Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
February 8th, 2018
2018 PLANSPONSOR Service Stars
PLANSPONSOR is pleased to announce the 2018 winners of its Service Star award program, recognizing retirement plan account reps and relationship managers who have, based on descriptions provided by plan sponsor clients, demonstrated exemplary service over the past year. Read more >
Benefits & Administration
Fidelity Finds Increase in Retirement Plan Millionaires
Increasing contributions and a strong stock market drove both the average 401(k) and individual retirement account (IRA) balance in Fidelity’s book of business over six figures at the end of 2017. The data shows nearly one-third of 401(k) savers increased their savings rate in 2017, driving the average deferral to 8.6% in Q4 2017, an increase from 8.4% a year ago. The number of 401(k) savers with at least $1 million in their 401(k) increased to 150,000 at the end of 2017, up from 93,000 a year ago. The number of investors with $1 million in their IRA account rose to 152,000, an increase from 109,000 at the end of 2016. Read more >
Planning to Retire Later Doesn’t Reflect Reality
Studies show that many employees expect to retire later as part of their plan to have more income in retirement. However, a study from Prudential finds 51% of retirees retired earlier than planned. Among those, only 23% retired earlier than planned because they either had enough money to retire, wanted to retire, or were tired of working. Forty-six percent of those who retired earlier than expected did so due to health problems, 30% were laid off from their jobs or offered an early retirement incentive package, and 11% left work to take care of a loved one. While Prudential found pre-retirees seem well-aware of risk factors that could force them to retire earlier, study results show they could benefit from a financial plan. Read more >
MOST READ ARTICLES
1
J.P. Morgan Agrees to Settle Stable Value Funds Suit
2
SECURE Act Passes House, Bringing Calls for Senate Collaboration
3
Individuals, Employers and Government All Play a Part in Retirement Readiness
4
Participant Loans: A Fiduciary Storm Brewing?
5
What to Know About Financial Audits Filed with Form 5500s
Products, Deals and People
MassMutual Allows Facial Recognition to Access Retirement Savings Information
Facial recognition is available to iPhone X users who download MassMutual’s RetireSMART mobile app. Read more >
Callan Names Replacement for DC Team Lead
Callan Associates announced Greg Ungerman will be assuming the role of lead of its Defined Contribution (DC) team. The announcement comes after the move of Lori Lucas, EVP and DC team lead, to president and CEO of the Employee Benefit Research Institute (EBRI). Read more >
Market Mirror

Wednesday, the Dow was down 19.42 points (0.08%) at 24,893.35, the NASDAQ lost 63.90 points (0.90%) to finish at 7,051.98, and the S&P 500 closed 13.48 points (0.50%) lower at 2,681.66. The Russell 2000 was virtually unchanged at 1,507.97, and the Wilshire 5000 decreased 105.99 points (0.38%) to 27,824.86.

 

The price of the 10-year Treasury note was down 8/32, increasing its yield to 2.833%. The price of the 30-year Treasury bond decreased 23/32, bringing its yield up to 3.105%.

Investing
Market Volatility a Good Time to Remind Participants About the Fundamentals
John Diehl, senior vice president of strategic markets for Hartford Funds, tells PLANSPONSOR during focused bouts of market volatility, of the sort witnessed in the equity markets this week, there is an opportunity for plan sponsors to reiterate the fundamentals that retirement plan participants should regularly be focusing on. Yet the data from the Alight Solutions 401(k) Index already shows participants are reacting poorly to this latest round of stock market volatility, with trading activity described by researchers as “exceptionally high over recent days.” Diehl says it makes a lot of sense for plan sponsors to be keeping positive numbers, such as those reported about the Northern Trust Universe fresh in their minds as they contemplate the ongoing equity market swings. In addition, Doug Peebles, fixed income chief investment officer for AB, offers PLANSPONSOR the latest on the fixed-income picture against the background of greater equity market uncertainty. Read more >
Small Talk

ON THIS DATE: In 1693, a charter was granted for the College of William and Mary in Williamsburg, Virginia. In 1861, the Confederate States of America was formed. In 1896, the Western Conference was formed by representatives of Midwestern universities. The group changed its name to the Big 10 Conference. In 1910, William D. Boyce incorporated the Boy Scouts of America. In 1918, during World War I, “The Stars and Stripes” was published under orders from General John J. Pershing for the United States Army forces in France. It was published from February 8, 1918, to June 13, 1919. In 1936, the first National Football League draft was held. In 1952, Queen Elizabeth II ascended to the British throne following her father’s death on February 6. In 1963, the Kennedy administration prohibited travel to Cuba and made financial and commercial transactions with Cuba illegal for U.S. citizens. In 1963, Lamar Hunt, owner of the American Football League franchise in Dallas, moved the operation to Kansas City. The new team was named the Chiefs. In 1971, the Nasdaq stock-market index debuted. In 1985, “The Dukes of Hazzard” ended its 6-1/2 year run on CBS television.

SURVEY SAYS: During the Super Bowl advertisers try to kick up the quality and/or humor of their ads. This week, I’d like to know, which Super Bowl 52 commercial was your FAVORITE? You may respond to this week’s survey by 6 p.m. Pacific time today. Read more >
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: Paul Zampitella paul.zampitella@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