Posts by Mike Paolucci
The Power of the PENsion: Labor Day and the Pension Plan
Although summer may end officially on September 21, for most Americans, the season ends with Labor Day. The first Labor Day was celebrated in 1882. Far from marking the end of summer fun, it was meant to be a “workingmen’s holiday” between the Fourth of July and Thanksgiving. Two years later, the first Monday in…
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What do rising inflation and interest rates mean for fixed income investments and the economy?Are we seeing mixed signals? Highland Responds Our Highland clients have wanted to know how rising inflation and interest rate hikes impact fixed income investments and the broader economic picture. Are we seeing mixed signals? Possibly. And there may have been…
Read MoreThe Power of the PENsion: Understanding the Costs
What’s the cost of providing a defined benefit pension plan? Beyond employer contributions, when determining costs, we consider custody, asset management, and consulting fees. These fees vary depending on the management of the plan and whether it is active or passive. Active management employs professionals who actively buy and sell investments on behalf of the…
Read MoreThe Power of the PENsion: Pension Contributions – Pay Now or Pay Later?
Every day we are required to make decisions on doing something now or later. Do we purchase airline tickets now or wait for prices fall? Should we start dieting now or wait until after the holidays? With either option, you assume risk: the risk that airline prices go up and the risk that you are…
Read MoreThe Power of the PENsion: A New Series from Highland Consulting Associates
Pensions are retirement plans that are offered to individuals by private employers or government entities. These defined benefit plans invest in funds on behalf of individual account holders for guaranteed payment (in lump-sum or in payment streams) at retirement. The plans originated as early as 1875 with the first plan offered by the American Express…
Read MoreManaging Pension Risk in a Volatile Interest Rate Environment
The persistent decline in interest rates has presented challenges for pension plan sponsors, especially those with a funding deficit. The most obvious challenge is the upward pressure on liabilities. The other is the difficulty of managing the asset portfolio with continuing expectations of lower market returns. In the absence of fixed-income investments that offer attractive…
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