Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
August 28th, 2018
Benefits & Administration
401(k) Participants With Loans Save Less Than Those Without
Twenty-five percent of 401(k) participants have an outstanding loan against their account, according to Alight Solutions. Three-quarters of employers are worried about the level of participant loans in their 401(k) plan. Alight Solutions found a nearly $100,000 difference in 401(k) savings between participants who had loans outstanding and those who did not. Read more >
Unpredictable Retirement Age Calls for New Planning
Researchers are increasingly finding that people underestimate the age they will—or will need to—retire. Delaying retirement can have a significantly positive effect on the probability of an investor achieving retirement success; however, Morningstar found the uncertainty around retiring earlier than expected results in much lower probabilities of success for people planning to retire after age 61. Morningstar suggests individuals and their advisers must incorporate retirement age uncertainty in their retirement planning by focusing on saving. Read more >
ICI Finds Patterns in Retirement Plan Participant Loan Activity
Following the recession of 2008/2009 defined contribution (DC) plan participant loan activity went from a low of 15.3% of participants with an outstanding loan in 2008, when the Investment Company Institute (ICI) first started its survey of DC plan recordkeepers, to a high of 18.5% of participants with an outstanding loan in 2011. Since then, loan activity has edged down, reaching 16.4% of DC plan participants with an outstanding loan in the first quarter of 2018. ICI finds that two factors appear to influence DC plan participants’ loan activity: reaction to financial stresses and a seasonal pattern. Read more >
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Majority of 401(k) Participants Would Like Online or Financial Professional Help
They want help with calculating how much money to save for retirement, determining how to invest their 401(k) assets, determining the age at which they can retire, and figuring out their expenses in retirement. Read more >
Market Mirror

Yesterday, the Dow climbed 259.29 points (1.01%) to 26,049.64, the NASDAQ closed 71.92 points (0.91%) higher at 8,017.90, and the S&P 500 increased 22.05 points (0.77%) to 2,896.74. The Russell 2000 was up 2.73 points (0.16%) at 1,728.41, and the Wilshire 5000 gained 207.71 points (0.69%) to finish at 30,222.43.

 

The yield for the 10-year Treasury note was 2.848%. The yield for the 30-year Treasury bond was 2.996%.

Sponsored message from Charles Schwab
Design retirement plans that fit your employees
Only 44% of participants feel comfortable making 401(k) decisions. Learn how you can help. Read more >
Investing
LIMRA Reports Strong Pension Buy-Out Activity in 2018
U.S. single premium pension buy-out sales surpassed $8.2 billion in the second quarter of 2018, more than doubling the sales totals in the second quarter of 2017, according to the LIMRA Secure Retirement Institute (LIMRA SRI) quarterly U.S. Group Annuity Risk Transfer Survey. LIMRA SRI projects the pension risk market to exceed $23 billion in 2018. Read more >
Small Talk

ON THIS DATE: In 1609, Delaware Bay was discovered by Henry Hudson. In 1619, Ferdinand II was elected Holy Roman Emperor. His policy of “One church, one king” was his way of trying to outlaw Protestantism. In 1774, the first American-born saint was born in New York City. Mother Elizabeth Ann Seton was canonized in 1975. In 1907, “American Messenger Company” was started by two teenagers, Jim Casey and Claude Ryan. The company’s name was later changed to “United Parcel Service.” In 1922, the first radio commercial aired on WEAF in New York City. The Queensboro Realty Company bought 10 minutes of time for $100. In 1939, the first successful flight of a jet-propelled airplane took place. The plane was a German Heinkel He 178. In 1963, Dr. Martin Luther King, Jr., gave his “I Have a Dream” speech at a civil rights rally in Washington, D.C. More than 200,000 people attended. In 1995, the biggest bank in the U.S. was created when Chase Manhattan and Chemical Bank announced their $10 billion deal. In 2004, George Brunstad, at age 70, became the oldest person to swim the English Channel. The swim from Dover, England, to Sangatte, France, took 15 hours and 59 minutes.

TRIVIAL PURSUITS: Who invented champagne? 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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