Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
December 13th, 2017
Benefits & Administration
Facing Regret, Employees Value Retirement Savings Help From Employers
Perhaps since the first five years of their working lives is the time period respondents to an American Century survey have the most regret about saving for retirement, they find automatic retirement plan features important. When asked if the company they worked for should offer automatic features, the vast majority agree. Read more >
Fewer People Rely on Employer as a Source of Investment Advice
“Employer” is the eighth most important source of investment advice and information in 2017, cited as a primary, usual or occasional source by 46% of households nationally, according to a report from Hearts & Wallets. Employer is the primary source for only 27% of households. All types of financial professionals as a group grew as a source of information and advice overall. According to the survey, more than half of U.S. households now uses online sources of investment information and advice. Read more >
Investors Agree Guaranteed Income in Retirement Is Important
Nearly all non-retired investors (98%) “strongly agree” or “somewhat agree” that “it is important to have a guaranteed income stream in retirement, in addition to Social Security,” according to the Wells Fargo/Gallup Investor and Retirement Optimism Index. But, investors are unsure about what products are available to provide them with a guaranteed income throughout retirement and about how much money they would need to structure various levels of income for various amounts of time. Read more >
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Products, Deals and People
T. Rowe Price Introduces Tool to Help With Financial Wellness
T. Rowe Price announced the integration of an online cash flow management tool, DoubleNet Pay, into the company’s full-service defined contribution (DC) plan participant program. Participants who enroll in the service can manage their income by establishing deductions from their bank account to apply toward emergency savings, bill payments, and debt management. Read more >
Economic Events

The Producer Price Index for final demand increased 0.4% in November, as prices for final demand goods increased 1.0% and the index for final demand services climbed 0.2%, according to the Bureau of Labor Statistics. The final demand index rose 3.1% for the 12 months ended in November.

Market Mirror

Tuesday, the Dow gained 118.77 points (0.49%) to finish at 24,504.80, the NASDAQ decreased 12.76 points (0.19%) to 6,862.32, and the S&P 500 was up 4.12 points (0.15%) at 2,664.11. The Russell 2000 was down 3.72 points (0.24%) at 1,516.12, and the Wilshire 5000 increased 25.55 points (0.09%) to 27,619.84.

 

The price of the 10-year Treasury note was down 3/32, increasing its yield to 2.404%. The price of the 30-year Treasury bond was up 3/32, decreasing its yield to 2.774%.

Sponsored message from Aviva Investors
Will US tax reform create a tailwind for credit?
A dramatic shift in US tax policy is on the horizon, and some key provisions could affect credit markets. Aviva Investors discusses how borrowers and investors may react, and where interest rate spreads could go from here. Read more >
Ask the Experts
Can Plan Compensation Definition Include Housing Allowance?
“I work for a denominational church entity where ministers can exclude a portion of their compensation from taxable income as parsonage (housing) allowance. Can our 403(b) plan’s definition of compensation include housing allowance, even though it is not taxable income to the minister? If so, are there any other restrictions/limitations that would affect our ability to make an employer contribution on compensation designated as housing allowance?” Read more >
Investing
MetLife Finds Move Away From Money Market Funds in DC Plans
One year after the U.S. Securities and Exchange Commission’s (SEC)’s money market fund (MMF) reform rules went into effect, there has been meaningful movement away from money market funds as a capital preservation option in defined contribution (DC) plans, with just over half of plan sponsors now offering money market as a capital preservation option (52%), down from 62% in 2015, according to MetLife’s 2017 Stable Value Study. Read more >
Small Talk
In a survey from staffing firm OfficeTeam, senior managers were asked to recount their most embarrassing moments at work. “I screamed because a coworker put a spider on me” and “I swore after a phone call without realizing the person was still on the line” were among the responses. Read more >

ON THIS DATE: In 1577, five ships under the command of Sir Francis Drake left Plymouth, England, to embark on Drake’s circumnavigation of the globe. The journey took almost three years. In 1636, the United States National Guard was created when militia regiments were organized by the General Court of the Massachusetts Bay Colony. In 1769, Dartmouth College, in New Hampshire, received its charter. In 1862, in America, an estimated 11,000 Northern soldiers were killed or wounded when Union forces were defeated by Confederates under General Robert E. Lee at the Battle of Fredericksburg. In 1913, the U.S. Federal Reserve System was established. In 1921, Britain, France, Japan and the United States signed the Pacific Treaty. In 1944, during World War II, the U.S. cruiser Nashville was badly damaged in a Japanese kamikaze suicide attack; 138 people were killed. In 1964, in El Paso, Texas, President Lyndon Johnson and Mexican President Gustavo Diaz Ordaz set off an explosion that diverted the Rio Grande River, reshaping the U.S.-Mexican border. This ended a century-old border dispute. In 1966, the rights to the first four Super Bowls were sold to CBS and NBC for total of $9.5 million. In 1991, North Korea and South Korea signed an historic non-aggression agreement. In 1998, Gary Anderson (Minnesota Vikings) kicked six field goals against Baltimore. In the game, Anderson set a National Football League (NFL) record for 34 straight field goals without a miss. In 2000, U.S. Vice President Al Gore conceded the 2000 Presidential election to Texas Governor George W. Bush. In 2001, U.S. President George W. Bush served formal notice to Russia that the United States was withdrawing from the 1972 Anti-Ballistic Missile Treaty.

 

 

WEDNESDAY WISDOM: “No snowflake in an avalanche ever feels responsible.”—Stanislaw Jerzy Lec, Polish poet

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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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