401k Advisors & Employee Benefit News
Benefit News by San Francisco 401(k) Advisors
While the term glide path may still be defined by Merriam-Webster as “the proper path of descent for an aircraft preparing to land”, 401k plan sponsors know this refers to a Target Date Glide Path. This is the process by which your 401k Target Date Investments gradually reduce their equity exposure as participants near retirement age. As currently designed, [...]
Investment Manager Style Analysis – what is it? Here’s a clear explanation of style analysis and the two reasons why investment manager style is critically important to 401k plan sponsors. Our Investment Due Diligence process places an important emphasis on an investment manager’s style, employing a technique called “quadratic optimization.” Quadratic Optimization” is a big [...]
Many participants and retirement plan sponsors are focused on their 401k investment choices. In today’s uncertain economy, people are trying to understand which 401k investment choices may be most appropriate. To help answer that question and to better understand the investments within a 401k plan, we can look to the recent credit crunch and recession. Recession & [...]
The 401k Investment Due Diligence report, a cornerstone deliverable to our plan sponsor clients, emphasizes investment style. In fact, 30% of an investment option’s score (which appears on our Scorecard) is style related. Investment style counts as much as what is derived from risk/return components. During a 401k investment style analsysis, we look at the average manager [...]
A recent study by the Investment Research Team at Retirement Plan Advisory Group found that there is a “skill” premium among the highest quality investment managers. Simply put, high quality managers typically have a higher average expenses than the average investment option. While these low cost investment options presumably have an advantage in outperforming their higher cost counterparts, [...]
Many 401k plan sponsors struggle to determine the “right” number of investment options in their Plan’s menu. Today, the retirement plan industry has evolved to the point where a complete portfolio may be obtained by purchasing a single investment option that either best matches a particular retirement date or the investor’s risk level. In many cases, [...]
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