Education Archives | Page 12 of 21 | PlanPILOT

How Regulation Best Interest Could Impact Non-ERISA 403(b) Plans

Posted on August 17, 2018 by Editorial TeamLeave a comment

In April of this year, the Securities Exchange Commission (SEC) proposed a new set of guidelines to better govern relationships between professional financial advisers and broker-dealers and those of their individual clients. These suggestions, collectively dubbed Regulation Best Interest, could reshape the relationships between individual investors and the professionals who advise them by ensuring that a broader swath of those relationships requires the broker-dealer to act in the best interests of the client.

Less is More: 401(k)/403(b) Account Consolidation

Posted on August 7, 2018 by Editorial TeamLeave a comment

The healthy dynamism that has characterized the U.S. economy over the past decade has been a tailwind for businesses of all sizes. As with any period of change and expansion, however, there have been growing pains. Employee turnover has risen sharply in the past several years, and a tightening labor market looks set to exacerbate this trend for the foreseeable future. People have opportunities, and they’re increasingly willing to move to pursue them. The average baby boomer, to this point, has changed jobs 10 times since the start of his or her career. For millennials, that figure could approach 15 by the time retirement age rolls around. Read on to learn why plan sponsors should consider account consolidation.

The Increasing Growth of Fiduciary Advisors to Plan Sponsors

Posted on July 25, 2018 by Editorial Team1 Comment

Employer-based retirement plans are a major benefit to employees, especially in today’s job economy where 401(k) or 403(b) plans make up the majority of employee retirement savings. A 2018 survey from the Plan Sponsor Council of America found that 70 percent of companies retain an independent retirement plan advisor, which was 66.8% in the prior year. There are several factors that lead to this growth, such as overseeing the delivery of investment advice to participants by way of registered investment advisors (30.8 percent), certified financial planners (28.8 percent) or third-party web-based providers (20.2 percent). Let’s look at why companies hire plan advisors, why they should care, and tips to find the right advisor.

How to Gauge Retirement Plan Effectiveness

Posted on July 19, 2018 by Editorial TeamLeave a comment

Return on investment. Compound annual growth rate. Market outperformance. Preservation of principal. Risk adjusted performance. There’s no shortage of metrics available to retirement investors looking to gauge the success of their portfolio. It can be a bit more challenging – and more qualitative – for plan sponsors to gauge their plan’s overall impact on their organization and their participants’ ability to retire. It’s not easy to get a good sense of whether the 401(k) or 403(b) plan your institution offers stacks up favorably with employee expectations. With that said, however, it’s essential for sponsors to have a good idea of what makes their plan attractive (or not), how to measure it and the overall impact on employee satisfaction. Here’s how to start tracking your retirement plan – and its effect on the bottom line.

Plan Participant Education is Essential For Employers and Employees Alike

Why Plan Participant Education is Essential

Posted on July 10, 2018 by Editorial TeamLeave a comment

Plan sponsors have a responsibility to participants to make retirement plan offerings cost-effective, accessible, easy to understand, and risk managed. Their clearest goal is simple: help to ensure participants are prepared for retirement. Unfortunately, that has proven easier said than done. An alarming body of research by the Employee Benefit Research Institute suggests that many employees are not likely to arrive at retirement age in a secure financial position. Similarly, well over half of all participants in a recent survey failed a basic 401(k) quiz, and an almost equal number reported lack of confidence in their ability to choose investments. These figures are symptoms of a larger issue: financial ignorance. Plan participants often lack a solid understanding of what drives the success of their retirement savings, and increasingly, their unawareness is leaving them unprepared to leave work. Implementing plan participant education is key.