GA July 2021 Newsletter

  • VOLUME XLV | NUMBER XLII | July 2021

    • Bitcoin: Coming to a 401(k) plan near you?

      The conclusion from our 2018 report on Bitcoin (BTC) remains relevant today. In short, the prudence in adding Bitcoin to a retirement plan is questionable, at best. Please see our past Retirement Times article on BTC (link here) discussing the cryptocurrency and its supporting technology. Greater media coverage has caused BTC interest to grow exponentially, as has its meteoric rise in price. Currency, let alone cryptocurrency, lacks intrinsic value, and does not provide dividends or income. The absence of intrinsic value, dividends, or income makes currency a less than ideal investment option because price becomes more a function of supply verses demand. Thus currencies are difficult to value and develop a long-range return forecast. Newer currencies like BTC contain elements of speculation because their approaches,...

       

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    • 7 Ways to Reduce Fiduciary Liability

      In 2020, nearly 100 lawsuits alleging breach of fiduciary duty were filed. And with the number of 401(k) lawsuits on the rise targeting plans both large and small, sponsors are well-advised to consider taking additional measures to mitigate fiduciary risk where practicable. Here are a few to consider. 1. Create and follow an IPS. While not an ERISA requirement, an investment policy statement (IPS) is considered a best practice according to Department of Labor (DOL) guidance. Among other things, it outlines how the organization will maintain and follow prudent processes for selecting and monitoring investments and oversee the performance of third-party providers. However, be advised that failure to follow IPS provisions can also expose an organization to increased risk, so careful crafting of IPS language...

       

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    • To Bundle or Not to Bundle — What’s Best for Your Business Is the Question

      Whether to use bundled or unbundled service providers is an important decision for your retirement plan. A fully bundled arrangement provides an easy, one-stop shop for services, while unbundling separates functions and uses a third-party administrator (TPA), distinct from the recordkeeper. While there is no right or wrong answer to this question, weighing the advantages of each option against the needs of the organization is essential. The Benefits of Bundling: Convenience and simplicity. Often less complicated than dealing with multiple vendors, bundling may be a better choice when convenience is key. Bundling offers a comprehensive all-in-one solution, which can make it a more efficient and easier-to-manage option for many businesses. Cost-effectiveness. Organizations can realize significant savings by bundling services when the cost of administrative and...

       

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    • Participant Memo: July 2021- Are You Sabotaging Your Retirement?

      Finding reasons not to contribute to your retirement plan may adversely affect your retirement goals. Do any of these excuses sound familiar?

       

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