In Search of DC Solutions: Are Global Bonds the Answer?

By Alison Martier and Seth J. Masters Many US defined contribution (DC) plan sponsors are seeking solutions aimed at reducing undue volatility—excess volatility without a commensurate increase in return—that can prevent a plan and its participants from achieving their long-term objectives. Our research suggests that hedged global bonds may be one solution.

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DC Plan Sponsors Should Look Further than Their Own Backyard

By Alison Martier and Seth J. Masters US defined contribution (DC) plan sponsors large and small are seeking ways to help plan participants achieve better outcomes. Over the last 30 years, compelling evidence has accumulated that suggests currency-hedged global bonds may be an important part of the solution.

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Safe Harbor Is Safe for Secure Lifetime Income Default Investments

The new frontier in US defined contribution (DC) plans involves qualified default investment alternatives (QDIAs) with a secure lifetime income component. Will such vehicles retain their safe-harbor protections? Yes.

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Tips for Kicking the Tires on Target-Date Funds

The US Department of Labor (DOL) recently issued some tips to guide defined contribution (DC) plan sponsors when selecting a target-date fund as an investment option in their plan. The tips are sensible—one may be even a bit surprising. And they should probably be taken quite seriously, considering the source.

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The Next Step to Increasing DC Plan Participation

Defined contribution (DC) plans can deliver benefits only if workers choose to participate. Unfortunately, about one in every five eligible US employees chooses not to, according to research from Aon Hewitt.

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The Myth of the Nest Egg

For decades we’ve focused on the nest-egg notion as the goal for retirement saving, benchmarking our progress in relation to that lump sum. But it has no context other than probably being the single biggest “paycheck” most of us will ever see.

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The Road to Restoring Confidence in Retirement

We are optimistic that a bright future lies ahead for retirement, despite all the concerns that Americans feel today.

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Poof! There Goes the American Retirement Dream…Again

When it comes to planning for retirement, we’ve been setting US workers up to fail.

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Do Smaller DC Plans Need Advisors?

Many smaller US defined contribution (DC) plans rely on guidance from advisors, and the majority of these DC plan sponsors are happy they do so. But how do plans gauge whether they really need advisors, and assess the benefits against the cost of advice?

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What Can US DC Plans Learn from the Rolling Stones?

When it comes to constructing the perfect defined contribution (DC) plan, sponsors and participants both might benefit by taking a page from the Rolling Stones’ famous line: “You can’t always get what you want, but…you get what you need.”

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