Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
October 7th, 2016
Benefits & Administration
NQDC Plans Have Similar Designs As Qualified Plans
Seventy-one percent of plans allowing employer contributions make a match, and more than half of plan sponsors offer the same investment menu as offered in their qualified defined contribution (DC) plans, PSCA’s benchmarking report found. Read more >
Those Closest to Retirement Not Prepared
New data shows the group closest to retirement, Baby Boomers, struggle with retirement fundamentals and are not saving enough for their golden years. A survey by the Indexed Annuity Leadership Council (IALC) finds 60% of Baby Boomers think they need less than $1 million in retirement, when in reality at least a quarter of a million will be needed for health care costs alone. One in four Baby Boomers have less than $5,000 saved for retirement.Read more >
MOST READ ARTICLES
1
What Participants Want From Employers’ Retirement Plan Websites
2
2021 Recordkeeping Survey
3
TRIVIAL PURSUITS: How Many States Are in More Than One Time Zone?
4
Allowing for After-Tax Contributions in a 401(a) Plan
5
TRIVIAL PURSUITS: What do the M’s stand for in M&Ms?
Fiduciary Rule to Lead to DC Investment Lineup Changes
One-third of financial advisers who counsel defined contribution (DC) plans already plan to make changes to mutual funds used in their clients’ DC plans in 2017, a survey finds.Read more >
Participants Want Retirement Planning to Include Health Care Costs
Eighty-one percent of Americans believe it would be very or extremely valuable for their financial adviser to include health care costs in their retirement planning, according to research by Transamerica and Luntz Global Partners. Read more >
Sponsored message from Vanguard
A Powerful Combination: Target-Date Funds and Managed Accounts Cynthia Pagliaro and Stephen Utkus, Vanguard Center for Retirement Research, explain how a combination of target-date funds and managed accounts can work with all your plan participants.  Read more >
Products, Deals and People
J.P. Morgan Asset Management has announced the opening of its Center for Investment Excellence, a virtual education hub offering a collection of podcasts, publications, and other resources designed to give institutional investors the insight they need to make better investment decisions. Read more >
Investment Products and Service Launches
Franklin Templeton Investments rolls out actively managed ETF suite; AXA launches collective investment trust; BlackRock reducing iShares ETF costs; and more. Read more >
Economic Events

In the week ending October 1, the advance figure for seasonally adjusted initial claims for unemployment insurance was 249,000, a decrease of 5,000 from the previous week’s unrevised level of 254,000, the Department of Labor (DOL) reported. The four-week moving average was 253,500, a decrease of 2,500 from the previous week’s unrevised average of 256,000. This is the lowest level for this average since December 8, 1973, when it was 252,250.

The average interest rate for a 30-year fixed-rate mortgage is 3.42%, unchanged from one week ago, according to Freddie Mac. The average interest rate for a 15-year fixed-rate mortgage is 2.72%, also unchanged. 

Market Mirror

Thursday, the Dow closed 12.53 points (0.07%) lower at 18,268.50, the NASDAQ decreased 9.17 points (0.17%) to 5,306.85, and the S&P 500 increased by 1.04 (0.05%) to 2,160.77. The Russell 2000 was down 2.14 points (0.17%) at 1,246.23, and the Wilshire 5000 closed 11.34 points (0.05%) higher at 22,505.51.

On the NYSE, 3.1 billion shares traded, with a slight lead for declining issues. On the NASDAQ, 2.9 billion shares changed hands, with 3 decliners for every 2 advancers.

The price of the 10-year Treasury note decreased 10/32, bringing its yield up to 1.738%. The price of the 30-year Treasury bond fell 19/32, increasing its yield to 2.456%. 

Investing
September was another light month of trading for 401(k) investors with 0.14% of total balances traded in the month and one day of above-normal trading activity, according to the Aon Hewitt 401(k) Index. 401(k) plan participants moved at least $213 million into fixed income investments during the month. Read more >
Small Talk

ON THIS DATE: In 1765, nine American colonies sent a total of 28 delegates to New York City for the Stamp Act Congress. The delegates adopted the “Declaration of Rights and Grievances.” In 1777, during the American Revolution the second Battle of Saratoga began. In 1868, Cornell University was inaugurated in Ithaca, New York. In 1913, for the first time, Henry Ford’s entire Highland Park automobile factory was run on a continuously moving assembly line when the chassis was added to the process. In 1949, the German Democratic Republic (East Germany) was formed. In 1950, the U.S.-led U.N. forces crossed the 38th parallel and entered North Korea. In 1963, U.S. President John F. Kennedy signed a nuclear test ban treaty with Britain and the Soviet Union. In 1968, the Motion Picture Association of America adopted the film-rating system that ranged for “G” to “X.” In 1994, U.S. President Bill Clinton dispatched an aircraft carrier to the Persian Gulf when Iraqi troops were spotted moving toward Kuwait. The U.S. Army was also put on alert. In 1998, the U.S. government filed an antitrust suit that alleged Visa and MasterCard inhibit competition by preventing banks from offering other cards. In 2001, the U.S. and Great Britain began airstrikes in Afghanistan in response to that state’s support of terrorism and Osama bin Laden. The act was the first military action taken in response to the terrorist attacks on the U.S. on September 11, 2001. In 2003, in California, Arnold Schwarzenegger was elected governor in the recall election of Governor Gray Davis. In 2003, Randy Quaid received a star on the Hollywood Walk of Fame. In 2004, Billy Bob Thornton got a star on the Hollywood Walk of Fame.

And now it’s time for FRIDAY FILES

Dad gets ecstatic about light-up sneakers.Read more >
In Erie, Pennsylvania, a woman was commissioned by Febreze Air Purifiers to make bunny sculptures out of 40 pounds of dust―the average amount that the average American home collects in a year. [pic]Read more >
In Penza, Russia, a spider’s alien face-like markings set off fears of alien invasion after the homeowner who found it posted pictures of it on the Web. Despite its looks, a zoologist identified the species as a flower crab spider, and said there is no need to be afraid. [pic]Read more >

In Philadelphia, Pennsylvania, motorists reported they saw a man pedaling down the middle of a road on a big-wheeled tricycle. One motorist told a local TV station the tricycle was holding up traffic as cars gingerly drove around the pedaling man. Police are trying to figure out who the man is, what he was up to and whether he might be cited for the incident.

In Reading, Ohio, a woman made an excuse for being late for work that put her in hot water. The 18-year-old said someone dressed like a clown jumped a fence, waved a knife at her and cut her thumb. According to a local news station, police say investigators found inconsistencies in her story and charged her with making a false alarm, a misdemeanor.

In Harrison Township, New Jersey, a woman had something other than grief on her mind after her boyfriend was struck and killed by a car. According to the local ABC News station, the woman had been allowed to sit in the ambulance “in order to grieve the loss of her boyfriend and stay out of the inclement weather.” The medic contacted police later in the day after realizing her wallet was missing from her purse, which was located in the center console of the ambulance she was working in. The woman was arrested and allegedly admitted to stealing the wallet. It was returned to the medic, though it was missing $120 in cash.


Have a wonderful weekend!

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Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

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