As an employer, you face a challenge: attracting and retaining the right talent is necessary to drive your business forward. At the same time, you likely feel a responsibility to help your employees achieve retirement financially prepared. Your 401(k) plan can help manage both of these goals.
Keeping an eye on the latest trends and tactics in the 401(k) arena is one way you can keep your plan competitive. Let’s take a peek into defined contribution plan design and activities across a wide variety of industries and company sizes, with data drawn from a recent survey.
The financial world is full of complex topics and concepts. Getting on a path towards financial freedom however is fundamentally simple. Following this golden rule will allow you the opportunity to establish a solid foundation where all of your other financial goals and ambitions can branch off of, become fruitful and multiply. The goal is to use this concept as a launching pad toward understanding the fundamentals around which everything else that impacts your financial wellness is built upon.
In Fiduciary Fitness Part 1, we talked about the roles and responsibilities of a fiduciary. In this article, we’ll dive a little deeper and talk about the kinds of fiduciary duties that can be outsourced, what that means, and what your role is.
Let’s start by being very clear – if you are a fiduciary, you can never fully delegate your responsibilities. Even if you hire a professional to manage every aspect of the plan, you are still ultimately responsible for making the decision about who you hired and retained to provide those services. With that said, you can receive a lot of help from professionals in a number of different respects.
There are different kinds of fiduciary help, identified by ERISA Code Sections. The three most common are ERISA 3(21), ERISA 3(38), and ERISA 3(16). Let’s take a closer look.
We hear time and time again to start investing early, do it often, and do it more. While this is true, it is important to take note of four key things before you decide to start your investment journey. Once you have these four things taken care of; Start early, do it often, and do it more!
Fiduciary duties can be confusing, and there are so many legal terms used that aren’t always intuitive. If you’ve asked any of the following questions, you are not alone.
Our goal is to help you begin to untangle this web and move toward a better process within your company.
Keeping your accounts current, lowering your credit usage, and fixing errors on your credit report can have maximum and immediate impact on your credit score.
Your credit score makes your financial world go round. It is the standardized way that the financial world determines if you are a financially responsible person. The more responsible they determine you are, the less risky you seem and, as a result, the less interest you will typically have to pay and vice versa.
What is the benefit of a solid credit score?
There are many. For starters, lower interest rates on personal loans, mortgages, credit cards, and insurance policy rates. In addition, it can eliminate the need for security deposits and even help you get that job that you’ve been aiming for.
Presenting the LPL Research Midyear Outlook 2018: The Plot Thickens, packed with investment insights and market analysis to guide you through all the action we may see in the year ahead.
When we as investors began 2018, we were tuned in to the recent fiscal policy changes that were expected to propel economic activity and the financial markets higher in the coming year. The handoff in leadership from monetary policy to fiscal policy was well underway as a driver of consumer spending, business investment, and corporate profits. Instead of depending on the Federal Reserve (Fed) to move this expansion forward, fiscal incentives are now critical for continued growth, with the new tax law taking the lead.
Looking ahead, Vanguard researchers estimate that 77 percent of the participants on the firm’s recordkeeping platform will be invested in a single target-date fund (TDF) by 2022.1 Furthermore, nearly 90 percent of all new 401(k) plan contributions will be in TDFs by 2020.2 As a result, it is imperative that 401(k) plan fiduciaries have a proper process in place. By leveraging the following best practices, plan sponsors can apply the Department of Labor’s tips to properly manage the TDFs on their platform and strive to fulfill their fiduciary duties.
Many people lack the will, skill, or time to properly manage the investments in their retirement plan accounts. Target date funds provide a simple way to have access to a portfolio that diversifies asset allocation and is periodically rebalanced to reach a progressively conservative asset mix as the participant approaches retirement. This simple explanation, however, does not go far enough in explaining the many differences that target date funds have. In other words, not all target date funds are created equal, which is why further guidance is needed to ensure the obligations of plan fiduciaries can be properly met in respect to these investments.
Goals give you focus. To find and establish your investing and saving goals, first ask yourself what you want to accomplish. Do you want to build an emergency fund? Build college savings for your child? Have a large retirement fund by age 60? Once you have a defined motivation, a monetary goal can arise.
It can be easier to dedicate yourself to a goal rather than a hope or a wish. That level of dedication is important, as saving and investing usually comes with a degree of personal sacrifice. When you dedicate yourself to a saving/investing goal, some positive financial “side effects” may occur.
Among retirement industry trends to watch in 2018, along with how to save money in a 401(k) plan and other retirement accounts, is how to spend those savings.
A retirement industry think-tank expects a growing number of plan sponsors and industry stakeholders to evaluate retirement income solutions and de-accumulation strategies for DC plans. The expectation is that, with the growing impact on the workforce of an aging population, increased emphasis will be placed on the distribution of plan assets.
GRP Advisor Alliance is an independent network of retirement plan focused advisors. GRP Advisor Alliance is not affiliated with or endorsed by LPL Financial. LPL Financial and Financial Finesse are not affiliated entities.
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