Tag: target-date funds

The program from GoalPath offers target-date funds that consider not just a participant’s age but other data, and it emphasizes retirement income over account balances.

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.

The study finds that participants who join plans with a TDF default contribute to fewer funds and are significantly more likely to choose only TDFs for their allocations.

While only 0.21% of balances were exchanged in May, it was the highest monthly activity so far this year, according to Alight Solutions.

With its fee reduction, 21 of the 22 Fidelity Freedom Index Funds will have total net expenses lower than comparable Vanguard index target-date funds, Fidelity says.

Nearly 90% of the days in the quarter saw net trading activity favor fixed income, according to the Alight Solutions 401(k) Index.

One of the ironies of surveys of U.S. workers’ retirement confidence is that improved economic conditions allow people to look towards the future, which can in itself cause greater financial anxiety.

While passive target-date funds (TDFs) dominate the defined contribution (DC) retirement plan market, Cerulli suggests that touting advantages of active TDFs could make plan sponsors reconsider.

A Vanguard analysis still finds both “pure TDF investors,” or those who hold only a single TDF, and “mixed investors”—investing in a TDF in combination with other investments (or, rarely, hold multiple TDFs). 

CIT-based solutions grew, while mutual fund-based solutions declined in 2018, according to Sway Research.

It was the slowest start to the year in the 20-plus years of the Alight Solutions 401(k) Index. 

With participants not panicking in Q4 2018 and the longer term trends resulting from automatic plan features, Fidelity Investments finds an overall improvement in average participant savings and account balances.

There were only three days of above-normal trading, according to the Alight Solutions 401(k) Index

The checklist is included in a guide that offers questions to ask and items to consider.

The retirement plan sponsor’s choice of a default investment should not reflect the full distribution of employee investor types, but rather those who would select it, a research report suggests.

Sixty-one percent of all participants surveyed by J.P. Morgan agreed with the statement, “If I could push an ‘easy’ button for retirement and completely hand over my retirement planning and investing to a financial professional, I would.”

A look at actively managed versus passively managed equity and bond funds, blended target-date funds, and with more sponsors encouraging retirees to remain in their plan, how defined contribution plans need to address retirement income solutions.