Millennials represent the largest generation in the American workforce today and two-thirds of them feel they’re not on track with their retirement savings. A recent survey of this age group (ages 23 to 38) cites the high cost of housing as the number one reason for not saving (37%). The next reason, trailing not too far… [Read More]
Target Date Funds – Why Are They So Popular . . . and Are They Right for You?
Thinking on this recently, I’ve noticed most of my 401(k) plan sponsors offer target date funds as an option within their company’s 401(k) plan. Many have somewhere between 50% and 70% of their total plan assets invested in this choice. Target date funds are comprised of equities, bonds, and other investments, and are geared to… [Read More]
401(k) Fees in the Spotlight
I recently held a special meeting with employees of a larger firm who wanted to learn about their company’s retirement plan fee structure and how these fees affect their savings. This is a hot topic for plan trustees and employees alike – meeting after meeting 401(k) fees specifically come into focus. While a plan’s investment… [Read More]
Plan Fiduciaries for Qualified 401(k) and 403(b) Plans – Are You One?
Let’s cut to the chase – a plan fiduciary must always serve in the best interest of plan participants and their beneficiaries, or risk facing some pretty severe fines and penalties. I spend a lot of time with clients discussing this topic. While we could take a much deeper dive, I’ve spared you from the… [Read More]
An End-Around on Hardship Withdrawal Rules
It seems we don’t need to wait anymore for major pieces of legislation in order to get changes made in 401(k) plans. The Bipartisan Budget Act passed back in February contained several significant changes in the laws surrounding hardship withdrawals. Hardship withdrawals are premature distributions that are permitted from a retirement plan typically for reasons… [Read More]
Court Ruling Throws Out DOL Fiduciary Rule
Don’t go requiring your financial advisor to be a plan fiduciary just yet! In a March 15, 2018 decision, the Fifth Circuit Court of Appeals struck down the Department of Labor’s (DOL) new fiduciary rule in its entirety. The rule, which became effective June 9 of last year, was due to be fully implemented on… [Read More]
Dodging the Tax Reform Bullet
There is a real retirement savings crisis brewing in this country. Many folks are simply not saving enough to pay all their expenses for 20 or more years in retirement. That is why it was alarming when some of the early proposals of the tax reform package that was recently passed included such disincentives to… [Read More]
Are Annuities a Viable Retirement Solution?
As more Baby Boomers close in on their ultimate retirement date, the dilemma of how to offer them choices for cashing out their retirement accounts becomes a pressing issue. I’ve seen many employers design their plans to pay out a lump sum only – leaving the retiree to figure out how to structure their income… [Read More]
HSAs – the Silver Lining for Your Employees
Open enrollment is knocking on the door once again and as we scramble to get ready we should be communicating to our employees the benefits of having a Health Savings Account (HSA). As the number of employers expected to offer an HSA-eligible health plan (either as an option or as the only option) continues to… [Read More]
At the Intersection of Retirement and Healthcare
When I meet a participant who has not saved enough for retirement, I often ask what is “Plan B” if they cannot continue to work for the rest of their life? After the usual jokes about winning the lottery or marrying rich, they are forced to admit that they don’t actually have a “Plan B.” The… [Read More]
