Few retirement plan investors may actually mirror their portfolios to a U.S. total market index—but there are still some important implications to be found in the record-setting performance of the Wilshire 5000, beyond the relative growth of small-cap and large-cap.
One clear way to help prevent retirement plan leakage is to help families cope with financial shocks and income volatility in the short term; one way to do this is to encourage use of “sidecar accounts.”
OCIOs are gaining momentum with health and hospital systems, defined contribution (DC) plans, public defined benefits (DB) plans, family offices, and sovereign wealth funds, as institutions face myriad investment-related, operational, and regulatory challenges, Cerulli Associates says.
The group also says the primary motivation of most
corporations in eliminating defined benefit plans has been to improve both the
level and predictability of their quarterly earnings; it has not been to
provide a superior benefit to their employees.