La Plus ca Change: Digesting Investing 2024
The more things change, the more they stay the same. It’s tempting to say that the key themes of 2024 for the investment profession were the same as for years past. You might even ask yourself, is it worth it to do a year in review? We think so.
Read MoreVolatility, Behavioral Finance, and Your Clients
Some analysts are making predictions for how the Trump Administration may impact retirement planning based on changes in personnel, others are focused on the changed regulatory structure. But one thing is for certain: the market may be volatile once again.
Read MoreSEC Leadership Change and Trendspotting
The SEC may be making news lately for its crackdown on cryptocurrency, but the real story may be how its agenda has been changing concerning enforcement actions. Here are a few things financial advisors should consider.
Read MoreIn a Marketing Pinch? Add a Dash of Menu Planning
Market costs have been putting many small financial firm owners in a bind. They may find themselves between the rock of needing to increase warm leads and the hard place of reducing costs. There is an answer, and it may be to borrow a popular trick from household management: meal prepping.
Read MoreHigh vs Wide: How Will the EBSA’s Budget Change its Enforcement Action Priorities?
Given the potential changes in regulatory power that could flow from the Supreme Court’s decisions in the summer of 2024, plan sponsors may be wondering if there might be changes in how the DOL enforces its regulations. But that might not be the right tree to go barking up. Instead, a key to understanding changes in enforcement actions could lay with its leadership and its budget.
Read MoreCommon Misconceptions in Retirement Planning: Time to Review
Plan Sponsors may want to consider addressing common misconceptions plan participants have when looking to planning educational resources. Three of the most common misconceptions in retirement planning are 1) budgeting only to prepare; 2) longevity missteps; and 3) amounts over accounts.
Read MoreNew and Newsworthy: A Review of 401ks and Company Retirement Benefits
Many Americans have access to retirement benefits through their workplace but may not know how to optimize these benefits. Sometimes, it’s helpful for plan sponsors to review the basics of just how those benefits work and what they mean. Here is a review of the news: both what gets media attention as well as new offerings by plan sponsors.
Read MoreBenefits Beyond the Plan: Interns, Habit Setting, and Retirement Readiness
Many employers have begun offering employee wellness benefits to their student and intern workers. Yet, some elements of those wellness programs, such as financial wellness components around retirement planning, may not be available to interns. Employers that are plan sponsors may want to help their participants with retirement readiness and may encourage early active participation in a retirement plan.
Read MoreEmotional Investing and Alternative Investments: Is Education the Answer?
The merits of alternative investments for many investors as appropriate vehicles for diversification can be reduced when decisions are motivated by emotional investing. While advisors are familiar with this dangerous dynamic duo, new approaches suggest that the risky mix of emotional investing and alternative investments may be harmonized by something as simple as education.
Read MoreIdentity crisis: Verifying Personal Details and Employee Form Fatigue
REAL ID is making it really hard to open new accounts. The change in identity verification requirements may only impact not yet enrolled plan participants. Yet, for participants who may be opening multiple accounts (such as those who’ve moved or younger participants) the increase in requirements could deter their interest in enrolling in benefits.
Read MoreRisk Horizon: New Tools for Monitoring and Managing Investment Risk.
Recent research released in June of 2024 by MFS Investment Management may reflect that the scope of risk is shifting. These concerns include administrative and regulatory changes as well as continuing concerns about retirement readiness of plan participants. These concerns about managing volatility and adjusting for potential litigation risks may have financial advisors considering their current offerings of investment monitoring.
Read MoreEnforcement Actions and Litigation: SEC Has a Tough Q2
Recent enforcement actions by the Department of Labor indicate an uptick in cases against profit sharing plans. Class action settlements show that plaintiffs continue to keep a watchful eye on retirement plan fee choices. A new report indicates that activist shareholder whistleblowers may be using more than 10% of the SEC’s enforcement budget.
Read MoreUnauthorized AI at Work and Cybersecurity Threats
A new report shows that a large percentage of employees are using AI at work, without their employer’s knowledge or approval. Unauthorized AI can create serious cybersecurity risks for those handling private financial information. Such use may also run afoul of the EBSA’s recommendations for retirement plan service providers.
Read MoreEBSA Enforcement Data: Are Enforcement Numbers Up?
Has the agency tasked with enforcing ERISA performed on the prediction of increased enforcement action under in the Biden Administration or did it focus on new regulations instead? We compared the first year of the new administration to last year to find out.
Read More“Have I answered All Your Questions today?”
One aspect of active listening that advisors may want to consider involves asking confirming questions. Yet, some business experts suggest avoiding the most common of those confirming questions: “Have I answered all of your questions today?” Here’s what advisors can do to think of how to adopt this phrase in their client communications.
Read MoreSupreme Court Weighs Power of Agencies Like the DOL to Impose Penalties without a Jury
Last Fall, we noted several cases before the U.S. Supreme Court that could impact the power federal agencies have to regulate and prosecute plan sponsors. Many of those cases are now working their way through the Court and may have profound impact on agencies such as FINRA, the SEC and the Consumer Finance Protection Bureau. They may also impact the Department of Labor and its investigative wing, the EBSA.
Read MoreMajor Overhaul of Financial Regulations Coming? Supreme Court Considers Chevron Change
Three major supreme court opinions may be coming soon that could have significant implications for financial advisors and they may not be the ones you’ve heard about. These cases may be more significant: they may reduce the ability of agency regulators to oversee, investigate, and fine financial advisors and institutions by changing a long-held rule deferring to federal agencies in their decisions.
Read MoreLuxury Lapses: Quiet Luxury and Prospect Clients
As 2023 ends, it may be that luxury brands are showing a lapse in both profit as well as sway on consumers. For financial advisors who look to track luxury brands in their marketing and advertising approaches, this could be an important trend to track. And it isn’t all negative.
Read MoreEmpowering Retirement Choices Among Plan Participants
Employees may be chafing from feeling forced towards action in other areas of their life that seems to be morality-based or “woke.” Will that discomfort translate into unhappiness with the actions of plan sponsors to encourage retirement readiness? Sponsors may have some options for how to continue incentivizing employees to enroll in retirement plans.
Read MoreOverseas Plan Participants Refresher
Events outside of the United States have been on everyone’s hearts and minds this fall. Plan sponsors may be concerned for their own families and loved ones, and also for their plan participants who have retired overseas. Nine million Americans live abroad, according to the State Department. Those living abroad may have two concerns when it comes to their retirement funds: bank account access and email.
Read MoreNew News: Substacks for Your Plan Participants?
If you’ve been following financial writers on other platforms for topics to cover in employee education sessions, it’s worth your time to consider what Substack writers have to offer. And, if you recommend accounts on your employee education pages, adding other sources with in-depth information may increase your employees’ knowledge base. We’ve picked a few we enjoy.
Read MoreCan’t Touch This: AI Can’t Beat the Human Touch
These days, artificial Intelligence is top of mind for almost any professional. Financial advisors are no exception. They have often had to justify how their work can’t be replaced by that of a robot. First, were robo-indexes. Then the algorithms. And now, artificial intelligence, specifically ChatGPT. But good news humans! AI makes for a terrible financial advisor. Here’s what you should know.
Read MoreRetirement Planning Education for Employees: Track and Stack
As Quarter 4 draws near, Plan Sponsors may be wondering how they can help employees capture the end of the year energy to plan for retirement. One of our new favorite ways is to combine a well-known method with a newer system: track and stack. Tracking habits and progress towards goals is a method known to help motivate employees towards goals. But habit stacking is a new method that is stirring up a lot of interest for its impact.
Read MoreCommunication Overload as a Compliance Problem.
On an individual level, communication overload can be a serious problem in terms of employee productivity and job satisfaction. On an enterprise level, communication can have serious compliance repercussions. Generic tips for using to-do lists and AI to sort your inbox don’t fully address the problem and its impact on decision-making.
Read MoreCommunications and Content Creation Series 1: Audit and Assess for Success
If the launch of a new platform rattles your marketing department, it may be because your firm’s communications plan is based too much on responding and less on a clear executable strategy. Through a series of articles, we make it easy to streamline your communications and content creation so that you can capture more leads and have a smoother pipeline of prospective clients.
Read MoreNew in FinLit: Concerns About Abusive Lending Policies?
Plan sponsors are increasingly offering financial literacy programs for their participants, including educating participants on their rights and the roles of consumer agencies. A new effort by the CFPB may cause confusion among participants seeking consumer loans. The history and impact of predatory lending may predict positive and negative impacts of the new policy.
Read MoreAuto-Enrolling Beyond 401(ks) and Regulatory Rules.
The balancing act most plan sponsors engage in to expand benefits, minimize costs, and remain within regulatory rules can feel like walking a tightrope. Over the last year, we’ve been looking at aspects of auto-enrolling employees in programs. Here, we look at the concerns around compliance.
Read MoreFinTech Trends and Cases That May Change Investor Behavior
In the tsunami of information and misinformation about FinTech and digital assets some information may get missed. Here are five topics worth paying attention to: 1) the SEC v. Coinbase case and defining securities to include digital assets; 2) the UCC and Blockchain; 3) open banking extensions; 4) AI for loan processing; and 5) AI for cybersecurity.
Read MoreSecure 2.0 Act – More Changes Coming?
The passage of the Secure 2.0 Act had major changes on many American’s retirement planning options. The process was complex, drawn out and not without its problems. Six months after it was made into law, analysts and lawmakers have noted a few key holes in the legislation.
Read MoreTemporary Relief? What to Consider When Turning to Temporary Workers This Season
Data from the Bureau of Labor Statistics (BLS) shows that employees are also continuing to quit in 2023 at a rate similar to 2022. Some employers turning to long term temporary employees to fill these gaps may be wondering if they can roll those into systems set up for seasonal workers in terms of benefits. Plan sponsors should exercise caution in that area. Here’s why.
Read MoreTime for a Referee? What Advisors Should Watch in Financial Coaching
Recently we noticed an absence of activity regarding financial coaching regulations and standards. What’s surprising about the lack of regulation on financial coaching is that the field has been growing significantly. Financial advisors may want to pay attention to this trend as their clients may benefit from coaching but due to lack of standards, coaches may be overstepping the goal line.
Read MoreCanada’s Pension Model Gains More Than Attention
The Canadian pension model is continuing to attract attention as word of its superior returns spreads. Are US pension funds ready to follow suit? Advisors working with institutions may want to review the Canadian model to be prepared for client questions.
Read MoreThe Tax Man Cometh, And He Brings Thoughts About Auto-Enrolling Savings Accounts
Plan sponsors contemplating changes to their auto-enrollment functions may want to pay attention to the rising number of folks using their tax returns as savings. Are Americans using their tax return as a default savings account? Auto-enrollment in savings for employees without an emergency account is a newer feature of some employee benefits dashboards and is not without criticism.
Read MoreBudgeting for Benefits Retention
Many plan sponsors and human resource professionals may have felt increasing pressure to expand their benefits. But with that pressure comes the tension of the expense of employee benefits. This conflict usually arises over the budgeting process. Yet, there are steps that HR professionals can take now to reduce budget tension.
Read MorePlan Fiduciaries, Custodial Rules, and Employee Education
New SEC custodial rules coupled with concerns over liquidity of custodians is a cocktail mix sponsors may want to send back to the bartender. A few key points to consider of how these two trends as well as how employee education about fiduciary duty may help ease concerns about custodial liquidity and bank failures.
Read MoreCybersecurity Inside and Out
Cybersecurity continues to be a going source of concern and cost for businesses. New thoughts on how to prevent internal cybersecurity issues can be combined with the EBSA’s best practices to help advisors increase their systems.
Read MoreAfter the After the Pandemic- Returning to Basics.
The key to calm successful clients may be a return to basics. While the familiar may seem simple, that doesn’t mean it’s without merit. Portfolio review, rebalancing, education, and life insurance should be top of list as the economy continues to meander.
Read MoreManufacturing May Change Benefits for the Better
Plan sponsors keeping an eye on trends in benefit plans and offerings may want to pay attention to a new field – manufacturing. Will development of new manufacturing across the U.S. change employee expectations for benefit plans?
Read MoreSECURE Act 2.0: Sponsors, Get Your Forms Ready
SECURE Act 2.0 may require a bit of work for plan sponsors and those who manage the administrative side of benefit plans. We sat down and discussed the new act with our experts. They noted three main areas sponsors may want to consider: hardship deduction tracking; changes that could significantly increase or decrease the number of participants (and by association, your costs); and how forms are worded and stored.
Read MoreA Round Up of Advisor Articles and A Few Predictions
For the last four or five years, every article seeking to review the past year’s events has summed up the previous twelve months as “a lot.” After so much unpredictability and turmoil in the markets, reading those future planning articles may seem less than fruitful. Yet, we still think it is important to take stock of what has happened in 2022 and look at what we think might be coming in 2023.
Read MoreAuto-Enrolling Seasonal Workers
Seasoning isn’t just for your stuffing. Instead, seasoning may be flummoxing your benefits team. Adding those workers can add a positive boost to morale but may be a nightmare for your administrative team. Here are three key considerations to discuss with your team.
Read MoreProjections and Statistics? How to Stay Up to Date
Projections for retirement and investment prospects for the last few years have been less than accurate. Aside from relying on professional groups and advisory sources like BCG, where can advisors turn to for reliable studies on investor trends and retirement data?
Read More“Financial Influencers”: Investing, Enrollment and Your Employees
There may be buzz around new laws on auto-enrollment’s impact on plan sponsors and their employees, but getting those employees to enroll and stay enrolled is still a pain point for many sponsors. If plan sponsors aren’t reaching their employees about the importance of saving for retirement, maybe there’s another option: social media influencers who post about personal finance.
Read MoreDon’t Walk Like a Duck: 3 Steps Advisors Can Take to Not Sound Like a Scam
With recession a looming possibility, there may be more fraudsters contacting the very people in your prospect pipeline. What may be worse is that fraudulent schemes have evolved to sound more like legitimate businesses. With the scammers stealing marketing methods from legitimate advisors, how can you make sure your marketing pieces don’t get confused with more nefarious folks?
Read MoreWorried About Market Volatility? Take a P.A.U.S.E.
It may seem like there is a lot of news about the stock market being volatile. If that’s got you concerned, here is an easy way to consider how you perceive the stock market and its fluctuations. Try taking a pause. Here are five things to remember about volatility that can help you position yourself appropriately and reduce your concerns.
Read MoreManage Meeting Mayhem
As the Wall Street Journal says, “Great meetings are small, fast, and don’t involve status updates.” So how can you get to great? Here are a few key tips.
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