Category Archives: Retirement

Retirement Plan Excessive Fee Lawsuit Reaches Supreme Court

The ongoing litigation in Tibble vs. Edison reached the Supreme Court recently in a dispute over the high cost of retail mutual fund share classes in 401(k) plan when lower cost institutional share classes were available.  The defendants argue that the statute of limitations alleging the fiduciary breach had expired. The case serves as a reminder that Plan fiduciaries should review plan investments each year to see if there are changes and if they are appropriate for the plan.  ...

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National Retirement Deficit is currently estimated at $4.13 trillion

As per EBRI's recent report, the aggregate national retirement deficit number is currently estimated to be $4.13 trillion for all U.S. households where the head of the household is between 25 and 64, inclusive. When the scenario in which prorata reductions to Social Security retirement benefits are assumed to begin in 2033 is analyzed, the aggregate deficit increases by 6 per-cent to $4.38 trillion. If Social Security retirement benefits are assumed to be eliminated in 2015, the aggregate defici...

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The Largest Wealth Transfer In History Is About To Begin

In the next thirty years, it is estimated that over $16 trillion will be transferred to a younger generation as the ultra-high net worth individuals (those with wealth in excess of $30 million in assets) pass their wealth on to their children.  Of this wealth, at least $6 trillion is expected to occur in the U.S. Most of those passing on their wealth will be first generation, or self-made individuals, or those that have little or no experience with wealth succession planning.  Without adequate...

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A Better Option Than Target-Date Funds

An article titled "A Better Option Than Target-Date Funds" written by Prateek Mehrotra, CIO of ETF Model Solutions and Endowment Wealth Management was recently published in the Industry Voices column on PlanSponsor.com. In the article, Prateek discusses the following drawbacks of TDFs: TDFs assume a "one-size fits all" and fail to take into account unique risk profiles and investment objectives of participants TDFs mechanical shift to conservative assets in later years sacrifices growth oppo...

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