Benchmarks Are Not Created Equal

Because benchmarks are an important part of investment due diligence, a plan fiduciary should carefully consider their selection. Two of the most common are FTSE Russell¹ and Standard & Poor’s². The RPAG Scorecard³ utilizes Russell and here’s why: Russell ranks each company in the investable universe according to its total market capitalization. The market cap is the primary tool to determine where a company belongs … Continue reading Benchmarks Are Not Created Equal

New Definition of Fiduciary

As you are aware, in 2016 the Department of Labor (DOL) finalized regulations updating, and expanding, the definition of “fiduciary” in regards to the provision of investment advice. Originally these regulations were set to become applicable in April of this year. The current administration wanted to delay the applicable date to  allow the DOL to fully examine the impact of the new rules. As a result … Continue reading New Definition of Fiduciary

When Participants Retire, Should Their QDIA Retire as Well?

Many retirement plan sponsors are increasingly recognizing the benefits of allowing retired employees to leave assets in the defined contribution (DC) plan. This arrangement can be a win-win for both plan sponsors and participants. Fat retiree balances may improve plan economics, allowing plan sponsors to negotiate lower fees. And participants can take advantage of funds that are overseen by fiduciaries, often available at lower costs. … Continue reading When Participants Retire, Should Their QDIA Retire as Well?

Fixed Income: A Sinking Ship or Much Ado About Nothing

Time is a powerful modifier of perception and purpose. No need to look any further than the frequent rumblings surrounding fixed income in the current rising interest rate environment. That isn’t to say the frequently touted “bond bubble” and rising interest rate topics are unimportant or overstated, it’s merely a reaction to the volume and misappropriation of focus often exhibited in these ongoing conversations. Monitoring … Continue reading Fixed Income: A Sinking Ship or Much Ado About Nothing

Company Stock and Fiduciary Considerations

In recent years, there has been a substantial increase in litigation involving retirement plans that have invested in the stock of their sponsoring company. The only definitive way for plan fiduciaries to avoid liability with respect to plan investments in employer stock is to avoid such investments altogether. Nevertheless, many employers, believing that employer stock is beneficial to their plans, continue to maintain it as … Continue reading Company Stock and Fiduciary Considerations

Should a Retirement Plan Implement a Fee Policy Statement?

For the client who may be concerned about fiduciary compliance, a fee policy statement may give comfort. Like all other fiduciary actions, the value of this statement is a function of how well it is written (not too loose nor too tight) and how consistently a plan sponsor actually describes/practices the process documented. So, a fee policy statement can potentially create problems in addition to … Continue reading Should a Retirement Plan Implement a Fee Policy Statement?

Recruit, Retain, Retire – Reframing Financial Wellness

So much of the financial wellness conversation to date has focused on the potential health care cost mitigation of adopting organizations. A more effective angle, however, may come in the form of the company’s increased ability to recruit, retain, and allow a happier workforce to retire on time. This provides advisors with a unique way to address financial wellness and differentiate themselves with prospects. Wellness … Continue reading Recruit, Retain, Retire – Reframing Financial Wellness

Time to Reset Expectations

We are now in the eighth year of an equity bull market, making this the second-longest upswing in American history.¹ Additionally, the bond market has been in a secular bull market since 1982 as rates on the 10-year treasury fell steadily from above 14 percent to below 2 percent last year.² The recent strong returns we have experienced may be difficult to sustain due to … Continue reading Time to Reset Expectations