|
January 6th, 2021
Insight on Plan Design & Investment Strategy Every Weekday
|
|
|
Investing
|
|
Rethinking the 60/40 Portfolio
|
 |
Defined benefit and defined contribution plan sponsors need to adjust the composition of the traditional 60/40 portfolio to meet plan and participant goals, experts say. 
|
|
|
Plan Sponsor of the Year Awards
|
|
Only One Week Left!!
|
|
Nominations for the 2021 Plan Sponsor of the Year awards have been open for a month, and the deadline for entries in January 13.
|
|
|
|
|
|
|
| Market Mirror |
Tuesday, the Dow was up 167.71 points (0.55%) at 30,391.60, the NASDAQ gained 120.51 points (0.95%) to finish at 12,818.96, and the S&P 500 increased 26.21 points (0.71%) to 3,726.86. The Russell 2000 climbed 33.19 points (1.71%) to 1,979.11, and the Wilshire 5000 closed 326.04 points (0.84%) higher at 39,218.13.
The price of the 10-year Treasury note was down 3/32, increasing its yield to 0.951%. The price of the 30-year Treasury bond decreased 32/32, bringing its yield up to 1.700%.
|
|
|
|
Ask the Experts
|
|
QNEC for a Prior Year and the 415 Limit
|
|
“We made a qualified nonelective contribution (QNEC) in 2020 to correct a missed 403(b) deferral opportunity for one of our employees in 2019. Is the QNEC considered to be a 2019 or a 2020 contribution for 415 limit purposes? Also, since we are making up for a missed elective deferral opportunity, does the QNEC count toward the 402(g) elective deferral limit?”
|
|
|
|
|
UpFront
|
|
Retirees in Name Only
|
|
The factors that are redefining ‘retirement’—what these mean for workers near the end of their full-time-employment years.
|
|
|
|
ON THIS DATE: In 1838, Samuel Morse’s telegraph system was demonstrated for the first time at the Speedwell Iron Works in Morristown, New Jersey. In 1912, New Mexico was admitted into the United States as the 47th state. In 1919, Theodore Roosevelt, the 26th president of the United States, died at Sagamore Hill, his estate overlooking New York’s Long Island Sound. In 1945, the Battle of the Bulge ended with 130,000 German and 77,000 Allied casualties. In 1952, the “Peanuts” comic strip debuted in Sunday papers across the United States. In 1963, “Wild Kingdom” premiered on NBC. In 1999, Bob Newhart received a star on the Hollywood Walk of Fame.
|
|
|
|
|
WEDNESDAY WISDOM: “To begin, begin.”—William Wordsworth, poet
|
|
|
| Industry Intel Roundup—Featured Webcasts | | PLANSPONSOR is pleased to present the next edition of our Industry Intelligence roundup. This week, we are featuring webcasts sponsored by experienced providers in the industry. The content was created to educate, inform and offer ideas for plan sponsors regarding plan design, investing, administration and compliance. |  | | PLANSPONSOR 2021 Plan Progress Series: Lessons From Litigation | | There is no shortage of litigation filed against retirement plan sponsors. It seems that most lawsuits focus on plan administration and investment fees, but a variety of other charges have been filed. While plan sponsors’ first priority is the best interest of participants and not how to avoid legislation, no one wants to be sued. With a large number of cases resulting in settlements, the courts haven’t offered much input on the issues, but there are still lessons to be learned. |
|
|  | | Are your glide paths diversified enough for today’s evolving markets? | | As plan participants head toward retirement, a target-date fund’s stock allocation decreases while its exposure to bonds goes up. But this is only part of the story for glide paths. With ever-changing markets, sub-asset classes and alternatives can help reduce correlations and thus mitigate exposure to broad market drawdowns. Come hear about the importance of a diversified glide path and how today’s macroeconomic events are changing the investing landscape and creating the need for glide paths with broader asset allocation. |
|
| | | PLANSPONSOR 2021 Plan Progress Series: Evaluating Guaranteed Income Products | | The Setting Every Community Up for Retirement Enhancement (SECURE) Act provided a fiduciary safe harbor for selecting an insurer/vendor of guaranteed retirement income contracts and addressed the portability issue for offering in-plan guaranteed income products by permitting participants to transfer annuities no longer authorized to be held as investment options under a defined contribution (DC) plan. Still, plan sponsors might not understand product choices or how to address the huge need for participants to have guaranteed retirement income through DC plan design. |
|
|  | | SPONSORED BY: TIAA | | A Diversified Income Strategy: Why It’s Important For Your Employees | | This webcast discusses the importance of income diversification and how to incorporate into retirement income strategies. It highlights the four key retirement risks and lifetime income sources that can help fortify a diversified retirement income strategy for participants. We will present insights from our latest 2020 Retirement Insights Survey along with research from Morningstar to show how “income diversification” on average can provide retirees with 20% more certainty-equivalent income in retirement. These insights strongly suggest that in-plan annuities should be considered as part of a retirement income strategy. |
|
|  | | Redefining financial well-being: What employees need most in a post-pandemic world | | The pandemic didn’t cause America’s retirement crisis—but it did shine a spotlight on some of its deepest cracks. Chief among them: the precariousness of people’s short- and long-term financial security.
As we start to envision a post-COVID world, all eyes are on recovery. For employers, this is prompting a shift in focus from immediate, relief-oriented benefits to ones that address barriers to holistic financial well-being.
This panel will explore:
Two key barriers—emergency savings and retirement spending.
Steps employers can take now to bolster their employees’ outcomes of tomorrow.
Now is the time to redefine financial well-being to align with what employees will need most in a post-pandemic world. |
|
|
Did someone forward you this newsletter? Sign up here to get NEWSDash directly in
your mailbox!
|
|
|
|
|
©2021 Asset International Inc. All rights reserved.
702 King Farm Boulevard, Suite 400, Rockville, MD 20850
|
|
