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The American Student Loan Crisis – Plan Sponsor Solutions

The American Student Loan Crisis – Plan Sponsor Solutions

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At the end of each spring semester, millions of college graduates in the United States celebrate their college diploma in return for their hard work. With the hopes that their degree will bring a successful career, these graduates enter the workforce, often bringing with them tens of thousands of dollars in student loan debt. With 44.7 million Americans currently carrying an estimated $1.5 trillion in student debt, this financial burden will remain with many for decades. And as these graduates become part of the employee population of many companies, employers are now exploring their role on how they can assist with tackling this debt.

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Considerations for Selecting an Index Fund Manager

Considerations for Selecting an Index Fund Manager

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Index funds are passive investments that are designed to mimic the makeup and performance of an underlying market index, such as the S&P 500, at a reduced fee level. According to the Investment Company Institute (ICI), a Washington, D.C.-based mutual fund industry research group, 36% of households in 2018 who owned mutual funds owned at least one equity (stock) index fund. A total of 497 index funds in 2018 had in aggregate assets more than $3.3 trillion. $156 billion in new assets flowed into index funds in 2018 (according to the ICI factbook), distributed as follows:

  • 40% invested in world stock indexes (i.e. FTSE 100–London, Nikkei 225–Tokyo, etc.)
  • 37% invested in domestic stock funds (i.e. NYSE Composite, Russell 2000, etc.)
  • 23% invested in bond or funds made of hybrid indexes (i.e. world and domestic stock funds)

As index funds remain popular among all mutual fund investors, and have grown in usage within retirement plans, it is important to understand the motivation for investors to make these investments. It is equally important to understand what decision-making framework must exist to select an index fund manager to manage investor’s expectations, balancing returns and risks.

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Key Components of an Effective Retirement Plan Committee

Key Components of an Effective Retirement Plan Committee

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An organized, well-managed retirement plan committee is a key foundation of a successful retirement plan. Forming an effective retirement plan committee not only fosters more diverse ideas and opinions, but it also challenges the status quo to create and maintain a more thoughtful plan. For this reason, an important first step in fulfilling plan governance requirements is to establish and operate an effective retirement plan committee.

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Tips for Your Annual Retirement Plan Checkup

Tips for Your Annual Retirement Plan Checkup

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As a new year approaches, now is the opportunity for plan sponsors to review their retirement plans to ensure that they’re legally compliant and up to date. From increases in annual contribution limits to sweeping changes to the IRS regulations governing hardship distributions, an annual review should be conducted to even the most well-crafted plan. Read on for some helpful tips that can make your annual retirement plan checkup as streamlined and stress-free as possible.

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Keys to an Effective Financial Wellness Program

Keys to an Effective Financial Wellness Program

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Financial wellness is a topic receiving a greater amount of attention in recent years, but many plan sponsors are unaware of what that really means for their employees. Financial wellness is vital to ensuring employees feel secure about their financial well-being, helping them meet current, future and ongoing financial obligations. Additionally, financial wellness programs help maximize participation in the company’s retirement plan. While there proves to be many benefits by offering a financial wellness program, it is not yet universal. If it isn’t already, establishing a comprehensive financial wellness program should be a priority for plan sponsors. We review five key components to making your wellness program effective.

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