401(k) Specialist Issue 1 - 2022 - 16

401(k) INVESTMENTS
an improvement over what came before, "
seeming to negate his point.
With this as a backdrop and playing
devil's advocate, we asked Lester what
target-date funds still need and what they
get wrong.
" I don't know that target-date funds are
getting much 'wrong,' " she responded, using
a relatable example. " I said this to my son,
who graduated from college three years ago.
He asked where he should put his money,
and I said a target-date fund. He asked
which one, and I said, 'Any target-date fund
is better than doing it yourself.' They're doing
a fine job, and they will do [a better job]
than him trying to day trade or forgetting to
rebalance or whatever. From that perspective,
I think most, if not all, do a good job. "
As for the former-what they still
need-she mentioned more sophisticated
investments that make a difference and
prove their worth net-of-fees. Especially in
a low-yield environment, they're increasingly
recognized as a way to optimize the
retirement portfolio.
" That said, there are challenges with
the complexity of selecting and managing
those providers, " she hedged. " That's where
" The integration
of that into the
glide path is
a tremendous
innovation. Now
that I'm one of
them, I've got to
make this money
last, so how do I
do it? It's a scary,
difficult math
problem, one
that even supersophisticated
investors
wrestle
with. "
I think the advisor and consultant community
can play a really big role. But also,
it's the prospective, 'Yes, it's worth the extra
fees.' When I retired from J.P. Morgan, its
collective trust series had significantly better
(and still does) net-of-fee performance, risk,
and Sharpe Ratio, yet plan sponsors still
struggled because it was a little bit more
expensive. There's this acute sensitivity to
the sticker price that, unfortunately, is still
driving some investment decisions. I think
that's a shame; I really do. "
" To versus through, " guaranteed income
and safe withdrawal rates are garnering a
good deal of industry attention, and she
pointed to J.P. Morgan's post-retirement
product, something on which she worked
just before leaving, as an example of what
excites her moving forward.
Called SmartSpending, it does just that,
and helps participants spend down the retirement
portfolio sustainably and efficiently.
" The integration of that into the glide
path is a tremendous innovation. Now
that I'm one of them, I've got to make this
money last, so how do I do it? It's a scary,
16
ISSUE 1 2022 | 401kSpecialist.com

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401(k) Specialist Issue 1 - 2022

Table of Contents for the Digital Edition of 401(k) Specialist Issue 1 - 2022

Table of Contents
401(k) Specialist Issue 1 - 2022 - Cover1
401(k) Specialist Issue 1 - 2022 - Table of Contents
401(k) Specialist Issue 1 - 2022 - 1
401(k) Specialist Issue 1 - 2022 - 2
401(k) Specialist Issue 1 - 2022 - 3
401(k) Specialist Issue 1 - 2022 - 4
401(k) Specialist Issue 1 - 2022 - 5
401(k) Specialist Issue 1 - 2022 - 6
401(k) Specialist Issue 1 - 2022 - 7
401(k) Specialist Issue 1 - 2022 - 8
401(k) Specialist Issue 1 - 2022 - 9
401(k) Specialist Issue 1 - 2022 - 10
401(k) Specialist Issue 1 - 2022 - 11
401(k) Specialist Issue 1 - 2022 - 12
401(k) Specialist Issue 1 - 2022 - 13
401(k) Specialist Issue 1 - 2022 - 14
401(k) Specialist Issue 1 - 2022 - 15
401(k) Specialist Issue 1 - 2022 - 16
401(k) Specialist Issue 1 - 2022 - 17
401(k) Specialist Issue 1 - 2022 - 18
401(k) Specialist Issue 1 - 2022 - 19
401(k) Specialist Issue 1 - 2022 - 20
401(k) Specialist Issue 1 - 2022 - 21
401(k) Specialist Issue 1 - 2022 - 22
401(k) Specialist Issue 1 - 2022 - 23
401(k) Specialist Issue 1 - 2022 - 24
401(k) Specialist Issue 1 - 2022 - 25
401(k) Specialist Issue 1 - 2022 - 26
401(k) Specialist Issue 1 - 2022 - 27
401(k) Specialist Issue 1 - 2022 - 28
401(k) Specialist Issue 1 - 2022 - 29
401(k) Specialist Issue 1 - 2022 - 30
401(k) Specialist Issue 1 - 2022 - 31
401(k) Specialist Issue 1 - 2022 - 32
401(k) Specialist Issue 1 - 2022 - 33
401(k) Specialist Issue 1 - 2022 - 34
401(k) Specialist Issue 1 - 2022 - 35
401(k) Specialist Issue 1 - 2022 - 36
401(k) Specialist Issue 1 - 2022 - 37
401(k) Specialist Issue 1 - 2022 - 38
401(k) Specialist Issue 1 - 2022 - 39
401(k) Specialist Issue 1 - 2022 - 40
401(k) Specialist Issue 1 - 2022 - 41
401(k) Specialist Issue 1 - 2022 - 42
401(k) Specialist Issue 1 - 2022 - 43
401(k) Specialist Issue 1 - 2022 - 44
401(k) Specialist Issue 1 - 2022 - Cover3
401(k) Specialist Issue 1 - 2022 - Cover4
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