Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
November 20th, 2017
Benefits & Administration
Two-Thirds of Millennials Are Saving for Retirement
In a new report, “Breaking the Millennial Myth,” Natixis Global Asset Management examines the financial goals of Millennials, those born between 1980 and 2000. The oldest, Natixis says, are 37—raising families and buying homes. They are anything but the “slackers” other generations may think of when they hear the word Millennial. Natixis says that Millennials “are risk-conscious and have retirement in their sights, and when it comes to their finances, they are very much goals-focused.” Sixty-four percent say they have financial goals, and 59% have a financial plan in place to achieve them. However, some Millennials are too focused on the short term. Read more >
Leadership Forum Urges Update of Open MEPs
J.P. Morgan Asset Management this week hosted an informative video webcast on the topic of “Building a More Robust and Inclusive U.S. Retirement System Amid a Changing Economy.” During the presentation both Anne Lester, head of retirement solutions for J.P. Morgan Asset Management, and Ida Radamacher of The Aspen Institute Financial Security Program repeatedly stressed the huge opportunity open multiple employer plans, or “open MEPs,” offer for broadly improving retirement readiness in the U.S. workforce. This approach would allow small employers to take advantage of the same economies of scale that make large 401(k) plans effective savings vehicles from both the perspective of the employer and the employee. Read more >
MOST READ ARTICLES
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J.P. Morgan Agrees to Settle Stable Value Funds Suit
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SECURE Act Passes House, Bringing Calls for Senate Collaboration
3
Individuals, Employers and Government All Play a Part in Retirement Readiness
4
Participant Loans: A Fiduciary Storm Brewing?
5
What to Know About Financial Audits Filed with Form 5500s
Products, Deals and People
Retirement Industry People Moves
Industry veteran joins Meeder as SVP; PGIM appoints chief marketing officer to drive global expansion; FS Investments hires national sales manager to oversee sales professionals; and more. Read more >
Economic Events

Privately-owned housing starts in October were at a seasonally adjusted annual rate of 1,290,000, the Census Bureau reported. This is 13.7% above the revised September estimate of 1,135,000.

 

THE ECONOMIC WEEK AHEAD: Tomorrow, the National Association of Realtors will report about existing home sales for October. Wednesday, the Census Bureau will report about durable goods orders for October, and the Labor Department will issue its initial claims report.

Sponsored message from AVIVA INVESTORS
Stock correlations are down. What does it mean for investors?
Correlations in U.S. and European equity markets have fallen dramatically this year, as investors focus on improving fundamentals rather than external events. Aviva Investors explores the implications of this developing trend for global markets. Read more >
Market Mirror

Friday, the Dow lost 100.12 points (0.43%) to finish at 23,358.24, the NASDAQ decreased 10.50 points (0.15%) to 6,782.79, and the S&P 500 was down 6.79 points (0.26%) at 2,578.85. The Russell 2000 was up 5.94 points (0.40%) at 1,492.82, and the Wilshire 5000 closed 60.50 points (0.23%) lower at 26,790.38.

 

The yield for the 10-year Treasury note was 2.344%. The yield for the 30-year Treasury bond was 2.779%.

 

WEEK’S WORTH: For the week ending November 17, the Dow decreased 0.27%, the NASDAQ increased 0.47%, and the S&P 500 was down 0.13%. The Russell 2000 gained 1.19%, and the Wilshire 5000 was up 0.06%.

Compliance
Report Highlights Dramatic Multiemployer Insurance Deficit
The Pension Benefit Guaranty Corporation’s (PBGC) Fiscal Year 2017 Annual Report shows that the deficit in its insurance program for multiemployer plans rose to $65.1 billion at the end of FY 2017, up from $58.8 billion a year earlier. According to PBGC, the increase was driven primarily by the ongoing financial decline of several large multiemployer plans that are expected to run out of money in the next decade. Read more >
From the Magazine
The Middle Ground
After years of receiving disappointing returns from the great majority of traditional active equity managers and paying high fees in return, many U.S. corporate defined benefit (DB) plan sponsors have voted with their wallets and opted for the simplicity, and market returns, of passive equity strategies at minimal cost. There is a middle ground, however, known, among other names, as “factor” investing. Read more >
Small Talk

ON THIS DATE: In 1789, New Jersey became the first state to ratify the Bill of Rights. In 1943, during World War II, U.S. Marines began their landing on Tarawa and Makin atolls in the Gilbert Islands. In 1945, 24 Nazi leaders went before an international war crimes tribunal in Nuremberg, Germany. In 1962, the Cuban Missile Crisis ended. The Soviet Union removed its missiles and bombers from Cuba and the U.S. ended its blockade of the island. In 1962, Mickey Mantle was named the American League Most Valuable Player for the third time. In 1983, an estimated 100 million people watched the controversial ABC-TV movie “The Day After.” The movie depicted the outbreak of nuclear war. In 1986, the one billionth Little Golden Book was printed. The title was The Poky Little Puppy. In 1993, the U.S. Senate passed the Brady Bill and legislation implementing the North American Free Trade Agreement (NAFTA). In 2001, the U.S. Justice Department headquarters building was renamed the Robert F. Kennedy building by President George W. Bush. The event was held on what would have been Kennedy’s 76th birthday.

SURVEY SAYS RESPONSES: Last week, I asked NewsDash readers, “What days off does your employer provide for Thanksgiving and are you asking for more?” More than half of responding readers (52.2%) said they get Thanksgiving Day and the day after off, while 21.1% get Thanksgiving Day only. Twenty percent reported they leave early the day before and get both Thanksgiving and the day after off. Most (55.6%) of respondents have not asked for any more days off for the Thanksgiving holiday. Slightly more than 12% have asked for the day before. In verbatim comments some said working the day after Thanksgiving is productive for them, while one said the opposite. One reader said everyone should get Thanksgiving and the day after. A few readers noted that even though they get the day off, they still work. Some readers explained that their reasons for taking an extra day were not just to have a day of rest or fun, like the reader who said children are out of school the day before. Editor’s Choice goes to the reader who said: “I can turn 3 days of PTO into 9 straight days of vacation with Thanksgiving and that Friday off. That’s a value play!” Thank you to everyone 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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