Many small business owners have only planned for the future insofar as deciding that they will ultimately sell their firms and use the proceeds to finance their retirement; they need expert help from advisers, and so do their employees.
Each individual’s retirement income plan should be tailored specifically to their needs by coordinating DC plan distributions with decisions about when to take Social Security.
All too often, participants are focused on what markets have done in the last several months or years, and they get away from remembering the basics of long-term investing and saving.
Senator Orrin Hatch, an influential and outspoken Congressional voice on retirement policy, is set to retire in January 2019; with the mid-term election looming, passage of the senator’s “Retirement Enhancement and Savings Act” is a tall order.
Plan sponsors that care about the retirement readiness of their participants and feel a responsibility to help, should focus on efforts to prevent cashouts, and may find missing participants in the process.
As a result, insurers are scrutinizing potential customers more carefully, asking for extensive documentation and proof of compliance with stated policies.
Thomas Dodd, executive director of Pavilion Advisory Group, speaks to the importance of implementing a strategic withdrawal plan once retirees initiate distributions of DC plan assets.
As one of the first steps of pursuing fee levelization, plan sponsors and advisers should consider whether participants will be charged on a “pro rata” or “per capita” model.
When it comes to policing of retirement plans by the EBSA, the pace of settlements and corrections remains strong; experts pin this to the relative regional autonomy of EBSA offices.
Adding automatic deferral escalation and stretching the match are settlor functions because they are plan amendments, so plan sponsors should not fear fiduciary litigation, even if to some participants these changes seem to be not in their best interest.
It’s not hard to imagine why caregivers deprioritize their retirement savings; harder to figure out is how to support caregivers as they work to build their own financial wellness and retirement wealth.