PLANADVISERdash – August 3, 2022

Weekday news and analysis for retirement plan advisers

Wednesday, August 03, 2022

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PANC 2022

The Destination for Retirement Plan Innovators

When bad behaviors happen to good participants, it is usually because of timing, uncertainty or attention biases that cloud sound decision-making. During one of many innovative sessions, we will share practical strategies in plan design and participant education from the world of behavioral finance.

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Compliance

Booz Allen Hamilton, Others Face Passive TDF Performance Lawsuits

Unlike many other ERISA lawsuits, the complaints suggest the plan fiduciaries in question should have considered more expensive target-date funds that might have performed better.

Today’s Most Read

1.	IRS Life Expectancy Tables Updated for Retirees
2.	Meet Dave Barry, Professional Humorist and Pulitzer Prize Winner
3.	The Most ‘Outrageous’ ERISA Complaints Yet Filed?

IRS Life Expectancy Tables Updated for Retirees

The actuarial update is important for plan sponsor clients to note, but the effect to regular business is likely limited, as the individuals most affected are likely no longer employed by the plan sponsor.

Emergency Savings Preparedness and Perceptions

According to EBRI, workers with household incomes of $75,000 or more are more than twice as likely to say they feel they can handle an emergency expense than those with household incomes of less than $35,000.

Senators Raise Concerns About Bitcoin in Retirement Plans

Several U.S. Senators have sent a letter requesting answers from Fidelity on their decision to allow plan sponsors to offer participants exposure to bitcoin.

Market Mirror

Tuesday, the Dow fell 402.23 points (1.23%) to close at 32,396.17, the Nasdaq fell 20.22 points (0.16%) to 12,348.76 and the S&P 500 slipped 27.44 points (0.67%) to close at 4,091.19. The Russell 2000 was down 0.86 points (0.05%) to 1,882.45 and the Wilshire 5000 fell 207.17 points (0.50%) to close at 40,826.90.

The price of the 10-year Treasury note dropped 1 6/32 bringing its yield up to 2.753%. The price of the 30-year Treasury bond decreased 1 31/32 brining its yield up to 3.014%.

Industry Intel Roundup
Featured Webcasts

PLANADVISER is pleased to present the next edition of our Industry Intelligence roundup. This week, we are featuring webcasts sponsored by experienced providers in the industry. The content was created to educate, inform and offer ideas for plan sponsors regarding plan design, investing, administration and compliance.

PLANADVISER Webinar: CITs and Other Investment Vehicles

Research from firms like BrightScope and Cerulli Associates shows key defined contribution plan decisionmakers, including advisers and consultants, continue to favor collective investment trusts, largely due to their relatively low-cost structure and pricing flexibility. Today, 401(k) plan assets in CITs have eclipsed the $2 trillion mark, and the growth is expected to accelerate as more investors catch on and the DC plan product set develops. CITs already dominate the large plan market, particularly within target-date funds, data show, but many CIT providers have recently lowered their investment minimums and, in certain cases, waived them altogether. Cerulli’s reporting finds that those with low or no investment minimums are more tenable investment options for smaller plans—and that advisers can help promote stronger adoption down market, where higher investment fees remain a pressing issue. Investment vehicles such as exchange-traded funds and separately managed accounts are also a point of focus, with advisers and their clients seeking new ways to put their hard-earned assets to work. This edition of the 2022 PLANADVISER Practice Progress webinar series will take the pulse of the rapidly evolving marketplace of DC plan investments, featuring timely analysis from leading experts who have long known and embraced these “emerging” investment options. If you are a DC plan adviser who wants to know more about how to invest efficiently via CITs, ETFs and other investment types, you can’t afford to miss the discussion!

PLANADVISER Webinar: Managed Accounts

Sponsored by Betterment According to a recent Deloitte report, “The Rewards and Risks of Managed Account Programs in the Wealth Management Industry,” assets in managed account programs have grown by 117% since 2012, and they now make up a substantial portion of assets under management and a majority of new asset flows for the wealth management industry. Related analyses show the role of managed accounts has grown substantially within the defined contribution retirement plan space. Experts say this growth reflects a long-term industry trend away from commission-based brokerage offerings toward fee-based advisory offerings. While there are hurdles to greater adoption, many believe managed account programs are poised for continued growth, especially as more firms have announced plans to make them a strategic priority. This edition of the 2022 PLANADVISER Practice Progress webinar series will delve into the most important questions about managed accounts, such as: • How are they built? • How are they marketed and delivered? • How can they impact firm operations and client outcomes? Don’t miss this important discussion designed to help you achieve practice progress!

PLANADVISER Webinar – Financial Wellness

Sponsored by Betterment This has been a tough year for U.S. retirement plan participants—and for workers in general. Heading into the year, core inflation was already running above 5%, and it has only spiked since. At the same time, geopolitical events have injected fresh uncertainty into what was already a frothy market, and most retirement investors have experienced substantial reductions in portfolio values. Investment managers say the markets will continue to grapple with the trade-offs between inflation and growth for the foreseeable future.

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