Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
September 18th, 2018
Benefits & Administration
Over Half of Americans Have Nothing Saved in a Retirement Account
Among all working Americans, the median retirement account balance is zero, according to a report from The National Institute on Retirement Security (NIRS).  Further findings were that four out of five working Americans have less than one year’s income saved in retirement accounts. Read more >
Correlation Found Between Profitability and Quality of 401(k) Plans
Above-average-rated retirement plans are more apt to be found at companies with 20% to 80% higher profitability than are average-rated plans, says T. Rowe Price Retirement Plan Services Inc. in new research. “Where 401(k) Design and Corporate Profitability Cross Paths,” finds that companies with strong performance have quality 401(k) plans. The study evaluated 485 401(k)s with more than $50 million in assets and a BrightScope rating, which served as a proxy for 401(k) plan quality. Read more >
An Accurate Perception of Their Finances Eludes Many Americans
One-third of Americans do not have an accurate handle on the state of their own finances, thinking they are better or worse off than they actually are, according to Prudential Financial Inc.’s Financial Wellness Census. More than 50% think they will be able to achieve their financial goals, but less than 50% are on track to achieve them. Read more >
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Products, Deals and People
Prudential Financial Inc. is undertaking a three-pronged effort “to kick-start a conversation among Americans from all walks of life about their relationship with money and its impact on their well-being,” a representative from the company says. Prudential also launched a new campaign created in partnership with Droga5 called “The State of US,” which includes a series of films that spotlight the financial challenges facing Americans, particularly young parents, women, pre-retirees and the self-employed. Read more >
Market Mirror

Monday, the Dow was down 92.55 points (0.35%) at 26,062.12, the NASDAQ was down 114.25 points (1.43%) at 7,895.79, and the S&P 500 was down 16.18 points (0.56%) at 2,888.80. The Russell 2000 closed 18.17 points (1.06%) lower at 1,703.55, and the Wilshire 5000 decreased 206.80 points (0.68%) to 30,068.73.

 

The price of the 10-year Treasury note was up 1/32, decreasing its yield to 2.994%. The price of the 30-year Treasury bond increased 1/32, bringing its yield down to 3.134%.

Investing
Five-Year Market Forecast Sounds Mostly Optimistic Note
Northern Trust’s Capital Market Assumptions Working Group has updated the firm’s five-year capital market forecast, used both to promote industry discussion about risk and return and to inform strategic asset-allocation decisions. Broadly speaking, Northern Trust expects relatively steady economic growth, controlled inflation and accommodative monetary policy to combine to drive “good-but-not-great” risk asset returns and “low-but-mostly-positive” fixed-income returns. Read more >
Institutional Investors Entering New Asset Classes, Paying Less in External Fees
The investment consulting firm bfinance released its 2018 Global Asset Owner Survey, compiling the responses of approximately 500 investors, the majority which are pension funds, with combined assets of $8 trillion. “There is a gulf between the returns that many investors require and the widespread expectations for what a traditional portfolio may be expected to deliver through the coming decades,” warns David Vafai, bfinance CEO. Read more >
Small Talk

ON THIS DATE: In 1789, Alexander Hamilton negotiated and secured the first loan for the United States. The Temporary Loan of 1789 was repaid on June 8, 1790, at the sum of $19,608.81. In 1793, President George Washington laid the actual cornerstone of the U.S. Capitol. In 1837, Tiffany & Co. was founded in New York City. In 1891, Harriet Maxwell Converse became the first white woman to ever be named chief of an Indian tribe. The tribe was the Six Nations Tribe at Towanda Reservation in New York. In 1927, Columbia Phonograph Broadcasting System made its debut with its network broadcast over 16 radio stations. The name was later changed to CBS. In 1946, Mound Metalcraft was founded in Mound, Minnesota. The company later changed its name to Tonka Toys Incorporated. In 1947, the United States Air Force was established as a separate military branch by the National Security Act. In 1955, the “Ed Sullivan Show” began on CBS-TV. The show had been “The Toast of the Town” since 1948. In 1963, “The Patty Duke Show” premiered on ABC-TV. In 1965, the first episode of “I Dream of Jeannie” was shown on NBC-TV. In 1981, a museum honoring former U.S. President Gerald Ford was dedicated in Grand Rapids, Michigan. In 2003, Robert Duvall received a star on the Hollywood Walk of Fame.

 

 

TRIVIAL PURSUITS: Not this week.

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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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