To Loan or Not to Loan?  As you re-evaluate your retirement plan’s design, consider asking yourself, “Should our plan continue allowing participants to take loans from their retirement accounts?”

If your retirement plan currently permits loans, you are not alone. According to the Profit Sharing Council of America’s (PSCA) recently published 55th Annual Survey of Profit Sharing and 401(k) Plans, loans are permitted in 88% of profit sharing/401(k) plans.  September 2013

Chances are that sometime recently you saw an ad for a product or service you had some interest in and it grabbed your attention.  Whatever it was, it intrigued you enough to do some research and find out if it really was a good deal.  After further investigation, maybe you realized the product or service wasn’t as good as you first thought.  Others were offering the same product for less, or including more bells and whistles for the same price.  Trying to figure out which deal is best can be confusing because no two offers are exactly the same.  Furthermore, if it’s something you don’t need at the moment you may find it easier to set aside and deal with later. As a plan sponsor, you’ve likely gone through a very similar experience.   August 2013

Though extremely useful, target date funds (TDFs) have always presented challenges in the retirement plan space.  They are a series of funds that gradually grow more conservative, exhibiting lower volatility, over time.  The year in the fund name is typically the date in which the participant is expected to retire (at age 65).  Despite their relatively short existence, target date funds are the most widely used investment in defined contribution plans today.  July 2013

Who knew that the Federal Reserve and the Central Banks of the world were so essential to healthy markets or unhealthy markets; or is it both? Years ago Central Banks labored in obscurity leaving the maintenance of a sound economic environment to their government’s fiscal policies, the ebbs and flows of the economy and global trade and industry innovation. Then, in the midst of the stagflation of the 1970’s, Federal Reserve Chairman Paul Volcker emerged to co-star with the fiscal authorities in the slaying of the “Inflation Dragon”. They have been Rock Stars ever since.  Newsletter 6-30-2013

What is the purpose of your retirement plan?  Ponder it.  If you responded, “To reward long term employees” or, “To help employees save for retirement,” we suggest you rethink this important topic.  If the purpose is to reward long term employees, you can simply provide a cash bonus.  Thought about differently, isn’t your healthcare program designed to maintain or improve the health of your employees?  Your retirement plan is only successful if it provides for a meaningful retirement.  June 2013