Eyes on the Investment Menu
DCIO Execs Talk ‘Battle-Tested’ Investment Process
TIPs, emerging market equities and commodity-oriented investments are seen as safe hedges right now.
Congressional Chairs Ask the GAO to Review TDFs
They say the expenses and risk allocations in target-date funds vary considerably.
15th Anniversary of RPAY: Jania Stout
In the past few years, her practice has grown its assets by nearly $1 billion a year.
The Role of Guaranteed Minimum Benefit Riders in In-Plan Annuities
With some riders, participants can enjoy the upside of the market with downside protection.
Investors Fled to Stable Value, Money Markets in March
Stable value funds took in 64% of the inflows and money market funds, 24%, according to the Alight Solutions 401(k) Index.
AllianceBernstein to Close its Mutual Fund Target-Date Series
The investment firm will be shifting all of its focus to its CIT target-date series.
Employers Offer Diverse Range of 401(k) Investment Options
In 2016, the average plan offered 27 investment options, according to a report from BrightScope and ICI.
Nearly Half of Vanguard Plans Use Automatic Enrollment
At year-end 2018, 66% of new plan entrants were enrolled via automatic enrollment.
Retirement Plan Sponsors Increasingly Look for Low-Cost TDFs
This is driving providers to offer inexpensive options, such as series that rely on CITs and passive funds, Morningstar says.
Average 401(k) Account Balance Has Soared 466% in Past 10 Years
Fidelity analyzed the balances of those who remained invested in their 401(k) in the decade following the Great Recession of 2008 and found that the balances went from $52,600 to $297,700.
Average Deferral Rates Reach 10-Year High of 8.6%
And the use of 401(k) loans fell to a nine-year low of 22.5% in 2018, according to T. Rowe Price’s annual participant data benchmarking report.
Investment Support for Participants on the Rise
Employers are offering this assistance in a variety of ways, including managed accounts, target-date funds and investment advice, according to PSCA.
Most TDFs Are Actively Managed
More Efforts Needed to Increase Retirement Plan Participant Savings Rates
While automatic enrollment gets participants into plans, a sizable segment are starting their average contributions at a minimum 3.3% rate and failing to take any additional action to increase that, according to J.P. Morgan Asset Management.
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.
Workers in AB Retirement Confidence Survey Cite Desire for Income
Nearly half of workers feel confident about their retirement prospects, an AllianceBernstein survey found.
More Than One-Quarter of 401(k) Assets Are in CITs
Cerulli says retirement specialist advisers are becoming more knowledgeable about and comfortable with CITs, and the research firm expects CITs will continue to expand their share of 401(k) plan assets.
Participants’ Retirement Outlook Has Improved
Fifty-two percent think they will be able to retire at their ideal retirement age, and 52% say they either somewhat or strongly agree that their savings will last throughout their lifetime.
Most Millennials Have Appropriate Allocations
This is despite having lived through two bear markets.