| Ask the Experts | Difference Between Investment in Annuity and Annuity Distribution | “I have just been contacted be an employee who is retiring who wishes to initiate the process of ‘annuitizing’ her benefit when she retires. I am relatively new to working with our 403(b) plan and am confused, as our 403(b) plan only offers annuity investments. Isn’t an annuity automatic?”Read more > | | Market Mirror | Tuesday, the Dow climbed 372.65 points (1.49%) to 25,425.76, the NASDAQ closed 106.71 points (1.46%) higher at 7,414.62, and the S&P 500 increased 34.93 points (1.29%) to 2,744.73. The Russell 2000 was up 19.25 points (1.27%) at 1,538.23, and the Wilshire 5000 gained 358.56 points (1.28%) to finish at 28,462.48. The price of the 10-year Treasury note was down 7/32, increasing its yield to 2.681%. The price of the 30-year Treasury bond decreased 14/32, bringing its yield up to 3.015%. | | Compliance | Hearing Witnesses Offered Recommendations to Promote Retirement Savings | Recommendations included conducting a comprehensive review of the American retirement system, educating small employers about plan options, allowing for open multiple employer plans (MEPs), changing certain defined contribution (DC) plan rules to facilitate greater savings, and increasing financial and retirement education, especially for women.Read more > | | From the Magazine | Is Your QDIA Still a Good Fit? | The Pension Protection Act of 2006 (PPA), which amended the Employee Retirement Income Security Act (ERISA), provides a safe harbor for plan sponsor fiduciaries that invest participant assets in qualified default investment alternatives (QDIAs) in the absence of participant investment direction. According to the 2018 PLANSPONSOR Defined Contribution (DC) Survey, most defined contribution plan sponsors (73.3%) have chosen a target-date fund (TDF) series as the QDIA, but balanced funds and professionally managed accounts are also explicitly acknowledged in the regulations. As with any investment in a defined contribution plan’s lineup, the QDIA must be regularly monitored and, if necessary, changed.Read more > | | Small Talk | New data from Global Atlantic Financial Group’s Retirement Spending Study shows that retirees who are married or living with a significant other have fewer financial regrets than those who are single. They also report more diverse sources of income and fewer cut backs on discretionary spending.Read more > | ON THIS DATE: In 1741, “The American Magazine,” the first magazine in the U.S., was published in Philadelphia, Pennsylvania. In 1889, Norman Coleman became the first U.S. Secretary of Agriculture. In 1914, the American Society of Composers, Authors and Publishers (known as ASCAP) was formed in New York City. The society was founded to protect the copyrighted musical compositions of its members. In 1935, in Flemington, New Jersey, a jury found Bruno Richard Hauptmann guilty of the kidnapping and death of the infant son of Charles and Anne Lindbergh. Hauptmann was later executed for the crimes. In 1945, during World War II, Allied aircraft began bombing the German city of Dresden. In 1965, 16-year-old Peggy Fleming won the ladies senior figure skating title at Lake Placid, New York. In 1971, South Vietnamese troops invaded Laos, backed by U.S. air and artillery support. In 1990, in Ottawa, the United States and its European allies forged an agreement with the Soviet Union and East Germany on a two-stage formula to reunite Germany. In 2000, Charles M. Schulz’s last original Sunday “Peanuts” comic strip appeared in newspapers. Schulz had died the day before. In 2002, former New York mayor Rudolph Giuliani received an honorary knighthood from Queen Elizabeth II. WEDNESDAY WISDOM: “Treasure the love you receive above all. It will survive long after your good health has vanished.”—Og Mandino, American author | 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 > |
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