Data & Research July 8, 2015

Workplace the Right Place for Financial Education

Participants of a forum identified the workplace as a potentially effective venue for providing financial education and helping individuals improve their financial decisions.
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On March 17, the Government Accountability Office (GAO) convened a group of 20 financial literacy leaders and experts for a forum focusing on financial education in the workplace. Forum participants noted that employers have the potential to reach large numbers of adults in a cost-effective manner at a place where they make important financial decisions regarding, for example, retirement, life and health insurance, and specialized savings accounts for child care and medical expenses.

They also pointed out that employers already provide information about employee benefits, have key information about employees’ lives, and are generally trusted to provide sound financial information and advice. They suggested information provided by employers should go beyond the current emphasis on retirement and other benefits to include education about budgeting, money management, building emergency savings and understanding the financial impact of health care.

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Forum participants noted that automatically enrolling new employees into defined contribution (DC) retirement plans may increase retirement savings, but it may not be appropriate for workers who have other pressing financial needs. Some experts said such behavioral plan design should complement, rather than replace, traditional financial education. Forum participants also recommended individualizing education based on employees’ unique circumstances and offering personal financial coaching in the workplace.

The forum noted the importance of reaching all workers, including shift employees, contingent employees, low-income employees and those with different cultural backgrounds. They suggested making content relevant and understandable, delivering information through online tools and mobile devices, and leveraging partners such as unions and community groups to provide education.

The GAO report about the forum notes that there is limited research about the effectiveness of education not related to retirement savings. Some forum participants suggested a standard set of benchmarks for measuring effectiveness would be useful. In addition, employers expect solid evidence of the benefits for their business to justify their return on investment for financial education programs.

The GAO report about the forum discussion may be downloaded from here.

Deals & People July 8, 2015

MainStay Announces Portfolio Strategy Leader

Morgan Stanley veteran Charles Reinhard will lead portfolio strategy and thought leadership provided to advisers and investors.
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MainStay Investments, a New York Life Company, has appointed Charles Reinhard managing director, leading portfolio strategy.

This newly created position will enhance and expand the approaches to multi-solution investment portfolio construction and adviser and investor education efforts offered across the MainStay Funds, IndexIQ ETFs and initiatives at MainStay partner firms. Based in New York City, Reinhard will report to Richard T. Miller, CFA, managing director and head of marketing and product management at MainStay Investments.                             

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Reinhard joins MainStay Investments with more than 28 years of investment industry experience in various senior positions, including managing director and deputy chief investment officer in the Global Wealth Management Division at Morgan Stanley, where his responsibilities included global investment strategy and strategic and tactical asset allocation models. Reinhard also sat on the committee advising firm-managed client strategies.

Before joining MainStay, Reinhard was senior consultant of new products and investment strategy at Direxion Investments, where he had responsibility for creating new investment products and investment thought leadership. Prior to joining Morgan Stanley, Reinhard was director of portfolio strategy and associate director of research, senior vice president, at Neuberger Berman. 

“We are thrilled to welcome Charlie to the company, as he will play a significant role in providing thought leadership and insights tailored to the retail and institutional marketplace,” says Stephen Fisher, president of New York Life Investment Management LLC (NYLIM) and MainStay Investments. “Charlie’s extensive experience as a market strategist and his knowledge of economic and capital markets will enable him to leverage the global thought leadership of MainStay’s multi-boutique model, deliver thoughtful insights and perspectives on market events, and help advisers build smarter portfolios for their clients—for any market environment.”

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