I’m a big NBA fan, and I love those time traveling Kia commercials featuring Blake Griffin, the All Star forward of the Los Angeles Clippers.He’s in his Kia Optima and says, "Kia, take me back to 1992." There he meets himself and learns valuable life lessons. I can also imagine time traveling. Not with a … Continue Reading
The headline is a spin-off of a Mike Myers quote in the 2003 movie, View From The Top. Didn’t see the movie? A lot of folks didn’t since it only grossed $15,614,000 domestically and $3,912,014 internationally, totaling $19,526,014 worldwide. So let me fill you in. It’s about a young woman from a small town who … Continue Reading
Over to the right is Help!, the 1965 soundtrack album for the movie of the same name. It’s also the title song which begins: Help, I need somebody Help, not just anybodys Help, you know I need someone, help It’s my pop culture segue to important findings in a recent publication by the Employee Benefit … Continue Reading
Not quite two years ago, I blogged 1,200 employers to receive IRS 401(k) Compliance Check Questionnaire. My post discussed the letter and instructions that the IRS would be sending to 1,200 employers sponsoring 401(k) plans asking them to complete a 46-page 401(k) Compliance Check Questionnaire. According to the IRS, the purpose of the survey was … Continue Reading
No, this post isn’t about resolutions by hedge funds or currency traders. It’s finance of an individual sort: the results of the annual New Year’s Resolution Survey from Allianz Life Insurance Company of North America. The survey respondents said they are most likely to keep the following resolutions: Exercising and dieting: (44%) Managing money better … Continue Reading
The ultimate goal of a 40(k) plan should be, simply stated: to provide employees with an opportunity to have adequate income at retirement. But you need a starting point in order to establish objectives and then measure progress. In other words, a reference point by which you are able to navigate, not unlike the “you … Continue Reading
"It ain’t over till it’s over" is the famous quote ascribed to baseball Hall of Famer, Yogi Berra. In today’s political climate, we can stretch Berra’s quote to encompass "the Fiscal Cliff Deal". The formal name of which is the American Taxpayer Relief Act of 2012 passed by Congress on January 2, 2013. What the … Continue Reading
Back in the Day – the Day being as far back as the ancient Egyptian settlement of Buhen in 1860 BC – moats were excavated around castles and settlements as part of their defensive system. In today’s terms, we would call it “risk management”. So with some editorial license, I’ll use the moat metaphor to … Continue Reading
Today our firm and Mike Cavanaugh and Tim Webb, Registered Investment Advisors at Know Your Options, Inc., sponsored a special briefing for corporate attorneys on the new fee disclosure regulations impacting their clients. Our briefing at the University of Chicago Gleacher Center was provided to help them provide their clients with the guidance and strategies … Continue Reading
Don’t Worry, Be Happy, is, of course, the title of Bobby McFerrin’s 1988 hit song. Since then, it’s seeped into our culture. If you want to fully incorporate it into your life, you can download the ring tone. I’m suggesting, however, that it shouldn’t be the attitude of employers who have received 408(b)(2) service provider … Continue Reading
If you need a reminder that 401(k) participants need help in managing their accounts, then consider the recent Investing Sentiment Survey done by MFS Investment Management: 34% of investors feel overwhelmed by all the investment choices available to them. 25% put off decisions out of fear of making the wrong choice. 51% of Gen Y … Continue Reading
If you’re in and around the 401(k) world, you know who Chris Carosa, CFTA, is. And if you don’t you should. Most of us know him as a prolific author who is the Chief Contributing Editor of FiduciaryNew.com, a superb source of information and commentary about the fiduciary aspects of retirement plans. Chris now has … Continue Reading
Each year the Internal Revenue Service announces the cost-of-living adjustments applicable to qualified retirement plans for the following year. Unlike 2001 in which most limits did not change from the prior year, most limits increased: Following are the key retirement plan limits announced yesterday by the IRS: The 401(k) and 403(b) limit for employee contributions … Continue Reading
My blogging buddy security lawyer Bill Singer on his blog, Broke and Broker, An Irreverent Wall Street Blog (always a good read), posts frequently about investment scams and scoundrels. In one of his latest, Bill writes that Feds Bust Bank Guarantee Scam. But the Feds don’t have the manpower and resources to get to all … Continue Reading
Let me introduce you to the “ERISA Account”, a relative newcomer to the small 401(k) plan market. It’s been part of the large and medium plan market for some time. Only recently has it migrated down stream because of (yes, you guessed it) the increased regulatory emphasis and fiduciary attention to fee disclosure. Overview ERISA … Continue Reading
If you’re a Bon Jovi fan, you’ll recognize the expression in the headline, “The More Things Change, The More They Stay The Same”. But, of course, that’s not Jon pictured here. It’s Jean-Baptiste Alphonse Karr (November 24, 1808 – September 29, 1890), a French critic, journalist, and novelist, to who was attributed the epigram, “plus ça … Continue Reading
That’s the album cover of the original Broadway cast recording of the 1965 musical, On a Clear Day You Can See Forever (which subsequently went on to become a movie starring Barbara Streisand in 1970 and which will be returning to Broadway starring Harry Connick, Jr. this Fall). It’s the story of clairvoyant Daisy Gamble … Continue Reading
One thing you can say for sure about the 401(k) business, it’s responsive to the needs of the marketplace. Since the beginning of 401(k) plans in the early 1980s, 401(k) service providers have introduced an increasing number of services to stay competitive with other providers. We’ve seen the proliferation of such features as: Daily valuation … Continue Reading
With the increasing spotlight on fiduciaries and their responsibilities for ERISA plans, many employers are asking themselves whether it’s time to buy fiduciary liability insurance. With personal assets on the line for breach of fiduciary responsibility, there is no “one size fits all” answer. But, if you are a fiduciary considering fiduciary liability insurance, here … Continue Reading
A "T", or technical foul, is part of the game of basketball. If you’re a fan of the game, you know it’s any infraction of the rules which doesn’t involve physical contact such as unsportsmanlike conduct. The retirement plan equivalent of a "T" is when an employer misclassifies a worker in situations regarding whether: The worker is … Continue Reading
When I’m Sixty-Four is, of course, one of the classic songs by The Beatles, written by Paul McCartney (credited to Lennon/McCartney) and released in 1967 on their Sgt. Pepper’s Lonely Hearts Club Band. The theme is about aging with a young man singing to his lover about his plans of them growing old together. It was also one of … Continue Reading
Geraldine Ferraro who died yesterday at age 75 was a political trailblazer. She was, of course, the first woman named to a major-party presidential ticket when Walter Mondale picked her to be his Democratic party running mate in 1984. But while the Mondale-Ferraro ticket lost 49 out of 50 states to the Republican ticket of President … Continue Reading
Yes, it’s that time of year again when March Madness takes over many workplaces for the next three weeks. Outplacement firm Challenger, Gray and Christmas, Inc. estimates that employees will spend 8.4 million hours watching games from the office. But let’s not even consider the lost productivity issue. Let’s just compare it to the amount … Continue Reading
That 2% cut in Social Security taxes (from 6.2% to 4.2%) was supposed to stimulate the economy. But according to Martin Crutsinger’s and David Pitt’s recent article on Blomberg BusinessWeek, the tax cut has little impact on the economy in January. Consumers increased spending by only 0.2% in January, the smallest increase since last June. … Continue Reading