However, there is confusion about how to get this additional income stream.
The complaint seeks to state a claim—without relying on hindsight—by arguing the underperformance of a large cap fund was “virtually guaranteed because it contained a serious design flaw from inception.”
However, the increasing “narrowness” of the sources of return in broad market indexes is concerning to MFS experts.
Findings suggest the opportunity is ripe for smart beta ETF products, but more industry education is needed.
With strong November returns, the Wilshire 5000 U.S. equity index extended an unprecedented run of consecutive monthly gains.
The results of a fiduciary primer quiz survey prove once again that institutional investing can be a tricky topic for even the most experienced investment committee members.
The idea is relatively simple: workers who do not yet have emergency savings will be directed to first fund a short-term savings account reserved for emergencies, before funding their retirement account.
Wilshire’s data shows this was the best one-year return since the year ending June 30, 2014; that year ended with a 15.51% median return and a third consecutive quarter to post an annual return above 10%.
Respondents across all three generations cite saving and investing for retirement as their primary financial goal; however, Millennials are less inclined to buy and hold for the long term.
Across mutual fund and collective investment trust target-date products, the top-three managers own 62.6% of the market, while the top 10 account for 88.9%.
While few if any investing professionals advocate for aggressive market timing, it is natural to ask the question of when the bull markets could cool—and how investors might respond now to address potentially uncompensated risk in their portfolios.
But only 46% know that annuities offer it, Jackson National Life found in a study done for the Insured Retirement Institute.
In spite of increased optimism, a new Wells Fargo survey finds a significant portion of workers still say they do not think they will reach their savings targets; many of them cite the challenge of meeting high health care costs while also saving.
But when they work with an adviser, they understand the importance of more aggressive investing.
The list of regulatory and legislative challenges affecting employers and their retirement plan consultants can seem endless, and when linked to the increasing litigation from the plaintiffs’ bar, it can seem impossible to reach a point of certainty.
Prudential will formally assume responsibility for pension benefits for approximately 45,000 former employees or their beneficiaries receiving less than $450 in monthly benefit payments from the plan.
Choosing passive investments is a clear and simple way to reduce fees; however, choosing the fund with the cheapest expense ratio does not “equate to checking the fiduciary box,” Cerulli warns.
Recordkeepers widely identify “reducing plan administration costs” and “maximizing participant savings” as the top two priorities for defined contribution plan sponsors; CITs are also a big focal point.
Cerulli’s research shows more than half of advisers create customized investment portfolios on a client-by-client basis, while 42% start with investment models and alter on a client-by-client basis.
An excessive fee lawsuit has been filed against fiduciaries of the Novitex Enterprise Solutions Retirement Savings Plan, a 401(k) plan which had more than $157 million in assets as of the end of 2015.