We all make mistakes in life. I can think of a few (hundred) I’ve made over the years.
No crystal ball? No problem. It may be possible to reach DB plan objectives regardless of interest rates.
Stop waiting on interest rates to manage DB risk and volatility!
A recent paper published by Principal Financial Group® says it can be possible. (PDF: 694 KB)
It’s a common belief that interest rates have nowhere to go but up. And because bond investments typically go down in value when interest rates go up, plan sponsors may be avoiding investments in bonds in favor of other options. As the duration – that is, the length of the maturity of the bond – extends longer, the larger the decline in the bond investment will likely be if interest rates increase. So plan sponsors that invest in bonds have generally been sticking to shorter duration bond investments.
If a plan sponsor feels interest rates will go up, should they avoid bonds – and in particular longer duration investments? According to this article, that is not necessarily the case. Read more
Change is difficult. And I’m not talking about the shirt I changed this morning because my wife said the buttons were holding on for dear life. No, I mean the kind of change that reinvents the very foundation we have grown accustomed to for so many years. The foundation that maybe we helped create and have used to thrive under for the better part of our careers.
We know it’s necessary. It’s the right thing to do.
Many believe we’re nearing a crossroads in the retirement services industry. Participants simply aren’t saving enough. And despite the bells and whistles each service provider is coming up with to support employee education, the reality is that if left to their own device, individuals are not making the necessary decisions to control their own retirement destiny. Read more
The first Thanksgiving was held in 1621 in Plymouth, MA. More than two-hundred years later (1863), President Abraham Lincoln created the national holiday that we now celebrate. For most of us, this is a joyous time to get together with family and friends to reflect on our blessings.
But, no one ever asked the turkey how he felt about the festivities. According to the U.S. Department of Agriculture, more than 45 million turkeys are eaten in the U.S. at Thanksgiving. The lesson for us: even in a celebration, there may be some that don’t share our enthusiasm.
Much has been made throughout 2013 about the three “arrows” of Japanese Prime Minister Shinzo Abe. While this deflation-fighting plan of monetary loosening, fiscal stimulus, and structural reforms has been broadly successful, I believe it will be the strength or weakness of the yen that will determine whether Japan’s economy emerges convincingly from its deflationary period in 2014.
If you haven’t already heard the news, taxes went up this year! For some, they went up a lot. The tax increases are from a combination of the American Taxpayer Relief Act of 2012 (ATRA) and provisions in the Patient Protection and Affordable Care Act (PPACA), which became effective in 2013.
While both of these tax laws have had their share of time in the limelight, I have found that many business owners and key employees are not fully aware of the impact of the changes, let alone taking action on what the changes mean.
The thought of leaving a legacy that can smooth the way for others, such as your children, is a great feeling. Sometimes, though, good intentions aren’t always enough. Without careful planning, a significant portion of your estate can be eaten up by taxes, tied up in probate court, or distributed to people other than your intended recipients.