December 2023
Summary Keeping with the holiday spirit, markets finished the year in a generous mood, filling investors’ stockings with one final month’s worth of bumper returns for stocks and bonds. With the consensus in the U.S. and internationally, agreeing that interest rate hikes are likely a thing of the past, worries of a broad economic recession…
Read MoreThe Power of the PENsion: Reality and Resolutions – Guaranteed Retirement Income
photo credit Unsplash The Reality Americans have experienced in recent years: a worldwide pandemic, inflation, interest rate increases and geopolitical issues. There is a general feeling of unease. Add to that baseline the anxiety that workers report (up 33% in 2023[i]) concern about their jobs, their earnings, and their future financial security. According to a…
Read MoreAuld Lang Syne: Some Things Remain the Same (including Retirement Plan Committee Best Practices)
photo credit Pixabay As 2023 ends and a new year begins, in Scotland’s highlands and lowlands you’re likely to hear the familiar “Auld Lang Syne,” a Scottish expression meaning “old long since.” It’s a tribute to times past or a longing for old times. If you’re a plan sponsor fatigued by the pace of change,…
Read MoreNovember 2023
Summary Investors had plenty of reasons to feel thankful in November. Coming off consecutive losing months, stocks roared back, with global equity returns finishing north of 8%. Bonds followed closely behind, with the Bloomberg Aggregate Index posting its largest monthly return since 1985, buoyed by a stunning rally in interest rates during the second half…
Read MoreThe Power of the PENsion: Have We Stuck the Landing? (Or are we skating on thin ice?)
Earlier this month, the Federal Open Markets Committee (FOMC) unanimously agreed to hold the key federal funds rate in a target range of 5.25% to 5.5%. This short-term benchmark rate has been held steady since July 2023. With the decision to leave the rate unchanged, it might have seemed we’d stuck the landing—the economy’s soft landing…
Read MoreOctober 2023
Summary Markets continued to decline in October, retracing lower for the third consecutive month. Stocks took a hit due to a combination of strong economic data – which fueled concerns that higher interest rates will persist – and geopolitical risks associated with an escalating conflict in the Middle East. Bond yields were volatile throughout the…
Read MoreSeptember 2023
Summary Markets declined further in September, marking a second consecutive down month for both stocks and bonds. Interest rates marched higher, and the Treasury curve flattened with the 10-year yield topping 4.6% late in the month; mortgage rates also ended higher. On the economic front, the United Auto Workers initiated the first phase of a…
Read MoreMinimum Required Contributions: It’s Time to Pay the Piper
Photo credit: Unsplash Rising rates and increasing economic pressures may surprise pension plan sponsors with MRCs not paid in years. But the gig is up. It’s time to pay the piper. In recent years, fall has tended to be an unremarkable time for pension plan sponsors. The plan’s AFTAP (adjusted funding target attainment percentage) valuation…
Read MoreAvoid A Knockout
“You can map out a light plan or a life plan but when action starts it may not go the way you planned, and you’re down to the reflexes you developed in training…” Joe Frazier (American Professional Boxer) A friend shared with me how his son was preparing for a formal boxing match. Beyond…
Read MoreThe Power of the PENsion: Count the Cost of Offering a Pension Plan
Comprehensive analysis of your plan may show the cost to be well worth your employees’ benefit What is 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…
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