Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
June 20th, 2018
Benefits & Administration
A Shift in Educating Participants—What Is Financial Wellness?
For years, education and communications for participants centered on investing themes; times have changed, however, and the topic of “financial wellness” is clearly gaining favor. While the interest in financial wellness among retirement plan sponsors is clear, that doesn’t mean the trend is easy to define or measure. As noted by a panel of industry experts convened on the second day of the 2018 PLANSPONSOR National Conference, the real challenge for the industry is to make sense of what financial wellness is—and how to make the most of it for participants. Read more >
Brokerage Accounts, Dividends Critical Sources of Retirement Income
Future retirees expect that withdrawals from retirement accounts, such as defined contribution (DC) plans and individual retirement accounts (IRAs) will supply 16% of their retirement income, but in fact, these accounts supply 22% of income, a report says. For retirees with $500,000 to $2 million in investable assets, this jumps to 24%, and for those with more than $2 million, 30%. Read more >
PSNC 2018: Planning for Post-Employment
Retirement plan sponsors have a fiduciary duty to help plan participants who terminate or retire and provide them the tools they need to best protect their assets. Read more >
MOST READ ARTICLES
1
IRS Announces 2019 HSA Contribution Limits
2
4% Rule Not a Reliable Retirement Income Withdrawal Strategy for All People
3
Lawsuit Argues MetLife Pension Calculations Use Outdated Mortality Table
4
401(k) Plan Sponsors Enhancing Plan Design
5
Financially Well Employees Buoy the Bottom Line
Firms Offer Framework for Planning for Retirement Health Costs
Due to the variations in a person’s life and health status year over year, joint research from Vanguard and Mercer encourages investors to focus on factors they can control and plan accordingly using five guidelines. Read more >
Ask the Experts
When There Are Limits on Participation in 457(b)s
“I used to work for a private tax-exempt organization, but I recently took a job with a public university. In the 457(b) plan that it sponsors, all employees are allowed to participate. I thought that participation in 457(b) plans was limited to select management and highly compensated employees?” Read more >
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 >
Economic Events

Privately-owned housing starts in May were at a seasonally adjusted annual rate of 1,350,000, the Census Bureau reported. This is 5.0% above the revised April estimate of 1,286,000, and is 20.3% above the May 2017 rate of 1,122,000. Single-family housing starts in May were at a rate of 936,000; this is 3.9% above the revised April figure of 901,000. The May rate for units in buildings with five units or more was 404,000.

Market Mirror

Tuesday, the Dow lost 287.26 points (1.15%) to finish at 24,700.21, the NASDAQ decreased 21.44 points (0.28%) to 7,725.59, and the S&P 500 closed 11.18 points (0.40%) lower at 2,762.57. The Russell 2000 was up nearly one point (0.06%) at 1,693.45, and the Wilshire 5000 was down 74.84 points (0.26%) at 28,946.49.

The price of the 10-year Treasury note was up 8/32, decreasing its yield to 2.892%. The price of the 30-year Treasury bond increased 12/32, bringing its yield down to 3.026%.

Compliance
PSNC 2018: Best Practices to Protect Yourself and Your Company from Fiduciary Liability Lawsuits
Having prudent processes in place when making plan decisions is of utmost importance, and if a plan sponsor gets sued, having fiduciary liability insurance can be a big help. Read more >
Investing
Understanding Asset Allocation Vehicles
At the 2018 PLANSPONSOR National Conference (PSNC), a day two session covered the latest trends among asset allocation vehicles, particularly target-date funds (TDFs) and managed accounts. Read more >
Small Talk
Of workers who have a child living at home, 78% say it’s possible to be successful in your career and as a parent, according to a CareerBuilder survey. However, two-thirds (66%) spend only at least three hours a day with their children, and more than one-third (38%) have missed a significant event in their child’s life due to work in the last year. More than one in five (21%) have missed three or more events. Read more >

ON THIS DATE: In 1782, Congress approved the Great Seal of the United States. In 1863, West Virginia became the 35th state to join the U.S. In 1863, the National Bank of Philadelphia in Philadelphia, Pennsylvania, became the first bank to receive a charter from Congress. In 1928, Washburn-Crosby Company merged with 26 other mills to become General Mills. In 1941, the U.S. Army Air Forces was established, replacing the Army Air Corps. In 1947, Benjamin “Bugsy” Siegel was mur.dered in Beverly Hills, CA, at the order of mob associates angered over the soaring costs of his project, the Flamingo resort in Las Vegas. In 1955, the AFL and CIO agreed to combine names and merge into a single group. In 1963, the United States and Soviet Union signed an agreement to set up a hot line communication link between the two countries. In 1967, boxer Muhammad Ali was convicted in Houston of violating Selective Service laws by refusing to be drafted. The U.S. Supreme Court later overturned the conviction. In 1977, the Trans-Alaska Pipeline began operation. In 1983, the U.S. Supreme Court ruled that employers must treat male and female workers equally in providing health benefits for their spouses.


WEDNESDAY WISDOM:
“Hatred does not cease by hatred, but only by love; this is the eternal rule.”—Buddha

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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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