Showing entries with the topic “Investments”.
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Plan sponsors often have an unhealthy obsession with assembling the ideal array of plan investments. However, investment array selection, as well as the inherent agonizing over which funds to put on watch, which to replace, etc., should be relatively low on a plan sponsor’s list of priorities. Wh…Read more
In last week’s Top of Mind, we attempted to simplify the concept of revenue sharing in retirement plans. This week, I will attempt to build upon that by demystifying the even more elusive practice known as fee leveling. What is fee leveling? Last week, we explained how different …Read more
As I was preparing once again to speak about revenue sharing, I encountered my recurring fear that almost everyone was going to completely lost. Because, let’s face it, revenue sharing is NOT an easy concept to understand, and one about which most people do not care to learn! However,…Read more
In the world of 403(b), variable annuities have been a lightning rod for criticism by anyone paying attention. And, for good reason, with the caveat that there are some variable annuities offered by low-cost providers that shouldn’t be lumped in with the rest. However, in the large 403(b) p…Read more
Recently, we wrote a Top of Mind post about how the University of California (Cal) took the bold step of adding CITs to its 403(b) plans. For decades, CITs have been the sole domain of annuities and mutual fund products. As we noted, while it’s been known that CITs are a permissible inve…Read more
The University of California 403(b) Plan Changes: Can 403(b) Plans Now Invest in Collective Investment Trusts?
Robert Steyer of Pensions and Investments recently broke the story on the University of California becoming the first (of which we are aware) 403(b) non-church plan sponsor to offer collective investment trusts (CITs) in its 403(b) plan. This development was somewhat surprising, given the fact…Read more
I recently Tweeted my amazement at a ThinkAdvisor article that cited an Arizona State professor’s study indicating that only 4% of stocks in the history of the U.S. stock market (from 1926-2015) had lifetime returns that outperformed one-month Treasury bills over their lifetimes. Could this reall…Read more
You‘ve heard the same message from many people, including myself: due to the time-value of money, the earlier you start saving for retirement, the better off you will be when you retire. When building retirement wealth, the critical factor is the age at which you commence retirement savi…Read more
What if I told you that there is a fee present in mutual funds that is NOT included in the fund's published expense ratios and is often not publicly disclosed by the fund companies, since the SEC does not require its disclosure? You might laugh, but it is true. These added fees are known as tr…Read more
Two of our clients, the University of Massachusetts and the Oklahoma State University and A&M System, were selected by PLANSPONSOR as 2017 Plan Sponsor of the Year finalists. My colleague, Jeff Snyder, had the opportunity to discuss the initiatives that made them worthy of recognitio…Read more