Information for Plan Sponsors
At TWM we’re taking both a top down and a bottom up approach to the problem of retirement readiness. Our hope is that these combined approaches result in progress on the original mandate of 401(k) plans, and the ultimate goal of any retirement plan: retirement readiness through income replacement.
Understanding investor behavior is key to reining in the problem, according to investment expert Charles Ellis, who is someone we have a tremendous amount of respect for. Much of what he says will resonate with you as we focus on participant success measures in your plans.
This report from Vanguard Investments describes the steps taken by successful investment committees.
We've attached an Executive Summary covering the basics of the DOL's proposed rule on conflicts of interest in giving retirement plan advice. The new rule, designed to protect participants, seeks to define what advice will be subject to a fiduciary standard of care and under the purview of DOL enforcement.
This article describes a recent Supreme Court decision which requires plan sponsors and investment advisors to regularly review the investments within a retirement plan...
It is pretty easy to focus on what is wrong with our defined-contribution retirement system. Lots of employees still do not have access to workplace retirement plans. Fees can be too high, especially for workers at smaller firms. Sometimes employees face making complex decisions with relatively little guidance. Many of us do not save as much as we should for retirement. All of these things are true.
Any company that sponsors an investment plan as a benefit for their employees becomes a fiduciary, and has certain obligations to both the participants and beneficiaries of the plan. The individual employees that have responsibility for making decisions about the plan are also Fiduciaries. As a result, not only the company, but also the managers potentially have financial and legal liability for breach of fiduciary obligations...
The Employee Retirement Income Security Act (ERISA) defines the roles and responsibilities of various fiduciaries for defined contribution retirement plans. In this article, we will attempt to clarify what some people consider to be a confusing situation.
BrightScope and the Investment Company Institute recently collaborated to produce this report on the current state of 401(k) plans based on an analysis of over 35,000 plans in BrightScope’s database as of 2012 (the latest year available). As of 6/30/2014, of the $24 trillion of U.S. retirement plan assets, 401(k) plans comprised 18.3% or $4.4 trillion, as shown in the pie chart below.
Pop culture and investing rarely cross paths. After all, pop culture is hip, exciting, and flashy. Conversely, we’ve seen that successful investing is generally anything but. Nevertheless, the last decade or so has seen the rise of an internet meme that may be applicable to the investing world—“FAIL.”
401(k) Sponsors and participants share some common concerns: market risk, not saving enough for retirement and the impact fees may have on hard-earned savings. This brochure explains how index investing can help....