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Why Add ESG Funds to Your Investment Menu?

Why Add ESG Funds to Your Investment Menu?

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An increasing number of investors want impact-driven investment vehicles. They want to avoid investing in companies that avoid diversity and inclusion, abuse labor, produce products or provide services that cause health or safety problems, or pollute the environment. However, trying to bypass such companies can make investing in many mutual and index funds a challenge. Because of this, environmental, social, and governance (ESG) funds are increasing in popularity, especially among younger investors. According to a survey conducted by Callan Institute, incorporation of ESG factors into the investment decision-making process increased to 42% in 2019 compared to 22% in 2013. But is it cost-effective and a good fit to include ESG funds in your plan’s investment menu? Learn more about ESG and how you should proceed if you’re interested in adding ESG funds to your investment line up.

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The SECURE Act is Now Law

The SECURE Act is Now Law

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Although U.S. stock indexes are hovering at or near all-time highs, many American workers still aren’t financially secure enough to retire. In response, the Setting Every Community Up for Retirement Enhancement (SECURE) Act focuses on promoting lifetime income options like annuities within a 401(k) and incentivizing businesses to expand their retirement offerings like auto enrollment. The Act also liberalizes the existence of Multiple Employer Plans (MEPs) for plan sponsors to pool their investments and plan administration usually at a cost savings.

This Act officially became law in December 2019, marking one of the most comprehensive retirement reform packages employers have seen in years. What should plan sponsors and participants know about these changes?

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What Plan Sponsors Should Know About Lifetime Income Solutions

What Plan Sponsors Should Know About Lifetime Income Solutions

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The number of U.S. workers who are covered by a defined benefit pension plan dropped by nearly half between 1980 and 2008, from 38 to 20 percent, and continues to steadily decline. More employers have adopted a defined contribution plan, which shifts the responsibility of saving and making investment decisions to their employees. However, many participants underestimate how much they should have in retirement and can deplete their resources much sooner than planned. Thus, in the absence of a pension plan, the need for retirement lifetime income solutions is evident. What should plan sponsors know about adopting and implementing lifetime income solutions in their plan?

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Why You Should Hire a 3(38) Fiduciary

Why You Should Hire a 3(38) Fiduciary

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For many plan sponsors, designating an ERISA 3(38) investment manager to manage, select, and monitor the retirement plan’s investments can be beneficial. It allows the plan sponsor to have more time and attention to focus on other aspects of the organization along with managing tasks that are otherwise difficult to outsource. There are many benefits if you decide to hire a 3(38) fiduciary, but it’s important to understand the advantages (and disadvantages) of their role and the questions you should ask when vetting an investment advisor/manager to take on the role for your retirement plan.

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Millennials in Retirement Plans

Encouraging Millennials to Participate in Retirement Plans

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In 2016, millennials became the largest generation in the U.S. labor force with an estimated 56 million workers. Born between 1981 and 1996, millennials now account for more than one out of every three working Americans. Despite its size, this generation is often overlooked by plan sponsors due to their focus on the needs of those participants nearing retirement. Without retirement plans tailored to meet their own barriers, millennial workers struggle to save adequately for retirement. While an obvious roadblock may be lingering student debt, millennial would-be savers face several additional unique obstacles. This multifaceted struggle presents plan sponsors with both a challenge and an opportunity. To attract and retain the largest age group of U.S. workers, employers need to consider the unique needs of this generation in a retirement plan context. Read on to learn how to encourage millennials to participate in your retirement plan.

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