense Department of Labor (DOL) activity surrounding missing retirement plan participants, at least those participants’ retirement savings are preserved, say executives at Retirement Clearinghouse. And, focusing on a solution to retirement plan cashouts may actually help plan sponsors find missing participants. Read more >
Products, Deals and People
Alight Announces Solutions Aimed to Reduce Employee Health Care Costs
The new solutions help employees find highly rated and cost-effective providers, guide them to the right programs and help them find lower cost prescriptions, which can reduce cost for themselves and their employers. Read more >
Vanguard Offers Commission-Free ETFs
The launch will allow Vanguard Brokerage clients to access the vast majority of exchange-traded funds (ETFs), from providers including BlackRock, Schwab, and State Street Global Advisors (SSGA), without incurring additional costs to purchase or sell. Read more >
MOST READ ARTICLES
1
AT&T Sued Over Calculation of Early Retirement Benefits
2
Congressional Leaders Want SECURE Act Passage in 2019
3
Social Security Administration Announced COLA for 2020
4
New Lawsuit Highlights Importance of Cybersecurity for Retirement Plans
5
IRS Releases 2019-2020 Priority Guidance Plan
Economic Events

Sales of new single-family houses in July were at a seasonally adjusted annual rate of 627,000, according to estimates released jointly by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 1.7% below the revised June rate of 638,000, but is 12.8% above the July 2017 estimate of 556,000.

In the week ending August 18, the advance figure for seasonally adjusted initial claims was 210,000, a decrease of 2,000 from the previous week’s unrevised level of 212,000, the Labor Department reported. The four-week moving average was 213,750, a decrease of 1,750 from the previous week’s unrevised average of 215,500.

The average interest rate for a 30-year fixed-rate mortgage is 4.51%, down from 4.53% one week ago, according to Freddie Mac. The average interest rate for a 15-year fixed-rate mortgage is 3.98%, down from 4.01%.

Sponsored message from JP Morgan
Are you getting the best 401(k) solution? 99% of plan sponsors are satisfied with J.P. Morgan Retirement Link’s Relationship Managers. Leverage our team with an average of 25 years’ experience to build stronger retirement plans with a provider recognized for best-in-class service. Start building stronger plans.  Read more >
Market Mirror

Thursday, the Dow lost 76.62 points (0.30%) to finish at 25,656.98, the NASDAQ was down 10.64 points (0.13%) at 7,878.46, and the S&P 500 decreased 4.84 points (0.17%) to 2,856.98. The Russell 2000 shed 5.49 points (0.32%) to close at 1,717.05, and the Wilshire 5000 closed 58.98 points (0.20%) lower at 29,830.98.

The price of the 10-year Treasury note down 1/32, increasing its yield to 2.824%. The price of the 30-year Treasury bond was up 4/32, decreasing its yield to 2.978%.

Investing
Interest Rates’ Effects on Fixed Income Vehicles
An Insights article from Cammack Retirement notes how different fixed income vehicles perform under a rising interest rate environment and suggests defined contribution (DC) plan sponsors offer a diverse menu of options for participants. Read more >
Small Talk

ON THIS DATE: In 0079, Mount Vesuvius erupted killing approximately 20,000 people. The cities of Pompeii, Stabiae and Herculaneum were buried in volcanic ash. In 0410, the Visigoths overran Rome. This event symbolized the fall of the Western Roman Empire. In 1456, the printing of the Gutenberg Bible was completed. In 1814, Washington, D.C., was invaded by British forces that set fire to the White House and Capitol. In 1869, a patent for the waffle iron was received by Cornelius Swarthout. In 1932, Amelia Earhart became the first woman to fly across the U.S. non-stop. The trip from Los Angeles to Newark took about 19 hours. In 1949, the North Atlantic Treaty Organization (NATO) went into effect. The agreement was that an attack against on one of the parties would be considered “an attack against them all.” In 1959, three days after Hawaiian statehood, Hiram L. Fong was sworn in as the first Chinese-American U.S. senator while Daniel K. Inouye was sworn in as the first Japanese-American U.S. representative. In 1989, Pete Rose, the manager of the Cincinnati Reds, was banned from baseball for life after being accused of gambling on baseball. In 1989, the U.S. space probe, Voyager 2, sent back photographs of Neptune. In 2001, the remains of nine American servicemen killed in the Korean War were returned to the U.S. The bodies were found about 60 miles north of Pyongyang. In 2006, the planet Pluto was reclassified as a “dwarf planet” by the International Astronomical Union (IAU). Pluto’s status was changed due to the IAU’s new rules for an object qualifying as a planet. Pluto met two of the three rules because it orbits the sun and is large enough to assume a nearly round shape. However, since Pluto has an oblong orbit and overlaps the orbit of Neptune it disqualified Pluto as a planet.

And now it’s time for FRIDAY FILES!

This baby is starting an early track to becoming wealthy. Read more >
Can you do the ‘invisible box’ challenge? Read more >
After President Trump’s first year in office, Jimmy Kimmel asked children how the president was doing. Read more >

In Great Britain, according to the British Medical Journal Case Reports, a woman went to the doctor after a pea-sized lump developed below her left eyebrow. A cyst was visible on an MRI. When doctors went in to remove the cyst, they discovered a rigid contact lens that somehow migrated into the eyelid, according to USA Today. At first, the woman couldn’t recall how the contact lens got stuck in her eyelid. Then her mom remembered the patient losing a lens during a badminton game when she was just 14. Since the woman had no symptoms at that time, she figured the lens had simply fallen out and gone missing.

In Hamden, Connecticut, police received several calls from angry motorists about what were described as high-performance, racing-type cars slowing traffic to a crawl. Police say the lead car was filming the other cars, which were blocking both lanes of the highway so no other vehicles could pass. All 10 vehicles were pulled over and the drivers were issued infractions.

In Waterville, Maine, the Kennebec Journal reported that Bolley’s Famous Franks faced threats of violence when it changed from crinkle-cut to straight-cut fries in June. Co-owner Leslie Parsons says the change was a financial decision because crinkle-cut fries required special blades that needed to be bought monthly. She says many people felt as new owners they were changing tradition at Bolley’s, which had served crinkle-cut fries since it opened in 1962.

In Tbilisi in the country of Georgia, an 18-year-old student solved six Rubik’s Cubes under water in one breath, in a bid to set a new Guinness World Record, which he did. Vako Marchelashvili was submerged in a glass tank for just over one minute and 44 seconds as he flipped, turned and solved the cubes in front of a crowd at the Gino Paradise aqua park.

In Waterbury, Connecticut, members of the Mount Olive AME Zion Church came to church last Sunday to discover $3,000-worth of electronics stolen. However, they also found something else. Members of the congregation tell WVIT-TV the thief left a note that said “Pray 4 Me!! Sorry brothers. Save me,” and drew a little sad face. Some members did pray for the thief at a later service.

 

Hope everyone has a wonderful weekend!

Share the 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: advertise@strategic-i.com

Subscribe to NEWSDash, click here .

To unsubscribe, click here.

BrightScope / CIO / FWW / Investor Economics / LiquidMetrix / Market Metrics / Matrix Solutions / PLANADVISER / Plan For Life / PLANSPONSOR / Simfund