…unemployment rate remained low (4.6%). Meanwhile, the Federal Open Market Committee raised the target range for the fed funds rate by 25 basis points, to 0.50%-0.75%, and indicated additional tightening over the next year. Equity Markets Equity markets were mixed in Q4 with the U.S….
…3.7%. The housing market softened, as year-over-year home sales were flat, while year-over-year home price increases slowed to a 5% growth rate. The Federal Reserve (the “Fed”), in December, raised the federal funds rate target by 25 basis points to a range of 2.25-2.50%. This…
…comply with these rules in operation, with differing effective dates. Sponsors of defined contribution plans were already required to formally adopt separate amendments (where applicable) over the last several years to demonstrate good faith compliance with some provisions of these rules. Plan sponsors have different…
…the potential growth of your 401(k) account is stunted – whatever funds you have taken out of your 401(k) are no longer growing as they should. Keep in mind, too, that participants can reduce or even stop contributions to their 401(k) as they try to…
…continue to grow until 2019 but program costs are projected to exceed income in 2020, with the trust funds expected to be depleted by 2033. Once that occurs, annual revenues from payroll taxes are projected to cover only three-quarters of scheduled Social Security benefit payments…
…stock funds, bond funds, and fixed-income funds? Should you go with one type of fund, or diversify? Additional data and information included in The Millennial SmartPath™ can help take the mystery out of – and, most importantly, encourage changes in behavior towards – saving for…
…401(k) funds over to an Individual Retirement Account (IRA) – something that some advisors encourage, but which we do not. Our reasons are manifold. Perhaps the most basic one can be filed under “forgetfulness.” When rolling 401(k) funds into an IRA, if the assets are…
…Roth. With a traditional 401(k), employees contribute pre-tax earnings to their retirement plan, where the funds are allowed to be invested in various options made available in the plan. Only when a withdrawal is made from the account does the participant have to pay taxes…
A blog by Rich Rausser, CPC, QPA, QKA, Senior Vice President, Pentegra Retirement Services – October 14, 2015 Regular readers of my blogs are well aware that I often address strategies for amassing the funds during one’s active working years that are needed for a…
…to review and potentially change any funds that are QDIAs. So what should you be doing now? Review your current investment selection and determine whether or not your plan contains any investment funds that have been selected based on non-pecuniary factors. Action will need to…
…can be a relatively simple exercise.. These online calculators commonly use factors such as current age, household income, and current retirement assets to develop an annual retirement savings target. Usually included in the results is a “desired income replacement rate,” which is the percentage of…
…assets and maintain personal data on participants, which can make them tempting targets for cyber-criminals. Plan fiduciaries have an obligation to ensure proper mitigation of cybersecurity risks. Key Items Responsibilities to manage cybersecurity risks Retirement account online basic rules to reduce the risk of fraud…