Itâs clear, then, that thereâs a problem. In order how to best come up cure for Covid-related leakage, we have to zero in on exactly when the trouble lies.
Tag "Covid"
But this rookie mistake doesnât bypass veteran plan sponsors. If theyâve grown too complacent with their plan, they may wake up one day to find out theyâve got a dinosaur on their hands.
Just as these changes come bearing down, so, too, does a need for greater hand holding. Pressures within the provider industry, however, appear to be reducing the number of available hands.
Normally, interest rates rise with inflation. In turn, bond rates rise with interest rates. But that hasnât happened. In fact, short rates remain at historic lows. This means folks sitting in money markets or âsafeâ government bonds (and bond funds) are seeing their retirement savings eroded away.
Whatâs the Goal? Last I heard it was preparation for retirement via tax preferred savings ⊠but, looking around at what is typical industry practice, perhaps I have it all wrong.
If plan sponsors assume things can return to the pre-Covid normal, they risk exasperating existing problems. Theyâre there and cannot be ignored.
In the end, this all comes down to one final concern, and itâs one that is typically not even considered.
The Biggest 401k Fiduciary Fireworks, Fizzles, And Flops In 2021
Flops may not be forever. They may just be good ideas before their time. If youâre going to belittle them, you best hurry, because, if you wait too long, you may just discover they arenât flops anymore. As a result, letâs not waste any time before the shelf-life of these flops expire.