Week ending August 11th, 2017

NOTE FROM THE EDITOR

Happy Friday, readers! This week’s news roundup features articles on investing. Active fixed-income allocations are moving into risky territory. Corporate funds posted the highest returns among institutional investors in the second quarter. While usage of Roth 401(k)s is still quite small, at 13%, the popularity of Roth 401(k)s is growing. Some plan sponsors are using both target-date funds and managed accounts as their qualified default investment alternative, moving older investors into the managed accounts. While managed accounts are customized for each participant, experts say they can be benchmarked against participant’s goals, such as when they want to retire or how much they want to save. We hope you find our coverage helpful and informative.

Editor's choice

Investing

False Sense of Security Surrounds Active Fixed-Income Allocations

Experts with Charles Schwab warn that a decade of generally stable credit markets has some investors feeling a false sense of security about “stretching for yield” within near retirees’ target-date funds. Read more >

Investing

Corporate Funds Post Highest Returns Among Institutional Investors in Q2 2017

Corporate funds saw a quarterly gain of 3.13%, compared to a median return of 2.88% for all plan types, according to the Wilshire TUCS. Read more >

Investing

Thirteen Percent of Workers Are Saving in a Roth 401(k)

This is up from 8% in 2011. Read more >

Investing

Hybrid QDIAs Can Help Preserve Retirement Income

DC plan sponsor clients can leverage both TDFs and managed accounts together to maximize outcomes. Read more >

Investing

Benchmarking Managed Accounts Against Participant Goals

Some industry experts believe managed account performance should not be benchmarked against an index but instead against an investor’s unique individual goals. Read more >

MOST POPULAR STORIES

Stimulus Bill Extends Some Provisions of the CARES Act

It also provides a way for retirement plan sponsors to avoid a partial plan termination.

Coronavirus Hardship Withdrawals, Taxes and Your Retirement Plan Clients

Coronavirus-related withdrawals made in 2020 were a financial lifeline for some, but they could also turn into a major tax headache for others.

Warn Your Clients: Don’t Abuse Coronavirus Hardship Withdrawals

Though retirement plans can allow individuals to self-certify that they qualify for a penalty-free coronavirus-related distribution, should the IRS discover otherwise during a future audit, a participant can be subject to substantial penalties.

The Most Common Retirement Plan Testing Mistakes

By alerting plan sponsors to the issues they see most often, advisers can help their clients navigate IRS testing rules.

The Pandemic Has Brought Advisers’ Succession Planning to the Fore

At the same time, more demand for financial advice has many retirement plan advisers looking to stay in the business

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