Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
October 27th, 2015
Benefits & Administration
How Will Employers Respond to Changed Savings Incentives?
Proposed tax reform for retirement savings has led industry groups to speculate that employees will stop saving in employer plans if tax incentives are taken away, and that employers will stop offering retirement plans. Tax reform on retirement savings has already happened in Denmark, and research published by the National Bureau for Economic Research (NBER) shows employers followed the lead of employees in their retirement-savings offerings.Read more >
Millennials Could Face Late Retirement
The class of 2015 faces a retirement age as late as 75—two years later than what the Class of 2013 could expect—because of increasing student loan debt, rising rents and Millennials’ approach to money management, according to analysis by NerdWallet.Read more >
MOST READ ARTICLES
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TRIVIAL PURSUITS: What do the M’s stand for in M&Ms?
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2020 Recordkeeping Survey
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TRIVIAL PURSUITS: Meaning and Origin of the Idiom “Watershed Moment?”
4
John Hancock Agrees to Procedural Changes in ERISA Suit Settlement
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2021 Defined Benefit Administration Survey
Short-Term Financial Goals Derail Retirement
Long-term financial goals are losing out to short-term financial pressures, Natixis Global Asset Management found in its 2015 Retirement Plan Participant Study. Sixty percent of workers are saving less than 7.5% for retirement, and 40% are contributing less than 5%.Read more >
Economic Events
Sales of new single-family houses in September were at a seasonally adjusted annual rate of 468,000, according to estimates released jointly by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 11.5% below the revised August rate of 529,000, but is 2.0% above the September 2014 estimate of 459,000.
Sponsored message from BlackRock
Multi-Manager Fixed Income: The Way Forward?
Interest rates are not the only challenge facing bond funds. Can a multi-manager approach better position DC plans To navigate the uncertain fixed income environment?Read more >
Market Mirror

Yesterday, the Dow was down 23.65 points (0.13%) at 17,623.05, the NASDAQ was up 2.84 points (0.06%) at 5,034.70, and the S&P 500 slipped 3.97 points (0.19%) to 2,071.18. The Russell 2000 lost 5.86 points (0.50%) to finish at 1,159.50, and the Wilshire 5000 closed 47.10 points (0.22%) lower at 21,566.96.

On the NYSE, 3.2 billion shares changed hands, and on the NASDAQ, 2.7 billion shares traded, with 1.6 declining issues for each advancing issue on both exchanges.

The price of the 10-year Treasury note was up 9/32, decreasing its yield to 2.057%. The price of the 30-year Treasury bond increased 20/32, bringing its yield down to 2.869%.

Compliance
PBGC Updates Premium Rates for 2016
The Pension Benefit Guaranty Corporation (PBGC) has updated its website with premium rates for 2016. The per-participant flat premium rate for plan years beginning in 2016 is $64 for single-employer plans (up from a 2015 rate of $57) and $27 for multiemployer plans (up from a 2015 rate of $26).Read more >
Investing
Is Portfolio Concentration Better than Diversification?
Traditional asset pricing theory implies that diversified portfolios are optimal and suggest investors do not take advantage of international diversification opportunities, but more recent studies argue that portfolios can be under-diversified but optimal if they are formed on information advantage, say researchers from the University of Wyoming, the University of Wisconsin-Madison and Brock University. The researchers’ own study shows that concentrated investment strategies in international markets can be optimal. Their results suggest that investors rationally choose to overweight certain markets and industries because of information advantage from specialization and economies of scale.Read more >
Small Talk

ON THIS DATE: In 1858, Roland Macy opened Macy’s Department Store in New York City. It was Macy’s eighth business adventure, the other seven failed. In 1904, the New York subway system officially opened. It was the first rapid-transit subway system in America. In 1925, Fred Waller received a patent for water skis. In 1938, Du Pont announced “nylon” as the new name for its new synthetic yarn. In 1978, Egyptian President Anwar Sadat and Israeli Prime Minister Menachem Begin were named winners of the Nobel Peace Prize for their progress toward achieving a Middle East accord. In 1997, the Dow Jones Industrial Average dropped 554.26 points. The stock market was shut down for the first time since the 1981 assassination attempt on U.S. President Reagan. In 2002, Emmitt Smith (Dallas Cowboys) became the all-time leading rusher in the NFL when he extended his career yardage to 16,743. He achieved the record in his 193rd game. He also scored his 150th career touchdown.

 

TUESDAY TRIVIA: The fear of Halloween is called “samhainophobia.”

TRIVIAL PURSUITS: On Halloween we speak of ghouls and goblins, but do you know what they are?Read more >
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Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

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