Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
May 11th, 2018

2018 Plan Sponsor of the Year: Hendrick Motorsports

Read about steps Hendrick Motorsports made to improve its plan health and retirement outcomes for participants. Read more >
Benefits & Administration
Investor Conservatism Doesn’t Jibe With Retirement Risk Fears
On average, consumers hold less than one-half of their assets in stocks, stock mutual funds, and exchange-traded funds (ETFs), according to the report “Protection, Growth and Income” based on a study conducted on behalf of the Insured Retirement Institute and AXA Financial. Those who have a low tolerance for investment risk have an average of 37% allocated to stocks. For true conservative investors (those with low risk tolerance and 25% or less of their investable assets allocated to stocks), the fear of losing money in the stock market (approximately 80% of respondents) and lack of trust in the stock market for money they are counting on in retirement (approximately 70%) are the most often cited reasons for allocating less of their portfolios to stocks. “Unfortunately, under-allocating to stocks can hamper progress toward financial and retirement goals, resulting in lower retirement income and financial resources that are inadequate for managing financial risks, such as health care shocks and inflation, during retirement,” the report notes. Read more >
Education Key to HDHP and HSA Engagement
Just 13% of the 1,100 respondents to WEX Health’s first-ever Clear Insights report identified a health savings account (HSA) as the employer benefit that provides the most pre-tax savings. In addition, more than half (54%) were not aware that they could invest their HSA funds in stocks, mutual funds and other investment vehicles. And, three-quarters of respondents see their HSA as a way to pay for health care expenses this year, which indicates they may not be aware that funds can be carried over into the next year. The most challenging part respondents cited in using their HSA was making sure to have enough funds set aside to cover deductibles (29%) and figuring out how much money to put in the account overall (21%). The survey found the ways to most motivate employees to access resources and make better health care choices. Read more >
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Products, Deals and People
OneAmerica Offers Retirement Plan With Lifetime Income Option
OnePension is a profit-sharing plan that allows participants to annuitize their account balances when they retire. Read more >
Investment Products and Services Launches
Advantus rebrands as Securian Asset Management, and Northern Trust to provide services for new Morningstar funds. Read more >
Sponsored message from Vanguard
Snapshots of TDF performance miss the big picture
When evaluating TDF performance, use a holistic approach to look beyond a single point in time. Read more >
Economic Events

In April, the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2% seasonally adjusted (SA); rising 2.5% over the last 12 months, not seasonally adjusted (NSA), the Bureau of Labor Statistics announced. The index for all items less food and energy rose 0.1% in April SA; up 2.1% over the year NSA.

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

In the week ending May 5, the advance figure for seasonally adjusted initial claims for unemployment insurance was 211,000, unchanged from the previous week’s unrevised level of 211,000, the Labor Department reported. The four-week moving average was 216,000, a decrease of 5,500 from the previous week’s unrevised average of 221,500. This is the lowest level for this average since December 20, 1969, when it was 214,500.

The average interest rate for a 30-year fixed-rate mortgage was unchanged from one week ago, at 4.55%. The average interest rate for a 15-year fixed-rate mortgage is 4.01%, down from 4.03%.

Market Mirror

Thursday, the Dow increased 196.99 points (0.80%) to 24,739.53, the NASDAQ gained 65.07 points (0.89%) to finish at 7,404.98, and the S&P 500 climbed 25.28 points (0.94%) to 2,723.07. The Russell 2000 was up 7.66 points (0.48%) at 1,603.71, and the Wilshire 5000 closed 231.21 points (0.82%) higher at 28,309.83.

The price of the 10-year Treasury note increased 9/32, bringing its yield down to 2.963%. The price of the 30-year Treasury bond climbed 1 0/32, decreasing its yield to 3.110%.

Compliance
Seasons 52 Settles EEOC Age Discrimination Lawsuit
To settle a nationwide class discrimination lawsuit brought on by the U.S. Equal Employment Opportunity Commission (EEOC), Orlando-based restaurant chain Seasons 52 will be required to pay $2.85 million to individuals previously denied of employment, allegedly due to age. More than 135 individuals testified that Season 52 managers inquired or commented about age. Read more >
Small Talk

ON THIS DATE: In 1647, Peter Stuyvesant arrived in New Amsterdam to become governor. In 1858, Minnesota was admitted as the 32nd U.S. state. In 1910, Glacier National Park in Montana was established. In 1927, the Academy of Motion Picture Arts and Sciences was founded. In 1934, a severe two-day dust storm stripped the topsoil from the great plains of the U.S. and created a “Dust Bowl.” The storm was one of many. In 1944, a major offensive was launched by the allied forces in central Italy. In 1947, the creation of the tubeless tire was announced by the B.F. Goodrich Company. In 1949, Siam changed its name to Thailand. In 1995, the Nuclear Nonproliferation Treaty was extended indefinitely. The treaty limited the spread of nuclear material for military purposes. In 1997, Garry Kasparov, world chess champion, lost his first ever multi-game match. He lost to IBM’s chess computer Deep Blue. It was the first time a computer had beaten a world-champion player.

And now it’s time for FRIDAY FILES!

Most patient cat ever. Read more >
Baby boy wants to be just like his dad. Read more >
Trampolines can be fun but can also be dangerous. Read more >

In Holmdel, New Jersey, Holmdel High School staff and athletic coaches had alerted a school resource officer “that they were finding human feces” at or near the track and football field “on a daily basis,” according to the Asbury Park Press, and an investigation was launched. School staffers monitored the field until they identified the superintendent of the Kenilworth School District as the culprit. One community member told Patch New Jersey there had been at least eight poop detections in the past few months.

In Rittman, Ohio, a couple was startled to find a stranger who had helped himself to leftover Easter candy and then fell asleep on the couch of their apartment. Rittman police say a 36-year-old man climbed through an unlocked window, got his a sugar fix and fell asleep overnight in the couple’s living room. A male resident of the home called 911 around 6 a.m. the next morning to report that “some random guy” wouldn’t wake up. He can be heard yelling at the man to “get out of here.” The man did leave and was arrested nearby.

Near Slupca, Poland, a tractor-trailer overturned on a highway, spilling tons of liquid chocolate that solidified into a huge sticky mess. The private broadcaster TVN24 showed images of an overturned truck surrounded by brown chocolate covering six lanes on the A2 motorway, blocking traffic in both directions. Rescue officials said the liquid chocolate was solidifying as it cooled and would require large amounts of hot water to clear away. A senior brigadier with the fire brigade of Slupca said, “The cooling chocolate is worse than snow.”

Have a wonderful weekend!

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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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