Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
June 13th, 2018
Benefits & Administration
Crowd Funded 529 Plans Show Promise for Employees
In March 2017, Franklin Templeton Investments announced the launch of a crowdfunding tool called “Spryng,” designed for use by NJBEST and Franklin Templeton 529 College Savings Plan account holders. Pronounced “spring,” the tool was developed to “harness the power of crowdfunding and social media, by creating a secure and convenient method to engage family and friends in saving for future higher education expenses.” At the time, Roger Michaud, director of college savings for Franklin Templeton Investments, highlighted the importance of starting the college savings effort early, investing regularly and asking family and friends for help along the way. Read more >
When Saving More Harms Workers’ Financial Future
In the defined contribution (DC) retirement plan industry, it is simply taken for granted that everyone should be saving more and that everyone should save as much as they possibly can. Commentator Andrew Biggs offers some important caveats to the seemingly sensible recommendation. Read more >
Ask the Experts
Roth Accounts and Participant Post-Retirement Benefits
“I have heard that a Roth 403(b) can actually help participants maximize their after-tax retirement benefit. If this is true, can the Experts assist me with the math as to why?” Read more >
MOST READ ARTICLES
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Retirement Industry People Moves
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PSNC 2018: A Shift in Educating Participants—What Is Financial Wellness?
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A Little Friday File Fun
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PSNC 2018: The Importance of Educating Investment Committees
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PSNC 2018: Retirement Industry Leaders Discuss Top Trends
Economic Events

In May, the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2% seasonally adjusted (SA); rising 2.8% over the last 12 months, not seasonally adjusted (NSA), the Bureau of Labor Statistics reported. The index for all items less food and energy rose 0.2% in May SA; up 2.2% over the year NSA.

 

Real average hourly earnings increased 0.1% in May, SA. Average hourly earnings increased 0.3%, and CPI-U increased 0.2%. Real average weekly earnings increased 0.1% over the month.

Sponsored message from Vanguard
The Markets Became Volatile-What Will Your Participants Do About It?
Target-date funds can protect participants from impulsive reactions to market volatility. Read more >
Market Mirror

Yesterday, the Dow was down 1.58 points (0.01%) at 25,320.73, the NASDAQ increased 43.87 points (0.57%) to 7,703.79, and the S&P 500 inched 4.85 points (0.17%) higher, finishing at 2,786.85. The Russell 2000 was up 7.62 points (0.46%) at 1,682.30, and the Wilshire 5000 closed 71.39 points (0.25%) higher at 29,098.02.

 

The price of the 10-year Treasury note was down 2/32, increasing its yield to 2.959%. The price of the 30-year Treasury bond decreased 1/32, bringing its yield up to 3.095%.

Compliance
Oregon Halts Move to Public DC Participant Investment Choice
A review found that a bill allowing employees who participate in the state’s Individual Account Plan to select their own investments would violate the state’s legal and fiduciary standards. Read more >
Investing
Custom Investments May Better Fit DC Participant Demographics
With defined contribution (DC) plans representing a growing share of U.S. workers’ retirement savings, plan sponsors may want to consider whether they should offer custom investment solutions in those plans, Vanguard says in a new white paper, “Considering Custom for Your DC Plan.” The paper discusses white label funds and custom target-date funds (TDFs). Vanguard believes it’s an important part of due diligence to consider custom options. Read more >
Vanguard Takes Own Funds Out of Its 401(k)
Vanguard has removed 12 funds from its 401(k) plan, including the popular S&P 500 fund, which charges a fee of a mere 0.02%. Alyssa Thornton, a Vanguard spokesperson, told PLANSPONSOR, “Like many companies, we conduct regular reviews of our employee 401(k) plan to ensure we are implementing leading plan design best practices. Read more >
Small Talk

ON THIS DATE: In 1825, Walter Hunt patented the safety pin. Hunt then then sold the rights for $400. In 1866, the 14th Amendment to the U.S. Constitution, designed to grant citizenship to and protect the civil liberties of recently freed slaves, was passed by Congress. In 1888, Congress created the Department of Labor. In 1951, U.N. troops seized Pyongyang, North Korea. In 1966, the landmark “Miranda v. Arizona” decision was issued by the U.S. Supreme Court. The decision ruled that criminal suspects had to be informed of their constitutional rights before being questioned by police. In 1967, Solicitor General Thurgood Marshall was nominated by President Lyndon B. Johnson to become the first black justice on the U.S. Supreme Court. In 1979, Sioux Indians were awarded $105 million in compensation for the U.S. seizure in 1877 of their Black Hills in South Dakota. In 1983, the unmanned U.S. space probe Pioneer 10 became the first spacecraft to leave the solar system. It provided the first up-close images of the planet Jupiter. In 1989, the Detroit Pistons won their first National Basketball Association title. They beat the L.A. Lakers in four games. In 1994, a jury in Anchorage, Alaska, found Exxon Corp. and Captain Joseph Hazelwood to be reckless in the Exxon Valdez oil spill.

 

 

WEDNESDAY WISDOM: “I put my heart and my soul into my work, and have lost my mind in the process.”—Vincent Van Gogh

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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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