A Guide for Globalizing DC Core Menus

By Alison Martier and Seth J. Masters At a time when plans are seeking to control risk and enhance returns, hedged global bonds can help improve outcomes for US defined contribution (DC) investors. Hedged global bonds have delivered better risk-adjusted results over time than US bonds. So how do we recommend plan sponsors incorporate global bonds, [...]

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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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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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New Fee Disclosures for US DC Plan Participants: Context Is Key

The US Department of Labor’s new 404(a)(5) fee-disclosure rules for defined contribution (DC) plans will provide participants with a lot more information on plan and investment fees—in plain language. That’s a good thing. But there’s a real risk that the new rule may unintentionally drive participants to make poor investment choices.

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