Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
June 5th, 2018
Benefits & Administration
Market Volatility Causing Retirement Savings Concerns
Despite reactions to extreme market volatility conditions in 2018, American workers are gaining a sense of comfort with the market, according to an Allianz Life Insurance study. However, the recent volatility in the markets is still affecting workers, with 37% admitting it is increasing their anxiety over nest eggs. If an additional major drop in the market were to cause an extreme monetary loss, 38% of respondents do not believe they could rebuild their retirement savings. Read more >
Understanding Roth Conversions
What is an in-plan Roth conversion, and what should plan sponsors consider before implementing the feature? Read more >
Industry Voices
Barry’s Pickings: The Possibility of a ‘Provider’s ERISA’
Michael Barry, president of October Three (O3) Plan Advisory Services LLC, discusses how the Securities and Exchange Commission’s (SEC)’s broker/investment adviser standard-of-conduct proposal would be necessary to the creation of a provider-based retirement system. Read more >
Economic Events
New orders for manufactured durable goods in April decreased $4.2 billion or 1.7% to $248.5 billion, the U.S. Census Bureau announced. This decrease, down following two consecutive monthly increases, followed a 2.7% March increase. Excluding transportation, new orders increased 0.9%. Excluding defense, new orders decreased 1.9%. Transportation equipment, also down following two consecutive monthly increases, drove the decrease, falling $5.6 billion or 6.1% to $87.1 billion.
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Market Mirror

Yesterday, the Dow gained 178.48 points (0.72%) to finish at 24,813.69, the NASDAQ closed 52.13 points (0.69%) higher at 7,606.46, and the S&P 500 increased 12.25 points (0.45%) to 2,746.87. The Russell 2000 was up 5.39 points (0.33%) at 1,653.37, and the Wilshire 5000 climbed 155.59 points (0.55%) to 28,654.21.

 

The price of the 10-year Treasury note decreased 11/32, bringing its yield up to 2.942%. The price of the 30-year Treasury bond fell 23/32, increasing its yield to 3.087%.

Compliance
Second Stock Drop Complaint Against Edison International Dismissed
A federal district court judge found that additional allegations that alternatives to continuing to offer the company stock would lead plan fiduciaries to find they would not do more harm than good were not context-specific enough to the case. Read more >
Invesco Accused of Self-Dealing in 401(k)
Invesco plan fiduciaries are accused of offering too many investment options—nearly all of them affiliated in some way with Invesco—and of failing to use the plan’s leverage as one of the larger employer-sponsored retirement programs in the U.S. to negotiate for reduced costs for the benefit of plan participants, among other things. Read more >
Small Talk

ON THIS DATE: In 1752, Benjamin Franklin flew a kite for the first time to demonstrate that lightning was a form of electricity. In 1851, Harriet Beecher Stow published the first installment of “Uncle Tom’s Cabin” in “The National Era.” In 1917, American men began registering for the World War I draft. In 1924, Ernst F. W. Alexanderson transmitted the first facsimile message across the Atlantic Ocean. In 1927, Johnny Weissmuller set two world records in swimming events. Weissmuller set marks in the 100-yard, and 200-yard, free-style swimming competition. In 1933, President Franklin Roosevelt signed the bill that took the U.S. off of the gold standard. In 1947, U.S. Secretary of State George C. Marshall gave a speech at Harvard University in which he outlined the Marshall Plan. In 1967, the National Hockey League (NHL) awarded three new franchises. The Minnesota North Stars (later the Dallas Stars), the California Golden Seals (no longer in existence) and the Los Angeles Kings. In 1975, Egypt reopened the Suez Canal to international shipping, eight years after it was closed because of the 1967 war with Israel. In 1998, Volkswagen AG won approval to buy Rolls-Royce Motor Cars for $700 million, outbidding BMW’s $554 million offer. In 2004, the U.S.S. Jimmy Carter was christened in the U.S. Navy in Groton, Connecticut.

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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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