Plan advisers can help 403(b) plan sponsors looking for downside protection, active strategies and target-date funds (TDFs) that can be used as a decumulation vehicle in retirement.
Despite a market “teeming with better-performing alternatives,” the plaintiffs say, Walgreen selected the Northern Trust Funds, which already had a history of poor performance.
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.
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.
This is driving providers to offer inexpensive options, such as series that rely on CITs and passive funds, Morningstar says.
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.
ProShares unveils ETF suite; TRPC adds Stadion StoryLine to retirement solutions platform, T. Rowe Price creates Dynamic Credit Fund.
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.
Sixty-four percent of participants in their 20s own a TDF.
Greg Porteous, head of defined contribution intermediary distribution at SSGA based in Boston, says he sees the lowering of target-date fund (TDF) investment fees as a way to attract more 403(b) plan clients for two reasons.