Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
June 1st, 2018
Benefits & Administration
Generations Share Financial Advice With Recent Grads
StreetWise, the E*TRADE quarterly tracking study of experienced investors, found 72% of survey respondents overall would advise recent graduates to take advantage of employer 401(k) plans. And 64% overall would advise them to start a portfolio, no matter how small. These were also the top two pieces of advice from Millennials (58% and 59%, respectively), while Generation X and Baby Boomers rated taking advantage of employer 401(k) plans and spending less than they make the highest—77% and 66%, respectively for Gen X, and 86% and 81%, respectively for Boomers. E*TRADE says the study suggests Millennials are more focused on investing for retirement than many think. Gifts Millennials would give also indicate that generation understands the financial issues facing recent graduates. Read more >
From the Magazine
Insights: Symbiotic Relationships
For plan sponsors that are passionate about retirement saving outcomes but don’t have the money to increase contributions, there is an opening for innovation. Read more >
Products, Deals and People
Investment Products and Services Launches
MassMutual introduces new TDFs, and Krane Funds Advisors creates CIT for retirement plans. Read more >
MOST READ ARTICLES
1
Retirement Industry People Moves
2
PSNC 2018: A Shift in Educating Participants—What Is Financial Wellness?
3
A Little Friday File Fun
4
PSNC 2018: The Importance of Educating Investment Committees
5
PSNC 2018: Retirement Industry Leaders Discuss Top Trends
Economic Events

In the week ending May 26, the advance figure for seasonally adjusted initial claims for unemployment insurance was 221,000, a decrease of 13,000 from the previous week’s unrevised level of 234,000, the Labor Department reported. The four-week moving average was 222,250, an increase of 2,500 from the previous week’s unrevised average of 219,750.

 

The average interest rate for a 30-year fixed-rate mortgage is 4.56%, down from 4.66% one week ago, according to Freddie Mac. The average interest rate for a 15-year fixed-rate mortgage is 4.06%, down from 4.15%.

Sponsored message from Natixis
Good news for plans with purpose
82% of plan participants would like their investments to reflect their personal values. Now they can with Natixis Sustainable Future Funds the industry’s first ESG-driven target date mutual funds. Join the movement. 2119028.1.1 Read more >
Market Mirror

Thursday, the Dow fell 251.94 points (1.02%) to 24,415.84, the NASDAQ closed 20.34 points (0.27%) lower at 7,442.12, and the S&P 500 decreased 18.74 points (0.69%) to 2,705.27. The Russell 2000 was down 14.38 points (0.87%) at 1,633.61, and the Wilshire 5000 lost 196.31 points (0.69%) to finish at 28,218.46.

 

The price of the 10-year Treasury note was down 1/32, increasing its yield to 2.860%. The price of the 30-year Treasury bond was up 2/32, decreasing its yield to 3.025%.

Compliance
Compensation and Benefit Limits Affected by Short Plan Year
If a short plan year is created when a plan is amended, terminates or is newly adopted, proration of the Internal Revenue Code annual compensation dollar limit and limit on defined contribution (DC) plan additions will be needed. Read more >
Non-Electing Church Plans Subject to Some Pre-ERISA Requirements
Non-electing church plans are exempt from the Employee Retirement Income Security Act (ERISA) provisions pertaining to participation, coverage, and vesting; however, these plans are subject to the requirements for participation, coverage and vesting that were in effect on September 1, 1974, prior to the enactment of ERISA. Read more >
Small Talk

ON THIS DATE: In 1792, Kentucky became the 15th state of the U.S. In 1796, Tennessee became the 16th state of the U.S. In 1861, the first skirmish of the U.S. Civil War took place at the Fairfax Court House, Virginia. In 1869, Thomas Edison received a patent for his electric voting machine. In 1892, the General Electric Company (GE) began operations after the merging of the Edison General Electric and the Thomson-Houston Electric companies. In 1916, the National Defense Act increased the strength of the U.S. National Guard by 450,000 men. In 1961, radio listeners in New York, California, and Illinois were introduced to FM multiplex stereo broadcasting. A year later the FCC made this a standard. In 1980, Cable News Network (CNN) made its debut as the first all-news station. In 1999, Merrill Lynch chairman David Komansky announced that the firm would soon allow its customers to buy and sell stocks over the Internet. In 2008, the Phoenix Mars Lander became the first NASA spacecraft to scoop Martian soil. In 2009, General Motors filed for Chapter 11 Bankruptcy. The filing made GM the largest U.S. industrial company to enter bankruptcy protection.

 

 

And now it’s time for FRIDAY FILES!

Roundabouts can be tricky for some drivers. Read more >
In Sydney, Australia, a hotel valet escaped a crash, but the luxury car he was trying to park didn’t. According to the Associated Press, the valet drove the soft-top Porsche Carrera under another vehicle outside the Hyatt Regency Hotel. Emergency workers cut the driver out from the Porsche. The larger vehicle was propped up and its wheels were anchored while the vehicles were separated. The black Porsche, its hood and front bumper crunched and dented, was then backed onto a tow truck. [pic] Read more >

In Portland, Oregon, a couple discovered their Amazon Alexa device recorded a private conversation in their home and then sent it to a random person on their contact list. When the wife called Amazon, the company investigated and found it to be true. Amazon told CNET.com, “Echo woke up due to a word in background conversation sounding like ‘Alexa.’ Then, the subsequent conversation was heard as a ‘send message’ request. At which point, Alexa said out loud ‘To whom?’ At which point, the background conversation was interpreted as a name in the customers contact list. Alexa then asked out loud, ‘[contact name], right?’ Alexa then interpreted background conversation as ‘right.’ As unlikely as this string of events is, we are evaluating options to make this case even less likely.”

 

In Camillus, New York, a 30-year-old man was ordered by a State Supreme Court Justice to move out of his parents’ house after living there rent free for eight years, the Syracuse Post-Standard reports. The man’s parents sent him numerous eviction notices and even gave him $1,100 to help him find a new place, WSTM, a local news channel, reports. However, while in court, the man refused to directly speak to his parents and argued with the Justice for a half an hour that he was entitled to an additional six months before eviction, citing a legal case he found on the internet that appeared to back his claim. The justice reportedly praised the man’s legal argument but sided with his parents and ordered him to move out, calling his demand for six more months “outrageous.” The man fired back, calling the judge’s order “outrageous.” He plans to appeal the decision. “I’m not bothering them by living here,” the man said in an interview with Good Morning America. “It’s little to no cost to them, and considering how much they’ve harassed me, I think it’s the least that they should be required to do, which is just let me hang here a bit longer and use their hot water and electricity.”

 

In Park City, Utah, a couple ran into a different sort of hazard during a round of golf on Memorial Day. A young moose bigger than their golf cart chased them off the links at the Park City Golf Club. The husband told the Deseret News he was getting ready to hit a shot when his wife started yelling. They jumped in the cart and made an escape as the animal headed off to a nearby pond. He says the animal wasn’t super aggressive, but it was “gigantic” so they didn’t hang around.

 

Have a great weekend!

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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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