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Beware the 'We're Number One' Trap

"All advisers want favorable publicity, but these so-called 'best of the best' lists raise a number of potential problems.... 'Barron's' disclosure that only those advisors who pay a fee are eligible for inclusion on their lists raises a number of issues for advisors named to such lists.... The [Investment Advisers] Act and the rules created thereunder all stress one point -- full disclosure of all material facts to clients. An advisor simply cannot say that they are a 'Barron's Advisor' of that they are a 'Top 100 Advisor' without making the disclosures required by the [SEC's 1998] DALBAR no-action letter."

Retirement Plan Providers Are Missing the Digital Mark

"[D]uring the past year, the percentage of retirement investors classified as financially healthy has dropped to 47% from 60%.... At the same time, overall satisfaction with their retirement plan's digital experience declined.... Just over a third of investors say they can manage their accounts digitally without contacting customer service. And only 22% say retirement plan websites and apps offer proactive guidance and help[.]"

Target-Date 2020 Funds Did Well in 2020. Here's Why.

"For anyone who had been contemplating retiring in 2020, the first quarter couldn't have been easy. Stocks fell 34% in 23 days ... As of Dec. 31, 2020, the average return of a vintage 2020 target-date fund was 10.8%, one percentage point lower than the 11.7% return for a balanced fund with a 50% to 70% equity allocation ... In the first quarter, 2020 target-date funds overall fell 10%, on average."

'Bridges' to Maximize Social Security Benefits Should Be Built Into 401(k)s, Researchers Say

"Retirement researchers recently have been touting the benefits of a so-called bridge strategy, whereby retirees front-load withdrawals from 401(k) plans and individual retirement accounts to delay claiming Social Security. For each year that a person delays claiming up to age 70, his monthly Social Security check goes up 7% to 8%.... This new idea ... calls on 401(k) plan sponsors to introduce a default 'bridge fund' into 401(k) plans that would use fund assets to deliver automatic monthly payments to anyone who retires in their 60s at a level equivalent to the monthly Social Security benefits that seniors would receive at full retirement age."

The DOL Is Tearing Down a Landmark of Investor Protection

"Corporate governance and shareholder rights have seldom witnessed an assault on investor protection like the current federal government's onslaught. Whether weakened rules on broker accountability, rules designed to eliminate shareholder proposals, or those taking direct aim at neutering proxy voting, the feds' decisions are to the great detriment of Mr. and Mrs. 401(k)."

Retirement Plans Need to Keep Their Promises. We Make Sure They Do.

"We are committed to working for America's workers every day. By insisting that fiduciaries comply with ERISA, [EBSA] has achieved big results -- recovering more than $2.5 billion in direct payments to plans and workers last year. That amounts to more than $30,500 per investigator per day."

Private Equity Could Be Coming to Your 401(k): Here Are a Few Things to Know

"The greatest risk with incorporating private equity into 401(k) plans is that savers will be exposed to risks they don't recognize, understand, or anticipate in funds that they expect to be conservative and stable ... If the investments are incorporated as planned into target-date and target-risk funds -- the default investment option for many 401(k) participants -- they'll land in the portfolios of the least engaged investors."

Your 401(k) Will Soon Show Monthly Retirement Income -- Beware the Math

"Retirement plan providers, consultants, and researchers applaud the idea of focusing 401(k) participants' attention on retirement income, but they're starting to sweat the details that will feed into the lifetime income projections. A simplistic calculation that omits key details, critics say, may mislead participants or serve mainly as an annuity sales tool."

Annuities in 401(k)s Won't Solve the Retirement Crisis

"Employers have shied away from including annuities in retirement plans over liability issues -- participants might sue if an insurance company in the plan goes belly up or fails to pay claims. The [SECURE Act] gives employers a 'safe harbor'' that limits their liability.... The advantage of annuities is that they offer investors guaranteed retirement income not exposed to market fluctuations or vulnerable to poor investment choices.... The rap on annuities is that, yes, while some are low cost, others come with high commissions and high fees that eat into the benefits."

Have Multiple Retirement Accounts? Use Them in This Order

"Where you hold different kinds of investments -- whether in a taxable, tax-deferred, or tax-free account -- and which assets you tap first for retirement income are significant factors that can impact after-tax returns over the long term."