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By 401(k) Specialist Magazine
4.6
2323 ratings
The podcast currently has 101 episodes available.
ERISA attorney Allie Itami, Partner at Lathrop GPM in Minneapolis, joins the 401(k) Specialist Pod(k)ast to talk about the status of the Department of Labor’s beleaguered fiduciary rule in light of recent stay rulings in Texas, and also chimes in on ERISA at 50 before addressing compliance challenges presented by annuities in 401(k) plans.
And click here to check out a recent blog post from Itami about ERISA’s 50th anniversary, which will be celebrated with a gala event in Washington D.C. on Sept. 12.
Itami is a partner in Lathrop GPM’s Business Transactions Group, specializing in employee benefits and is known for providing comprehensive counsel on fiduciary compliance under ERISA and the Internal Revenue Code.
Key Insights:
Annuity Challenges in 401(k) Plans: The inclusion of annuities in 401(k) plans remains challenging due to issues with fiduciary liability, stigmas associated with annuities (such as high fees and lockups), and a lack of comprehensive safe harbor protections under current regulations.
Fiduciary Rule Delays: The Department of Labor’s fiduciary rule, which was set to take effect in September 2023, has faced delays due to court rulings. Compliance on the original date is no longer a concern for service providers due to legal stays, and the likelihood of the rule being implemented soon is minimal.
ERISA’s Evolution: ERISA has adapted over its 50-year history, moving from employer-centered benefit plans like pensions to more individualized retirement options such as 401(k)s and IRAs, reflecting shifts in workplace benefits.
Morningstar Retirement President Brock Johnson joins a special 100th episode of the 401(k) Specialist Pod(k)ast to provide an inside look and share insights into the past, present and future of the comprehensive retirement planning solutions and investment research unit.
Johnson talks about how retirement solutions and research have evolved over the years, what’s behind a host of recent innovations, and provides a glimpse into the future.
Key Insights:
Morningstar Investment Management LLC is a registered investment adviser and subsidiary of Morningstar, Inc. This recording is for informational purposes only and should not be considered investment advice. Opinions expressed are as of the date of recording; such opinions are subject to change without notice. The views and opinions of guests are not necessarily those of Morningstar and its affiliates. Morningstar Investment Management and its affiliates shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, the information, data, analyses or opinions or their use. Morningstar Investment Management does not guarantee the accuracy, or the completeness of the data presented herein. Firm data as of March 31, 2024. DC plan accessibility statistics available at https://press.aarp.org/2022-7-13-New-AARP-Research-Nearly-Half-Americans-Do-Not-Have-Access-to-Retirement-Plans-at-Work. Read more important disclosures here: https://www.morningstar.com/products/social-media-disclosures
The retirement landscape is undergoing a dramatic shift, characterized by unprecedented challenges such as increased longevity and unpredictable market conditions. Traditional retirement models centered solely on wealth accumulation are no longer sufficient. A more holistic approach is imperative to effectively manage risks, generate sustainable income, and ensure financial security throughout retirement.
To explain this transformation, joining us on the 401(k) Specialist Pod(k)ast are a pair of well-versed subject matter experts in Joshua Grass, CFA, Senior Strategic Accounts Associate at Allianz Life, and Todd Levy, Managing Director, RIA, with The Retirement Plan Company.
Josh and Todd share thoughts on how the landscape is changing, the new challenges emerging, how to adapt strategies that prioritize the creation of a sustainable income stream for retirees, and how to address participant concerns about retirement income planning.
Key Insights
Evolving Retirement Landscape:
Retirement planning is shifting from a primary focus on wealth accumulation to a more holistic approach emphasizing risk management and sustainable income due to increased longevity and demographic changes.
New Strategies for Retirement Income:
Industry experts highlight the importance of guaranteed lifetime income solutions, such as annuities, which provide stability and protection against market downturns, ensuring a reliable income stream throughout retirement.
Participant Concerns and Industry Response:
Many participants fear outliving their savings more than death itself. The industry is responding with services and products that offer personalized advice, inflation protection, and easy-to-understand income strategies, improving participants' financial confidence and retirement security.
Research cited in the podcast:
Allianz Life Insurance Company of North America does not provide financial planning services.
Allianz Life Insurance Co
It’s quite rare for one person to manage a large-cap mutual fund for a consecutive span of 25 years, but that’s just what Kevin C. Holt, CFA, chief investment officer, U.S. Value Equities at Invesco, is celebrating this summer.
Holt and Devin Armstrong, who have been co-lead portfolio managers for the Invesco Comstock Fund since 2007, apply a unique contrarian approach and classic value investing techniques.
Holt joins the 401(k) Specialist Pod(k)ast to share more about the approach, what he looks for in a value stock, and why 401(k) participants need a well-diversified portfolio to reach their retirement saving goals.
Key Insights
Disclosures
Not a Deposit | Not FDIC Insured | Not Guaranteed by the Bank | May Lose Value | Not Insured by any Federal Government Agency
All data provided by Invesco unless otherwise noted.
The opinions expressed are those of the author as of July 22, 2024. These comments should not be construed as recommendations, but as an illustration of broader themes. Forward-looking statements are not guarantees of future results. They involve risks, uncertainties and assumptions; there can be no assurance that actual results will not differ materially from expectations.
Diversification does not guarantee a profit or eliminate the risk of loss.
This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.
P/B (Price-to-Book): it compares the price of the stock with its book value (total assets minus total liabilities). It is commonly used for banks. P/S (Price-to-Sales): it compares the price of the stock with its sales (renevues) from the last twelve months. It is commonly used for companies that have losses. Price-to-earnings (P/E) ratio measures a company's share price relative to its earnings per share (EPS).
Enterprise value-to-sales (EV/Sales) is a financial ratio that compares a company's total value to its total sales revenue.
"The Art of the Answer" is an Invesco Global Consulting program and is for illustrative, informational and educational purposes only. We make no guarantee that participation in any programs or utilization of their content will result in increased business for any financial professional.
RFP = Request for proposal
Click to view full disclosure statement.
No matter how easy plan sponsors try to make it for employees to participate in their company-sponsored 401(k) plan, too many workers still aren’t enrolling.
Our guests on today have some ideas on dealing with this problem—centered on how instead of making it easy to participate, making it even harder to avoid enrolling in the plan in the first place.
Marc Howell and Felix Okwaning, who are both Managing Directors—Enhanced Plan Design at Principal Financial Group, share some great ideas on how to use a combination of automatic features including “auto-sweep” to boost enrollment and deferral rates, dramatically helping employees get adequately prepared for retirement.
Despite offering unique tax advantages, lots of people remain unaware of health savings accounts (HSA)—and even many who are using them aren’t using them to anywhere near their full potential.
Jeremy Keil, CFP, CFA, a retirement-focused financial advisor and host of both the Retirement Revealed Podcast and Mr. Retirement YouTube channel, joins the 401(k) Specialist Pod(k)ast to discuss the most common mistakes he sees people with HSAs making, as well as how to help correct these mistakes with strategies that make the most of their exceptional capabilities.
Key Insights Include:
Common HSA Mistakes: Many employees mistakenly believe they can only use the health savings account provided by their employer, limiting their options. Another prevalent error is confusing HSA contribution limits with FSA limits, resulting in underfunding their HSAs. Additionally, many fail to invest their HSA funds for long-term growth, missing out on the substantial tax advantages and investment potential HSAs offer.
Maximizing HSA Benefits: To rectify these mistakes, employees should be aware they can transfer their health savings account funds to any provider offering better terms. Maximizing contributions up to the IRS limits ($4,150 for individuals and $8,300 for families in 2024) is crucial. Investing health savings account funds similarly to a traditional IRA can significantly enhance their retirement savings, capitalizing on the unmatched tax advantages of HSAs.
Strategic HSA Management: Advisors recommend finding the best health savings account provider, considering factors like interest rates and investment options. Real-world examples show substantial gains from switching to high-yield HSAs and avoiding unnecessary fees. Proper management, such as keeping receipts for future reimbursements, allows for strategic use of HSAs, ensuring funds grow tax-free and can be utilized efficiently in retirement.
SEE ALSO:
• Checking the Pulse of the HSA Market with Devenir’s Eric Remjeske
• HSA Contribution Limits Increased Slightly for 2025
The DOL’s new fiduciary rule is scheduled to become effective in September, and retirement plan advisors and plan sponsors have plenty to do to prepare for the changes it will bring.
Jerry Schlichter, founding and managing partner of Schlichter Bogard LLC and a well-known pioneer of retirement plan excessive fee litigation, visits the 401(k) Specialist Pod(k)ast to share some important insights on the upcoming changes, legal challenges and what advisors need to be doing to prepare for compliance.
SEE ALSO:
• Fred Reish Unpacks the DOL’s New Fiduciary Rule
• Nine Insurance Trade Groups Sue DOL Over Fiduciary Rule
Health Savings Accounts can be a very effective tool not only to pay for out-of-pocket medical expenses, but also to save for retirement thanks to a unique triple tax advantage.
To check in on the pulse of the HSA market, we talk with the co-founder and president of Devenir Research Eric Remjeske, who is also a co-author of the semi-annual Devenir HSA Marketplace Research Report, recognized as the industry standard for tracking health savings account market statistics and trends.
We’ll cover the key findings from the latest report while also talking about some market growth projections, thoughts on why more people aren’t using them as a savings tool, and 2025 HSA contribution limits.
SEE ALSO:
• Health Savings Account Asset Growth Booming
The Department of Labor released its final “Retirement Security Rule” recently, which aims to raise the legal bar for financial advisors, brokers, insurance agents and others who give retirement investment advice.
Noted ERISA attorney Fred Reish Esquire, Partner at Faegre Drinker, shares his thoughts on some of the rule’s key focuses and changes, along with implementation questions and potential hurdles to the rule becoming effective in September.
Key Insights:
SEE ALSO:
There’s a trend happening right now where asset managers are using a new strategy to help 401(k) plan participants manage their retirement spending: Target date funds featuring annuities.
Morningstar recently did some really interesting research on this trend, and there are some compelling reasons to believe this type of solution could gain some serious traction in the coming years.
Jason Kephart, director of multi-asset ratings for Morningstar Research Services LLC, was a lead author of the new research, and he explains why annuities in target date funds are trending, who’s getting into this market, how it can help retirement plan participants, and some of the roadblocks that need to be overcome if it is to become a broadly adopted solution.
Certainly, here are the expanded key points:
To view the full Morningstar research, “Target Dates and Annuities… It’s Complicated,” click here.
SEE ALSO:
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