Part Art, Part Science: Managed Account Due Diligence
A managed account program’s fees can be cut in half if it’s selected as a retirement plan’s default investment, although cost is just one of many important due diligence factors.
QDIAs Have Evolved. They Will Again After the Coronavirus.
Proactive Plan Sponsors Reap Benefits
Plan sponsors that fully automate their plans are more likely than others to believe their workers are on the path towards a financially secure retirement, J.P. Morgan found.
A Better DC Plan Core Investment Menu
Managed Accounts as the QDIA
Managed Account QDIA Mechanics Challenge Plan Sponsor Clients
Plan Sponsors Have Questions About Dynamic Default Investments
Retirement Income Options
Setting Defaults and Auto-Escalations Too Low May Undermine their Power
In addition, a person invested in a stable value fund versus someone invested in a target-date fund could end up with a balance as much as 59% lower, BlackRock says.
Another Survey Finds Saving for Retirement Is Employees’ Top Financial Concern
Monthly expenses are their second concern, The Standard found in a survey.
Americans’ Top Financial Concern is Retirement Savings
However, only 33% are confident about their retirement readiness.
Ups, Downs of Balanced Funds
GAO Says Changes in DOL Guidance on ESG Prevent Retirement Plans from Embracing It
In addition, data on ESG investing is also inconsistent, assessing ESG could increase plan costs, and many investors incorrectly perceive that ESG investing can lower returns.
BlackRock Calls for Expanding Access to Retirement Plans
One measure is to encourage MEPs by eliminating the “nexus” requirement.
Fidelity Debuts Personalized Planning and Advice Solution
According to Fidelity, the enhanced managed account solution combines a personalized digital experience, discretionary investment management, ongoing support and access to a team of professional planning consultants.
Selecting the Optimal QDIA
How Hearst Corp. followed a prudent process to choose its qualified default investment alternative.
DC Plan Sponsors Choose Long-Term Retirement Objectives Over Short-Term Risks
According to a T. Rowe Price study, 65% of defined contribution plan sponsors believe achieving the highest retirement income opportunity for participants is their greatest priority.
J.P. Morgan Retirement Leader Examines Sequence of Returns Risk in TDF Context
The latest though leadership from the firm asks an increasingly important question: “What should the TDF glide path look like as participants move from accumulating asset balances to spending down those balances in retirement?”
Firms Partner to Provide Customized QDIA for DC Plan Participants
Offered by Alight Solutions, WealthSpark combines highly customized investment portfolios designed by AllianceBernstein (AB) with Personal Capital’s digital wealth management tools.
Even Passive TDF Glide Path Designs Require Active Thinking
“There is no such thing as a passive glide path design, and this, as well as the many other active decisions that go into the creation and management of a TDF, can translate into meaningful differences in investment risks and results, even among passive TDFs,” observes Jake Gilliam at Charles Schwab.