Throwing Darts in the Dark: Reasons to Review Your DB Plan Glide Path
For an employer, the ultimate goal of a defined benefit (DB) plan is to provide the retirement benefits promised to retirees. To accomplish this goal of funding those benefits and the related costs of providing them, an investment portfolio must generate sufficient returns—or a targeted rate of return (ROR). Asset allocation, or the practice of…
Read MoreReframing Our Perspective
“What I am looking for is a blessing not in disguise.” Jerome K. Jerome In response to aphorisms like “adversity builds character,” and “what doesn’t kill you makes you stronger,” is the honest plea from 19th century humorist Jerome K. Jerome, “What I am looking for is a blessing not in disguise.” While hard to…
Read MoreGlide Path 2023: Do Headwinds Require a Change in the Plan?
The headwinds (and headlines) of 2022 included this: 2022 was a year of volatility and concern over the prospects of a recession in 2023. However, for many defined benefit plans, those headwinds were favorable in the way they affected plan funded status, or the measure of plan assets to meet future obligations. Funded status is…
Read MoreJanuary 2023
Summary With 2022 in the rearview mirror, a year one would like to forget, markets in January kicked off afresh with positive returns across asset classes. The first inflation news for 2023 showed a continuation of the recent easing trend, as December’s Consumer Price Index (CPI) of 6.5% marked the lowest 12-month change since late…
Read MoreAgreement at the Eleventh Hour: SECURE Act 2.0 Signed into Law and What it Means for Your Plan
On December 29, 2022, President Biden signed into law the $1.7 trillion omnibus spending bill that included the Setting Every Community Up for Retirement (SECURE) Act 2.0. The act expands on provisions enacted with SECURE Act 1.0 in 2019. Three separate bills, one passed by the U.S. House of Representatives and two approved by the…
Read MoreGemini Cruise on Lake Erie
We enjoyed a wonderful cruise of the Lake Erie Islands on September 28, 2022, with incredible weather and scenery, in addition to our guests. We are sure the Battle of Lake Erie discussion will be treasured by all who participated. It was delightful to spend time with those that could make it; sorry to miss…
Read MoreCrash: Avoid the Most Common Accidents by Planning for Your Takeoff and Landing
Data from the National Transportation Safety Board (NTSB) reveal that 76% of aviation accidents occur during takeoff or in the final approach and landing.[i] The greater number by far occur at the end of the flight, during the final approach and landing. Clearly, beginnings and endings are challenging and require sound processes to avoid unexpected…
Read MoreDecember 2022
Summary Markets closed out a difficult year by finishing lower in December. After a late year rally, stocks slid, with the S&P losing 5.8 percent for the month. The Federal Reserve raised rates by 50 basis points mid-month, a slight reprieve from the series of 75 basis point moves earlier in the year and bond…
Read MoreThe Power of the PENsion: LDI in 2023 – Batten Down the Hatches
As we look back on the economic volatility of 2022 and face a possible recession in 2023, pension plan sponsors could be unnerved. Consider where we find ourselves at the close of 2022: Add to these dreary measures: It’s been a difficult year, and we’ve few reasons to expect smooth sailing in 2023. But the…
Read MoreNovember 2022
Summary Stocks and bonds were broadly positive in November as inflation slowed, with the Consumer Price Index (CPI) coming in at +7.7% year-over-year and below market expectations (+8%). Treasury yields declined and stocks rallied, as investors took the positive inflation surprise as a signal that the Federal Reserve would likely begin scaling back their tightening…
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