Happy Friday, readers! What can we say at this point about the Brexit? Not much, experts caution, but in some ways that’s exactly the problem. Uncertainty surrounding the UK’s surprising choice to leave the European Union is already ruffling the global equity markets, with the DJIA and S&P 500 indexes each shedding nearly 3% of their day-opening value at the time of this writing. With that in mind, our weekly roundup newsletter offers up some suggestions for helping plan participants understand and accept the necessary role of volatility in investing.
More than eight in 10 advisers polled by Eaton Vance report fear is the primary motivator for clients. Advisers can deliver major value by helping clients overcome their initial reaction to market headlines.
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It is critical for advisers to consistently underscore the benefits of buy-and-hold investing so that when fluctuations do occur, the rationale and unyielding approach to investing has been firmly set.
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It appears some last-minute amendments have largely removed controversial provisions from the Senate’s version of tax reform legislation that would have had a big impact on governmental 457 and nonprofit 403(b) plan sponsors.
The American Retirement Association says that tax reform could be a disincentive for small businesses to offer retirement plans; however, as one reader shares, there are counter considerations having to do with Roth 401(k) options that could mitigate some of the concern.