401(k) Specialist Issue 1 - 2023 - 32
401(k) PRODUCTS
The Retirement Crisis
Despite the fantastic stock and bond
market performances, most retirees have
very little assets because they have not
saved enough. The correction for this dire
circumstance lies in modifying investor
behavior, rather than risk taking as TDF
providers argue.
Savings plans have evolved to encourage
savings in a number of ways including:
* Auto enrollment
* Auto escalation
* Education
* Contribution matches
" Save and Protect " should be the mantra
of retirement savers. The Retirement Crisis
is real. People have not saved enough.
Getting people to save early and save a lot
is the first objective. Then protecting those
savings as retirement nears is the next step
in alleviating the crisis going forward.
Unfortunately, not much can be done
investment-wise for current retirees who
have under saved, but our society supports
the less fortunate elderly.
Target Date Accounts
TDFs are popular because they're simple
one-size-fits-all, set-it-and-forget-it approaches-they're
" one and done " decisions.
But one-size-fits-all causes them to be bad
fits for many participants, so the industry
has sought solutions to this problem.
One promising solution is target date
accounts (TDAs) that blend managed
accounts with target date glidepaths, where
several glidepaths are provided from which
non-defaulted participants can choose, and
participants are provided guidance in this
selection through education.
The QDIA remains one-size, but
non-defaulted participants can move to any
account on any glidepath anytime. Approximately
one third of the assets in TDFs are
from non-defaulted participants.
Graphic courtesy of Target Date Solutions
The Next 13 years after 2008
After the 2008 debacle, the next 13 years were a heyday for rewarding risk, so all was forgiven
and forgotten. There was no sequence of return risk (SORR) because stocks and bonds
always went up, with great reliability, but that all changed in 2022, when SORR once again
became a serious concern.
32
ISSUE 1 2023 | 401kSpecialist.com
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401(k) Specialist Issue 1 - 2023
Table of Contents for the Digital Edition of 401(k) Specialist Issue 1 - 2023
Table of Contents
401(k) Specialist Issue 1 - 2023 - Cover1
401(k) Specialist Issue 1 - 2023 - Table of Contents
401(k) Specialist Issue 1 - 2023 - 1
401(k) Specialist Issue 1 - 2023 - 2
401(k) Specialist Issue 1 - 2023 - 3
401(k) Specialist Issue 1 - 2023 - 4
401(k) Specialist Issue 1 - 2023 - 5
401(k) Specialist Issue 1 - 2023 - 6
401(k) Specialist Issue 1 - 2023 - 7
401(k) Specialist Issue 1 - 2023 - 8
401(k) Specialist Issue 1 - 2023 - 9
401(k) Specialist Issue 1 - 2023 - 10
401(k) Specialist Issue 1 - 2023 - 11
401(k) Specialist Issue 1 - 2023 - 12
401(k) Specialist Issue 1 - 2023 - 13
401(k) Specialist Issue 1 - 2023 - 14
401(k) Specialist Issue 1 - 2023 - 15
401(k) Specialist Issue 1 - 2023 - 16
401(k) Specialist Issue 1 - 2023 - 17
401(k) Specialist Issue 1 - 2023 - 18
401(k) Specialist Issue 1 - 2023 - 19
401(k) Specialist Issue 1 - 2023 - 20
401(k) Specialist Issue 1 - 2023 - 21
401(k) Specialist Issue 1 - 2023 - 22
401(k) Specialist Issue 1 - 2023 - 23
401(k) Specialist Issue 1 - 2023 - 24
401(k) Specialist Issue 1 - 2023 - 25
401(k) Specialist Issue 1 - 2023 - 26
401(k) Specialist Issue 1 - 2023 - 27
401(k) Specialist Issue 1 - 2023 - 28
401(k) Specialist Issue 1 - 2023 - 29
401(k) Specialist Issue 1 - 2023 - 30
401(k) Specialist Issue 1 - 2023 - 31
401(k) Specialist Issue 1 - 2023 - 32
401(k) Specialist Issue 1 - 2023 - 33
401(k) Specialist Issue 1 - 2023 - 34
401(k) Specialist Issue 1 - 2023 - 35
401(k) Specialist Issue 1 - 2023 - 36
401(k) Specialist Issue 1 - 2023 - 37
401(k) Specialist Issue 1 - 2023 - 38
401(k) Specialist Issue 1 - 2023 - 39
401(k) Specialist Issue 1 - 2023 - 40
401(k) Specialist Issue 1 - 2023 - 41
401(k) Specialist Issue 1 - 2023 - 42
401(k) Specialist Issue 1 - 2023 - 43
401(k) Specialist Issue 1 - 2023 - 44
401(k) Specialist Issue 1 - 2023 - Cover3
401(k) Specialist Issue 1 - 2023 - Cover4
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