I recently read a great article written by Ellen Lovejoy of Lovejoy Associates via 401khelpcenter.com. Please see below.
It may come as no surprise to you that your employees are anxious about financial issues such as spiraling healthcare costs, the rising price of energy, high-interest credit cards, and the current mortgage and credit crisis. You have good reason to be concerned.
Consider these stunning statistics: 74% of American workers have difficulty affording gasoline, 65% are experiencing problems affording heat and electricity, 50% are unsuccessfully grappling with increased grocery bills, 32% have no retirement plan other than Social Security, and finally 62% of the self-described “working class” portray their incomes as falling behind the cost of living. Pew Research Center 2007 and 2008.
..
To read more, please visit the Lovejoy/401khelpcenter article link.
Integrity Financial Corporation’s flagship 401k client is the Association of Washington Business (AWB) in Olympia. AWB is Washington state’s premier advocate for the business community and is recognized as The State’s Chamber of Commerce. This plan has a BrightScope Rating of 76, placing it in the top 15% of all plans in its peer group. www.brightscope.com
Integrity Financial Corporation helps business owners and individuals build a financial legacy through well designed executive compensation and retirement plans. Our clients can expect to receive personalized service and expertise, built on a foundation of trust. Call us at 425-454-1254 for the Seattle or Bellevue area, or at 1-800-794-401k.
Please visit our website at www.ifclegacy.com to have an independent fiduciary 401k advisor at Integrity Financial Corporation analyze and evaluate your company's 401k plan.
Wednesday, May 19, 2010
Tuesday, May 18, 2010
401k Automatic Enrollment -- What You Need to Know
I recently read a great article written by TRI-AD at 401khelpcenter.com. Please read below.
Based on current articles in both the popular and business press, it should come as no surprise that Americans are currently not saving adequately to fund their retirement. Legislators have become increasingly concerned, and with the Pension Protection Act of 2006 (PPA), they took action. Although many employers historically have had automatic enrollment, one of PPA’s provisions encourages employers to enroll their employees automatically in an employer-sponsored 401(k) plan without the employees’ written authorization.
The automatic enrollment feature is growing rapidly in popularity. Employers are adopting it for two main reasons:
• Employers are committed to raising 401(k) participation levels. Research shows that one of the biggest barriers to participation is inertia: employees mean to enroll but just don’t get around to it. Employers help employees overcome this inertia by automatically enrolling them in the plan.
The new legislation also provides an ERISA preemption to state laws that often prohibit employers from taking paycheck deductions without the employee’s written permission, as long as the provisions discussed below are met. The state preemption was previously a barrier to implementing automatic enrollment.
..
To read the rest of the article, please visit the 401khelpcenter article link.
Integrity Financial Corporation’s flagship 401k client is the Association of Washington Business (AWB) in Olympia. AWB is Washington state’s premier advocate for the business community and is recognized as The State’s Chamber of Commerce. This plan has a BrightScope Rating of 76, placing it in the top 15% of all plans in its peer group. www.brightscope.com
Integrity Financial Corporation helps business owners and individuals build a financial legacy through well designed executive compensation and retirement plans. Our clients can expect to receive personalized service and expertise, built on a foundation of trust. Call us at 425-454-1254 for the Seattle or Bellevue area, or at 1-800-794-401k.
Please visit our website at www.ifclegacy.com to have an independent fiduciary 401k advisor at Integrity Financial Corporation analyze and evaluate your company's 401k plan.
Based on current articles in both the popular and business press, it should come as no surprise that Americans are currently not saving adequately to fund their retirement. Legislators have become increasingly concerned, and with the Pension Protection Act of 2006 (PPA), they took action. Although many employers historically have had automatic enrollment, one of PPA’s provisions encourages employers to enroll their employees automatically in an employer-sponsored 401(k) plan without the employees’ written authorization.
The automatic enrollment feature is growing rapidly in popularity. Employers are adopting it for two main reasons:
• Employers are committed to raising 401(k) participation levels. Research shows that one of the biggest barriers to participation is inertia: employees mean to enroll but just don’t get around to it. Employers help employees overcome this inertia by automatically enrolling them in the plan.
The new legislation also provides an ERISA preemption to state laws that often prohibit employers from taking paycheck deductions without the employee’s written permission, as long as the provisions discussed below are met. The state preemption was previously a barrier to implementing automatic enrollment.
..
To read the rest of the article, please visit the 401khelpcenter article link.
Integrity Financial Corporation’s flagship 401k client is the Association of Washington Business (AWB) in Olympia. AWB is Washington state’s premier advocate for the business community and is recognized as The State’s Chamber of Commerce. This plan has a BrightScope Rating of 76, placing it in the top 15% of all plans in its peer group. www.brightscope.com
Integrity Financial Corporation helps business owners and individuals build a financial legacy through well designed executive compensation and retirement plans. Our clients can expect to receive personalized service and expertise, built on a foundation of trust. Call us at 425-454-1254 for the Seattle or Bellevue area, or at 1-800-794-401k.
Please visit our website at www.ifclegacy.com to have an independent fiduciary 401k advisor at Integrity Financial Corporation analyze and evaluate your company's 401k plan.
Monday, May 17, 2010
Leave 401(k) Advice to Fiduciaries: SPARK to DOL
I recently read a great article at mmexecutive.com written by Lee Barney. Please see below.
The SPARK Institute filed a comment letter Thursday on the Employee Benefits Security Administration’s proposed guidance on 401(k) investment advice. SPARK’s concern is Department of Labor’s attempt to define acceptable investment practices and theory, instead of leaving the decision on what type of advice to offer, be it computer- or adviser-based, to plan sponsors and administrators.
In essence, SPARK said, the use of historical performance in computer-based models will weaken fiduciaries’ confidence in avoiding liabilities or lawsuits, and have the unintended consequence of sponsors and fund administrators offering less advice, education and investment tools to workers. Instead, SPARK recommends that the plan fiduciary select what constitutes appropriate advice.
...
To read the rest of the article, please go to the mmexecutive.com article link.
Integrity Financial Corporation’s flagship 401k client is the Association of Washington Business (AWB) in Olympia. AWB is Washington state’s premier advocate for the business community and is recognized as The State’s Chamber of Commerce. This plan has a BrightScope Rating of 76, placing it in the top 15% of all plans in its peer group. www.brightscope.com
Integrity Financial Corporation helps business owners and individuals build a financial legacy through well designed executive compensation and retirement plans. Our clients can expect to receive personalized service and expertise, built on a foundation of trust. Call us at 425-454-1254 for the Seattle or Bellevue area, or at 1-800-794-401k.
Please visit our website at www.ifclegacy.com to have an independent fiduciary 401k advisor at Integrity Financial Corporation analyze and evaluate your company's 401k plan.
The SPARK Institute filed a comment letter Thursday on the Employee Benefits Security Administration’s proposed guidance on 401(k) investment advice. SPARK’s concern is Department of Labor’s attempt to define acceptable investment practices and theory, instead of leaving the decision on what type of advice to offer, be it computer- or adviser-based, to plan sponsors and administrators.
In essence, SPARK said, the use of historical performance in computer-based models will weaken fiduciaries’ confidence in avoiding liabilities or lawsuits, and have the unintended consequence of sponsors and fund administrators offering less advice, education and investment tools to workers. Instead, SPARK recommends that the plan fiduciary select what constitutes appropriate advice.
...
To read the rest of the article, please go to the mmexecutive.com article link.
Integrity Financial Corporation’s flagship 401k client is the Association of Washington Business (AWB) in Olympia. AWB is Washington state’s premier advocate for the business community and is recognized as The State’s Chamber of Commerce. This plan has a BrightScope Rating of 76, placing it in the top 15% of all plans in its peer group. www.brightscope.com
Integrity Financial Corporation helps business owners and individuals build a financial legacy through well designed executive compensation and retirement plans. Our clients can expect to receive personalized service and expertise, built on a foundation of trust. Call us at 425-454-1254 for the Seattle or Bellevue area, or at 1-800-794-401k.
Please visit our website at www.ifclegacy.com to have an independent fiduciary 401k advisor at Integrity Financial Corporation analyze and evaluate your company's 401k plan.
Friday, May 14, 2010
Key Republican May Push for Broader Fiduciary Standard
I recently read a great article written by Mark Schoeff at InvestmentNews.com. Please see below.
Collins' amendment to financial reform legislation in Senate could go beyond House provision
As Senate floor debate on financial regulatory reform begins, a key Republican senator could revive the push for a broad fiduciary standard for broker-dealers.
Sen. Susan Collins, R-Maine, plans to offer an amendment on fiduciary standards that could be more sweeping than a controversial proposal in a House bill passed last year.
An aide to Ms. Colllins said that specific language for a specific amendment has not yet been drafted. But at two hearings this week, Ms. Collins indicated that she may favor imposing fiduciary requirements on broker dealers for both retail and institutional investors.
...
To read the rest of the article, please go to the InvestmentNews.com link.
Integrity Financial Corporation’s flagship 401k client is the Association of Washington Business (AWB) in Olympia. AWB is Washington state’s premier advocate for the business community and is recognized as The State’s Chamber of Commerce. This plan has a BrightScope Rating of 76, placing it in the top 15% of all plans in its peer group. www.brightscope.com
Integrity Financial Corporation helps business owners and individuals build a financial legacy through well designed executive compensation and retirement plans. Our clients can expect to receive personalized service and expertise, built on a foundation of trust. Call us at 425-454-1254 for the Seattle or Bellevue area, or at 1-800-794-401k.
Please visit our website at www.ifclegacy.com to have an independent fiduciary 401k advisor at Integrity Financial Corporation analyze and evaluate your company's 401k plan.
Collins' amendment to financial reform legislation in Senate could go beyond House provision
As Senate floor debate on financial regulatory reform begins, a key Republican senator could revive the push for a broad fiduciary standard for broker-dealers.
Sen. Susan Collins, R-Maine, plans to offer an amendment on fiduciary standards that could be more sweeping than a controversial proposal in a House bill passed last year.
An aide to Ms. Colllins said that specific language for a specific amendment has not yet been drafted. But at two hearings this week, Ms. Collins indicated that she may favor imposing fiduciary requirements on broker dealers for both retail and institutional investors.
...
To read the rest of the article, please go to the InvestmentNews.com link.
Integrity Financial Corporation’s flagship 401k client is the Association of Washington Business (AWB) in Olympia. AWB is Washington state’s premier advocate for the business community and is recognized as The State’s Chamber of Commerce. This plan has a BrightScope Rating of 76, placing it in the top 15% of all plans in its peer group. www.brightscope.com
Integrity Financial Corporation helps business owners and individuals build a financial legacy through well designed executive compensation and retirement plans. Our clients can expect to receive personalized service and expertise, built on a foundation of trust. Call us at 425-454-1254 for the Seattle or Bellevue area, or at 1-800-794-401k.
Please visit our website at www.ifclegacy.com to have an independent fiduciary 401k advisor at Integrity Financial Corporation analyze and evaluate your company's 401k plan.
Thursday, May 13, 2010
Survey Suggests Gaps in Plan Sponsor Goals, Roles
I recently read a great article written by PLANSPONSOR.com. Please see below.
A new survey reveals a potential disconnect between plan sponsors and plan participants.
Employers still view retirement plans mainly as a benefit rather than as the primary means for their employees to support themselves after retirement, according to a new survey by Wells Fargo Institutional Retirement and Trust. Fewer than half (45%) say the “primary” goal of offering a retirement plan to their employees is to “provide employees with the means to achieve a financially sound retirement,” according to the report, while slightly more (51%) say the primary reason they offer a retirement plan is to “provide competitive benefits to attract and retain employees.”
Disconnect “Ed”
Asked why they think employees participate in a company-sponsored 401(k) plan, only about a third (30%) of employers say it is because they think participants want to save enough to retire comfortably. The most common response, cited by 42% of employers surveyed, was that employees participate in order to take advantage of the company’s 401(k) match.
..
To read the rest of the article, please go to the PlanSponsor.com link.
Integrity Financial Corporation’s flagship 401k client is the Association of Washington Business (AWB) in Olympia. AWB is Washington state’s premier advocate for the business community and is recognized as The State’s Chamber of Commerce. This plan has a BrightScope Rating of 76, placing it in the top 15% of all plans in its peer group. www.brightscope.com
Integrity Financial Corporation helps business owners and individuals build a financial legacy through well designed executive compensation and retirement plans. Our clients can expect to receive personalized service and expertise, built on a foundation of trust. Call us at 425-454-1254 for the Seattle or Bellevue area, or at 1-800-794-401k.
Please visit our website at www.ifclegacy.com to have an independent fiduciary 401k advisor at Integrity Financial Corporation analyze and evaluate your company's 401k plan.
A new survey reveals a potential disconnect between plan sponsors and plan participants.
Employers still view retirement plans mainly as a benefit rather than as the primary means for their employees to support themselves after retirement, according to a new survey by Wells Fargo Institutional Retirement and Trust. Fewer than half (45%) say the “primary” goal of offering a retirement plan to their employees is to “provide employees with the means to achieve a financially sound retirement,” according to the report, while slightly more (51%) say the primary reason they offer a retirement plan is to “provide competitive benefits to attract and retain employees.”
Disconnect “Ed”
Asked why they think employees participate in a company-sponsored 401(k) plan, only about a third (30%) of employers say it is because they think participants want to save enough to retire comfortably. The most common response, cited by 42% of employers surveyed, was that employees participate in order to take advantage of the company’s 401(k) match.
..
To read the rest of the article, please go to the PlanSponsor.com link.
Integrity Financial Corporation’s flagship 401k client is the Association of Washington Business (AWB) in Olympia. AWB is Washington state’s premier advocate for the business community and is recognized as The State’s Chamber of Commerce. This plan has a BrightScope Rating of 76, placing it in the top 15% of all plans in its peer group. www.brightscope.com
Integrity Financial Corporation helps business owners and individuals build a financial legacy through well designed executive compensation and retirement plans. Our clients can expect to receive personalized service and expertise, built on a foundation of trust. Call us at 425-454-1254 for the Seattle or Bellevue area, or at 1-800-794-401k.
Please visit our website at www.ifclegacy.com to have an independent fiduciary 401k advisor at Integrity Financial Corporation analyze and evaluate your company's 401k plan.
Wednesday, May 12, 2010
What is the End Game With Target-Date Funds; Retirement or Death?
I recently read a great article written by Jeb Graham at 401khelpcenter.com. Please see below.
An article recently published in a retirement plan industry journal addressed criticisms of the construction of Target-Date Retirement portfolios that are based on a "through" retirement approach. The term "through" retirement implies that the glide-path, the formula by which the portfolio's asset allocation rebalances over time, carries through retirement to death. This strategy is contrasted by the "to" retirement approach, in which the glide-path is designed to end, or become static, at retirement, as opposed to death.
The article responded to charges that most near-term (2010) target-date funds (TDFs) were much too aggressively invested in equities, and the harm caused to TDF investors in 2008 could have been avoided. The author, in his response, used universally accepted financial planning themes to support the conclusion that an individual's asset allocation at normal retirement date of 65 should be in the neighborhood of a 50% stock/50% bond mix, thus justifying a 2010 TDF with such an allocation. Maybe the bigger question is not really what percentage is allocated to equities, but rather, what is the end game, i.e. retirement or death?
....
To read the rest of the article, please go to the 401khelpcenter.com link.
Integrity Financial Corporation’s flagship 401k client is the Association of Washington Business (AWB) in Olympia. AWB is Washington state’s premier advocate for the business community and is recognized as The State’s Chamber of Commerce. This plan has a BrightScope Rating of 76, placing it in the top 15% of all plans in its peer group. www.brightscope.com
Integrity Financial Corporation helps business owners and individuals build a financial legacy through well designed executive compensation and retirement plans. Our clients can expect to receive personalized service and expertise, built on a foundation of trust. Call us at 425-454-1254 for the Seattle or Bellevue area, or at 1-800-794-401k.
Please visit our website at www.ifclegacy.com to have an independent fiduciary 401k advisor at Integrity Financial Corporation analyze and evaluate your company's 401k plan.
An article recently published in a retirement plan industry journal addressed criticisms of the construction of Target-Date Retirement portfolios that are based on a "through" retirement approach. The term "through" retirement implies that the glide-path, the formula by which the portfolio's asset allocation rebalances over time, carries through retirement to death. This strategy is contrasted by the "to" retirement approach, in which the glide-path is designed to end, or become static, at retirement, as opposed to death.
The article responded to charges that most near-term (2010) target-date funds (TDFs) were much too aggressively invested in equities, and the harm caused to TDF investors in 2008 could have been avoided. The author, in his response, used universally accepted financial planning themes to support the conclusion that an individual's asset allocation at normal retirement date of 65 should be in the neighborhood of a 50% stock/50% bond mix, thus justifying a 2010 TDF with such an allocation. Maybe the bigger question is not really what percentage is allocated to equities, but rather, what is the end game, i.e. retirement or death?
....
To read the rest of the article, please go to the 401khelpcenter.com link.
Integrity Financial Corporation’s flagship 401k client is the Association of Washington Business (AWB) in Olympia. AWB is Washington state’s premier advocate for the business community and is recognized as The State’s Chamber of Commerce. This plan has a BrightScope Rating of 76, placing it in the top 15% of all plans in its peer group. www.brightscope.com
Integrity Financial Corporation helps business owners and individuals build a financial legacy through well designed executive compensation and retirement plans. Our clients can expect to receive personalized service and expertise, built on a foundation of trust. Call us at 425-454-1254 for the Seattle or Bellevue area, or at 1-800-794-401k.
Please visit our website at www.ifclegacy.com to have an independent fiduciary 401k advisor at Integrity Financial Corporation analyze and evaluate your company's 401k plan.
Thursday, April 29, 2010
Death of the Generalist Broker in Retirement Plans
I recently read a great article written by Thomas B. Bastin at 401khelpcenter.com via a Twitter update by '401k_Fiduciary'. Please see below.
Specialization is the future of the financial services industry. The day of the generalist broker is quickly coming to an end. Complex financial products and legislation have made it difficult if not impossible for one-stop shopping in which a single broker can meet all of a client's personal and professional needs. No where will you find this more evident than in the ERISA plans such as 401k and 403(b).
In the past a stockbroker or insurance agent would develop an individual relationship with a company executive assisting them with a personal financial portfolio. The broker would then inquire as to what that executive's company was doing with their qualified retirement plan. The executive would agree to allow the broker to make a pitch for the business. The broker would call Joe Recordkeeper, who took him to lunch the week before, and together they would show up with Joe selling the plan sponsor on why their product was best suited to meet participant needs. There would be no independent analysis of product, services or costs. The product decision by the broker would come down to whether the product was approved by his broker-dealer and which wholesaler with an approved product was there when he needed to sell the client. This was (and in most cases still is) your typical retirement plan sales process: A conflicted recordkeeper pushing their proprietary investments and a glorified appointment setting secretary masquerading as a knowledgeable advisor.
To read the rest of the article, please go to the 401khelpcenter.com link.
Integrity Financial Corporation’s flagship 401k client is the Association of Washington Business (AWB) in Olympia. AWB is Washington state’s premier advocate for the business community and is recognized as The State’s Chamber of Commerce. This plan has a BrightScope Rating of 76, placing it in the top 15% of all plans in its peer group. www.brightscope.com
Integrity Financial Corporation helps business owners and individuals build a financial legacy through well designed executive compensation and retirement plans. Our clients can expect to receive personalized service and expertise, built on a foundation of trust. Call us at 425-454-1254 for the Seattle or Bellevue area, or at 1-800-794-401k.
Please visit our website at www.ifclegacy.com to have an independent fiduciary 401k advisor at Integrity Financial Corporation analyze and evaluate your company's 401k plan.
Specialization is the future of the financial services industry. The day of the generalist broker is quickly coming to an end. Complex financial products and legislation have made it difficult if not impossible for one-stop shopping in which a single broker can meet all of a client's personal and professional needs. No where will you find this more evident than in the ERISA plans such as 401k and 403(b).
In the past a stockbroker or insurance agent would develop an individual relationship with a company executive assisting them with a personal financial portfolio. The broker would then inquire as to what that executive's company was doing with their qualified retirement plan. The executive would agree to allow the broker to make a pitch for the business. The broker would call Joe Recordkeeper, who took him to lunch the week before, and together they would show up with Joe selling the plan sponsor on why their product was best suited to meet participant needs. There would be no independent analysis of product, services or costs. The product decision by the broker would come down to whether the product was approved by his broker-dealer and which wholesaler with an approved product was there when he needed to sell the client. This was (and in most cases still is) your typical retirement plan sales process: A conflicted recordkeeper pushing their proprietary investments and a glorified appointment setting secretary masquerading as a knowledgeable advisor.
To read the rest of the article, please go to the 401khelpcenter.com link.
Integrity Financial Corporation’s flagship 401k client is the Association of Washington Business (AWB) in Olympia. AWB is Washington state’s premier advocate for the business community and is recognized as The State’s Chamber of Commerce. This plan has a BrightScope Rating of 76, placing it in the top 15% of all plans in its peer group. www.brightscope.com
Integrity Financial Corporation helps business owners and individuals build a financial legacy through well designed executive compensation and retirement plans. Our clients can expect to receive personalized service and expertise, built on a foundation of trust. Call us at 425-454-1254 for the Seattle or Bellevue area, or at 1-800-794-401k.
Please visit our website at www.ifclegacy.com to have an independent fiduciary 401k advisor at Integrity Financial Corporation analyze and evaluate your company's 401k plan.
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