‘Tis the season for “best of,” “most,” and of course, “naughty and nice” list making.  In this episode Nevin (Adams) and Fred (Reish) share theirs with regard to retirement plans.

In that holiday classic “Santa Claus is Coming to Town,”Santa is said to be “making a list and checking it twice…” all with the purpose of finding out “who’s naughty and nice.” Well, in this special holiday-inspired episode, Nevin and Fred share their lists.  So, who/what is going to wind up with a lump of coal in their stocking?

Here are our lists:

Naughty 

1. Surveys that promote bogus data to generate business for themselves.  Scare techniques generally, including by those who use surveys and studies to do that.

2. Frivolous lawsuits - given multiple chances to make their claim(s) - the forfeiture suits primarily (note:  some of that comes from apparent conflicts in the laws and regulations…for example, the IRS says that using forfeitures to offset contributions is possible, but the DOL says that, if left to discretion, it is a fiduciary duty that must be in the best interest of participants.

3. Social Security looming shortfalls left unaddressed - and everyone says it won't be a problem.  

4. The lack of any integrated fiduciary/institutional answer to retirement income. Although the steps taken, e.g., the SECURE Act, are “nice.”

5. The complexity of the laws governing qualified plans, especially when it comes to small employers.

Nice

1. Signs that people are saving more and better. Evidence in PSCA, Vanguard and Fidelity surveys.  The very low costs of saving through 401(k) plans as compared to retail (andpartially the plaintiffs’ attorneys who have contributed to that).

2. DOL backing plan fiduciaries on the forfeiture reallocation suit.  

3. More personalized target-date funds/managed accounts.

4. Pooled Employer plans (though keep an eye on themarketing and administration of these programs down the road).

5. Mandatory automatic enrollment for new 401(k) and 403(b) plans.

6. Retirement issues continue to be a bipartisan issue mostly). 

Episode Resources:

Misleading headlines/surveys

Talking Points: Third Time No Charm in ‘Forgotten Account’ Fantasy

Talking Points: IRA ‘Junk’ Bunk

No 'Magic' in These 401(k) Retirement Numbers

Talking Points: A Red Flag for a ‘Red Flag’ Report).

Social Security

'Nothing' Doing About Social Security?

Forfeiture Stuff

DOL Backs HP in Forfeiture Reallocation Suit Appeal

SECURE 2.0 and Retirement Income

SECURE Act and Guaranteed Income (Part 3) - Fred Reish

6 Obstacles to Retirement Income Adoption

PEPs

Nevin & Fred: Could a Predominant PEPs Prediction Prove Positive?

Automatic Enrollment

The SECURE Act 2.0: The Most Impactful Provisions (#1–Automatic Plans) - Fred Reish

The SECURE Act 2.0: The Most Impactful Provisions #13 — Starter 401(k) Plans and Safe Harbor 403(b) Plans - Fred Reish

Things I Worry About (6): Automatic Enrollment (5) and PEPs - Fred Reish