Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
June 19th, 2017
From the Magazine
DC Plan Q&A: Wellness Programs
As financial wellness be­comes a buzz-term, there is a lack of consensus on what such a program entails. To some employers, it means providing services to their workers so they can improve their financial situation. To others, it means helping employees adequately save for retirement. This article discusses some of the issues and considerations facing employers as they evaluate offering financial wellness programs as part of their overall benefits package. Read more >
Benefits & Administration
A Shift in Educating Participants—What Is Financial Wellness?
Experts say the subject of financial wellness has been constantly evolving and becoming more sophisticated. Read more >
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Products, Deals and People
Retirement Industry People Moves
Texas TRS CIO steps down; Heffernan Financial Services expands adviser team; Todd Organization hires partner for executive benefits consulting; and more. Read more >
HealthSavings Administrators, a health savings account (HSA) investment company, has launched InvestorSELECT HSA. The InvestorSELECT HSA offers first-dollar investing in nearly 400 available funds. Read more >
Sponsored message from Natixis
Retirement planning for a better world
62% of plan participants and 71% of millennials surveyed would contribute more to their 401(k) plan if it advanced social good. Now they can. Introducing the Natixis Sustainable Future Funds – the industry’s first ESG-driven target date funds. Join the movement. 1815044.1.1 Read more >
Economic Events

Privately-owned housing starts in May were at a seasonally adjusted annual rate of 1,092,000, the Census Bureau reported. This is 5.5% below the revised April estimate of 1,156,000.

THE ECONOMIC WEEK AHEAD: Wednesday, the National Association of Realtors will report about existing home sales for May. Thursday, the Labor Department will release its initial claims report. Friday, the Census Bureau will report about new home sales in May.

Market Mirror

Friday, the Dow closed 24.52 points (0.11%) higher at 21,384.42, the NASDAQ closed 13.74 points (0.22%) lower at 6,151.76, and the S&P 500 was virtually unchanged at 2,433.15. The Russell 2000 was down 3.34 points (0.24%) at 1,406.74, and the Wilshire 5000 decreased 14.91 points (0.06%) to 25,266.61.

The price of the 10-year Treasury note was up 4/32, decreasing its yield to 2.152%. the price of the 30-year Treasury bond increased 11/32, bringing its yield down to 2.774%.

WEEK’S WORTH: For the week ending June 16, the Dow increased 0.53%, the NASDAQ lost 0.90%, and the S&P 500 was up 0.06%. The Russell 2000 fell 1.05%, and the Wilshire 5000 was down 0.11%.

Compliance
One day after holding a hearing about how regulators and plan sponsors can help keep older workers in the workforce, the Equal Employment Opportunity Commission filed another age bias suit. The lawsuit charges that a 52-year old production foreman with years of industry experience was pushed out of his job at the hands of a new superintendent at Atlas Resource Partners, because he preferred younger workers. Read more >
Investing
Sponsors Use ESG to Incent Greater Savings
Natixis research sees “plenty of potential” to incorporate investment strategies that consider environmental, social and governance (ESG) criteria to incent younger investors to increase their participation in company-sponsored retirement plans. Read more >
Asset Managers Eyeing Smart Beta for Next Generation of TDFs
According to the latest report by Cerulli, “Asset managers incorporating strategic beta into their target-date series could find success by positioning their products as cost-effective strategies capable of reducing volatility and sequencing risk for retirement investors when markets decline.” Read more >
Small Talk

ON THIS DATE: In 1586, English colonists sailed away from Roanoke Island, North Carolina, after failing to establish England’s first permanent settlement in America. In 1778, U.S. General George Washington’s troops finally left Valley Forge after a winter of training. In 1846, the New York Knickerbocker Club played the New York Club in the first baseball game at the Elysian Field, Hoboken, New Jersey. It was the first organized baseball game. In 1862, U.S. President Abraham Lincoln outlined his Emancipation Proclamation, which outlawed slavery in U.S. territories. In 1867, in New York, the Belmont Stakes was run for the first time. In 1910, the first Father’s Day was celebrated in Spokane, Washington. In 1912, the U.S. government established the eight-hour work day. In 1934, the U.S. National Archives and Records Administration was established. In 1934, the U.S. Congress established the Federal Communications Commission (FCC). The commission was to regulate radio and, later, TV broadcasting. In 1944, the U.S. won the battle of the Philippine Sea against the Imperial Japanese fleet. In 1951, U.S. President Harry S. Truman signed the Universal Military Training and Service Act, which extended Selective Service until July 1, 1955, and lowered the draft age to 18. In 1964, the Civil Rights Act of 1964 was approved after surviving an 83-day filibuster in the U.S. Senate. In 1987, the U.S. Supreme Court struck down the Louisiana law that required schools to teach creationism. In 2000, the U.S. Supreme Court ruled that a group prayer led by students at public-school football games violated the 1st Amendment’s principle that called for the separation of church and state.

SURVEY SAYS RESPONSES: Last week, I asked NewsDash readers, “Did your father give you financial advice, or advice specifically about retirement savings?” More than two-thirds (67.7%) of responding readers reported their father gave them financial advice, while 32.3% said they didn’t. About advice specific to retirement savings and planning, 38.7% indicated their fathers gave them such advice, and 61.3% said they didn’t. Readers also shared some of the best financial or retirement advice their father offered. In verbatim comments about financial advice from Dad, readers shared their progress/results from taking Dad’s advice, such as the one whose father said to keep $20,000 in emergency savings. One reader explained Dad’s words of wisdom, “There is no free dog/cat.” Readers also shared more advice from fathers and grandfathers; one shared lessons he’s teaching his children, and one shared the advice the reader gave to parents. Editor’s Choice goes to the reader who said: “So I saved and saved and saved, and I’m retiring next year in my mid-fifties. THANK YOU Daddy!!!!!” A big thanks to all who participated in the survey. Read more >
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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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