If you had an unexpected emergency expense of $400, would you be able to pay for it? If your answer is no, you’re not alone. Forty-six percent of Americans said they would have difficulty with an emergency expense of $400.¹ Furthermore, 140 million Americans have little or no savings at all.² With an emergency fund … More Do You Have an Emergency Fund?
Return-based style analysis (RBSA) draws from Bill Sharpe’s style analysis model, which stipulates that a manager’s investment style can be determined by comparing the returns on a portfolio with those of a certain number of selected indices. Through quadratic optimization modeling, RBSA is an effective way to test whether a fund maintains its professed style … More Returns-Based Versus Holding-Based Style Analysis
Many people use plan-level rates of return to determine the quality of an investment lineup. However, several variables may impact plan-level rates of return making them not as useful as a plan management tool. They may actually be counterproductive when trying to determine the quality of an investment lineup. As an extreme example, you … More Plan-Level Rate of Return—Useful or Useless?
For most employees, qualified retirement plans are a critical component of their retirement savings strategy. For others, qualified plans place restrictions on their utilization of such plans, so they have to look for other ways to save. That’s why employers often offer both qualified and nonqualified plans. Why are there two classes of plans, and … More Qualified Versus Nonqualified Plans
If you have ever opened a brokerage account with an advisor, you know the first step is gathering information to determine the risk profile and appropriate investment allocation for the individual. In order to determine the appropriate allocation for a client, financial advisors will inquire about income level, savings rate, net worth, time horizon, spending … More Target Date Funds—Does One Size Really Fit All?
1. Don’t cash out retirement plans when changing employment When you leave a job, the vested benefits in your retirement plan(s) are an enticing source of money. It may be difficult to resist the urge to take that money as cash, particularly if retirement is many years away. Generally you will have to pay federal … More Four Tips for Increasing Your Retirement Dollars
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 … More Benchmarks Are Not Created Equal
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 … More New Definition of Fiduciary
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 … More When Participants Retire, Should Their QDIA Retire as Well?
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 … More Fixed Income: A Sinking Ship or Much Ado About Nothing