PLANADVISER Weekend Newsdash
Week ending March 30th, 2018

Happy Friday, readers! Last night we celebrated the annual Excellence in Retirement Awards Dinner in New York, where we announced the winners of both the 2018 Plan Sponsor and Plan Adviser of the Year designations. Visit the www.planadviser.com homepage for more information. While the event was, we hope, a lot of fun for all the attendees, we were very pleased to see so much technical and constructive discussion of the pressing issues facing defined contribution and defined benefit retirement plans. In particular, we noticed the “decumulation challenge” was talked about with much greater frequency than in previous years—and it seems clear that the topic will only increase in importance as the Baby Boomer population exits the workforce. 

Retirement Income and Rollovers
Measuring Retirement Income Adequacy Not An Exact Science
Researchers have developed diverse approaches for quantifying the adequacy of retirement income, focusing on different groups of retirees and employing different definitions of income and adequacy, a CBO report notes. Read more >
As Participant Sentiments Improve, Sponsor Decumulation Concerns Increase
Anne Ackerley, head of BlackRock’s defined contribution business, sat down last week with PLANADVISER to offer a sneak peek at the DCIO provider’s latest DC Pulse Survey; the data shows increased confidence among plan participants, while sponsors have emerging decumulation concerns. Read more >
LPL Researchers Perspectives on Managing Interest Rate Risks
The researchers expect yields to grind gradually higher during the year, but not in a straight line. As such, they continue to recommend portfolio positioning with a duration (a measure of interest rate sensitivity) lower than the Bloomberg Barclays U.S. Aggregate Index, along with additional diversification across sectors, maturities, and credit ratings (for suitable investors), which may potentially help mitigate the impact of rising interest rates on investors’ portfolios. Read more >
Negative Tax Consequences Often Result from Poor Rollover Knowledge
Unforeseen negative tax consequences often hit job changers when they decide to move money from their previous employers’ retirement plans without sufficient know-how; in an extensive new report, the GAO recommends employers and regulators provide far more support for plan participants. Read more >
Nearly Three-Quarters of Americans Value Guaranteed Income
The survey found that two primary reasons why people value guaranteed income are to cover health care costs (cited by 54%) and to prevent running out of money (46%). Fifty-two percent said they view guaranteed income as a hedge against a market downturn. Read more >
Social Security Optimization Can Extend Retirement Portfolios by a Decade
In an exclusive interview with Bill Meyer, founder and managing principal of Social Security Solutions in Leawood, Kansas, PLANADVISER hears about some serious shortcomings in the conventional thinking on Social Security claiming strategies—and a failure to coordinate these effectively with the drawdown of DC plan assets. Read more >
Social Security Can Be Understood, Maximized
Despite the 2,800 rules, benefits can be amped up with the right Social Security planning, says Financial Engines, which rolled out a planning service to help near-retirees maximize household income in retirement. Read more >
MOST POPULAR STORIES
‘Secure Act 2.0’ Likely to Become a Reality

Retirement Plan Execs Confident Senate Will Pass the Bill Into Law

10th Circuit Affirms Great-West Fee Suit Dismissal

The district court ruling in the case, now backed by an appeals court, stands out for having been filed alongside a sanction declaring the plaintiff’s law firm Schlichter Bogard & Denton behaved “recklessly.”

Scrutinizing TDFs and Considering Balanced Funds
Both options hold more than a trillion dollars in assets; weighing their relative merits remains an important task for advisers and their clients.
Seeing the Bigger QDIA Picture
Are custom solutions worth the effort? Is passive more appropriate than active? It all depends on the adviser and the client.
401(a) Plan Sponsor's Use of Asset Allocation Solution Challenged in Lawsuit

The suit says the solution directed participant contributions into high-cost investments.

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