Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
March 14th, 2018
Benefits & Administration
Insights on Retirement Plan Stranded Accounts
A study from Retirement Clearinghouse and Boston Research Technologies explores the scope of the mobile workforce missing participant problem with retirement plans. The study found 11% of stranded accounts had a stale address, and there were 1.42 stranded accounts per participant. Thirty-one percent of these accounts had balances less than $10,000, and 73% had less than $100,000. According to the study report, the strongest predictor of an account not being lost was the respondent’s knowledge of how to contact the company holding the account; accounts held by respondents who reported being able to do this were almost seven times less likely to be lost. Seventy-eight percent of missing participant account holders are employed—meaning they could have a new retirement plan to which they could roll over their stranded balances. Read more >
Majority of Women Under 40 Do Not Have a Financial Adviser
Seventy percent of female financial advisers say women investors are underserved as a broad demographic group, Edward Jones learned from a survey conducted during its third Annual Women’s Conference. This reinforces findings from the Center for Talent Innovations that discovered 75% of women under the age of 40 do not have a financial adviser. This amounts to $5 trillion in under-leveraged assets, Edward Jones says. Read more >
Confusion About HSAs Remains Default Employee Position
A new joint report by the LIMRA Secure Retirement Institute and Insured Retirement Institute (IRI) finds only 51% of Americans believe they are knowledgeable about health savings accounts (HSAs). However, many Americans are flatly unaware that they can use their HSA assets accumulated in their working years to pay for health care and long-term care expenses in retirement. “In fact, two in five Americans mistakenly believe that balances must be spent by the end of the year, or be forfeited,” researchers warn. LIMRA SRI and IRI find those who do not discuss HSAs with employees acknowledge they have insufficient expertise with HSAs. Nearly all advisers and employers surveyed say they would like to learn more. Read more >
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Products, Deals and People
Empower Launches ‘End-to-End’ Retirement Planning Solution
My Total Retirement is designed to help an individual from the goal-setting stage at the start of the one’s career through a withdrawal strategy that’s implemented when their working years conclude. Read more >
Economic Events

In February, the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2% seasonally adjusted (SA); rising 2.2% over the last 12 months, not seasonally adjusted (NSA), according to the Bureau of Labor Statistics. The index for all items less food and energy rose 0.2% in February, SA; up 1.8% over the year, NSA.

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

Market Mirror

Tuesday, the Dow lost 171.58 points (0.68%) to finish at 25,007.03, the NASDAQ closed 77.31 points (1.02%) lower at 7,511.01, and the S&P 500 decreased 17.71 points (0.64%) to 2,765.31. The Russell 2000 was down 9.00 points (0.56%) at 1,592.05, and the Wilshire 5000 fell 183.50 points (0.64%) to 28,680.12.

The price of the 10-year Treasury note was up 6/32, decreasing its yield to 2.846%. The price of the 30-year Treasury bond increased 16/32, bringing its yield down to 3.101%.

Ask the Experts
Refresher on Correcting 402(g) Excess Deferrals
“My plan needs to correct some 402(g) excess deferrals for the 2017 plan year. In looking at some old Ask the Experts columns, I stumbled upon an old Q&A in this regard, but was wondering if the information is still current.” Read more >
Investing
Managed Accounts, TDFs and Questions About ‘Alpha’
One of the most common approaches to valuing managed account services is to compare historical investment performance with a target-date fund or similar benchmark; Empower Retirement argues there is a better approach that involves considering “an alpha-equivalent measure.” Read more >
Small Talk
According to a new CareerBuilder survey conducted by The Harris Poll, around half of employers (49%) know within the first five minutes of an interview if a candidate is a good or bad fit for a position, and 8% make up their mind within a half hour or longer. Hiring managers and human resource professionals shared the most unusual things job candidates have done during the interview process. One candidate asked for a cocktail. Read more >

ON THIS DATE: In 1629, a Royal charter was granted to the Massachusetts Bay Colony. In 1794, Eli Whitney received a patent for his cotton gin. In 1891, the submarine Monarch laid telephone cable along the bottom of the English Channel to prepare for the first telephone links across the Channel. In 1900, U.S. currency went on the gold standard with the ratification of the Gold Standard Act. In 1914, Henry Ford announced the new continuous motion method to assemble cars. The process decreased the time to make a car from 12½ hours to 93 minutes. In 1951, U.N. forces recaptured Seoul for the second time during the Korean War. In 1964, a Dallas jury found Jack Ruby guilty of the murder of Lee Harvey Oswald. In 1967, John F. Kennedy’s body was moved from a temporary grave to a permanent one. In 1996, U.S. President Bill Clinton committed $100 million for an anti-terrorism pact with Israel to track down and root out Islamic militants. In 2003, Robert Blake was released from jail on $1.5 million bail. Blake had been jailed for the murder of his wife Bonny Lee Bakley.

 

WEDNESDAY WISDOM: “You know how advice is. You only want it if it agrees with what you wanted to do anyway.”—John Steinbeck, author

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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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