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Aligning Plan Design with Client Goals

…They can have modest limits on contributions or can go up to multiple six figures in DB and cash balance plans. The key driver here is that unless a client is simply focused on the least expensive way to offer any sort of “retirement benefit,”…

Time to Get Serious About Your Retirement

…extra percentage point or two can really help boost your account’s balance years from now, when it really count. Rebalance your 401(k) plan investments. Resetting your asset allocation will bring your portfolio’s weightings back into balance. Remember: Simply splitting your portfolio evenly between various markets…

Maximizing an Owner’s Retirement Benefit

…it’s important to note that annual contributions to fund their results are mandatory, not discretionary. A Cash Balance plan is something of a hybrid. It has the mandatory provisions of a Defined Benefit plan, but provides an accumulated balance like a Defined Contribution plan –…

Danger: Don’t Touch

…retirement account. Retirement Account Balance at Age 30$8,000$8,000Withdrawal at Age 30$8,000$0Contributions Age 30-65$100 per month$100 per monthBalance at Age 65*$180,105$272,154Cost of withdrawing $8,000 — $92,049 *Assumes 7% average annual total investment return. Money will be taxed upon withdrawal. This is a hypothetical example with investment…

Can US Interest Rates Go to Zero?-An Update

cash and fixed income markets. In April, the Fed provided up to $2.3 trillion in aid, including loans and support to government and corporate bond markets. The Fed’s balance sheet has also increased in the past year, by nearly two-thirds, to over $6 trillion. Low…

Why Do Companies Buy Back Their Stock?

…the public; (b) using the cash to provide shareholders with dividends or one-time payments; (c) reinvesting the cash in their operations and capital expenditures; and (d) using the cash to pay down their outstanding debt. A company may believe that by buying back its shares…

How Trump’s Win Could Affect the National Retirement System

…tax reform, which means “flattening the rates and broadening the base.” Translation: deductions for retirement savings may be under attack. New comparability and cash balance designs for small business may go away. Deferral contributions may be forced to be Roth contributions and not deductible. This…

Understanding Asset Classes

…GICs (guaranteed investment contracts) and BICs (bank investment contracts), as well as money market securities (Treasury bills, notes and bonds that are soon to mature) and other “cash-equivalent” investments. The biggest risk associated with these funds is not earning enough to outpace inflation. Many investors…

Making Your 401(k) Continue to Jingle All the Way

…savers to consider dipping into their 401(k) for the “extra cash” that is “just lying there” to help cover those bills. But as you can probably tell by my use of quotation marks, your 401(k) should not be considered “extra cash”; nor is it “just…

The Ever-Expanding Role of the Federal Reserve

…participant with a huge balance sheet. According the Council on Foreign Relations and the Federal Reserve, the Fed’s assets have expanded from $739 million at the end of 2002 to $3.9 trillion as of January 2019 and has been as high as $4.5 trillion. Most…