Products May 23, 2017

Cash Balance Plan Solutions Aims to Help With Investment Decisions

Transamerica and Sage Advisory Services have teamed up on a solution to ensure that the investments meet the plan’s needs in helping prepare employees for retirement.
Reported by

Transamerica introduced the Transamerica Sage Cash Balance Solution to help small and mid-size businesses with retirement planning.

An employer that sponsors a cash balance retirement plan will consult with the plan’s adviser to select one of three investment solutions independently managed by Sage Advisory Services. The growth, moderate or conservative investment strategies are designed and managed to meet common cash balance plan objectives, including principal protection, common interest crediting rate targets, and an awareness of the annual investment time horizon.

For more stories like this, sign up for the PLANADVISERdash daily newsletter.

The plan’s adviser will work with the sponsor to ensure that the investments meet the plan’s needs in helping prepare employees for retirement. The plan sponsor will select its preferred third-party administrator and actuary to serve the plan with the adviser’s guidance. The plan sponsor and adviser can rely on Sage Advisory Services for portfolio construction and ongoing investment management. The three investment strategies are created specifically for employer-sponsored retirement plans and are built to help cash balance plan sponsors manage risks while potentially enhancing investment returns.

“Cash balance plans are increasingly used by small and mid-sized businesses to help their employees prepare for a secure retirement. Cash balance plans can help businesses maximize their retirement plan contributions and accelerate employees’ retirement savings,” says Jim Kais, Transamerica senior vice president.  

Cash balance plans are employer-sponsored retirement plans that offer lower risks and more predictable costs for the employer than defined benefit plans. Like 401(k) plans, cash balance plans allow employees to have transparent individual account balances, along with optional IRA rollovers if the employee leaves the company.

“We’re proud to work with Sage Advisory Services to make investing for retirement easier for small and mid-size businesses,” adds Kais. “We’d like to make it possible for more employees to benefit from the retirement savings offered by their employer’s cash balance plan. Our goal is to help people achieve a lifetime of financial security.”
Client Service May 23, 2017

Advice Pays Confidence Dividends for Employees

Nearly half of people without an adviser have taken no steps to address the possibility of outliving their savings—three times as many as those with an adviser. 
Reported by

Findings from the Northwestern Mutual Planning and Progress study show Americans who receive regular guidance from financial advisers feel markedly more prepared for retirement and other financial challenges, leading to far greater confidence.

According to the data shared by the firm, seven in 10 Americans with advisers say their retirement plan is designed to withstand market cycles, compared to 30% of those who do not use an adviser. At the same time, 49% of people without an adviser have taken no steps to address the possibility of outliving their savings—three times as many as those with an adviser (15%).

Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.

“As people live longer, the economy continues to fluctuate, and health care and other costs increase, navigating retirement planning becomes more complex and overwhelming,” warns Rebekah Barsch, vice president planning, Northwestern Mutual. “Working with an adviser is like having an experienced guide map out an itinerary for your retirement journey that’s tailored to your unique lifestyle goals and circumstances.”

In addition to a heightened level of retirement readiness, Northwestern Mutual suggests Americans who work with advisers “tend to feel more financially confident overall.”

“Notably, individuals with financial advisers are almost twice as likely as those without to say they feel very financially secure, at 68% vs. 36%, respectively,” the research shows. “Additionally, more than three quarters (77%) view themselves as ‘highly disciplined’ or ‘disciplined’ planners compared to 41% of those without an adviser.”

Other findings show more than half (52%) of U.S. adults with advisers think the economy will be better this year than in 2016 compared to just 39% of those without advisers. Further, six in 10 people with advisers “believe that the American Dream is still attainable to most,” while only four in 10 of those without an adviser feel the same.

The full survey findings are available for download here. 

«