Designing Successful Target–Date Strategies for Defined Contribution Plans – Putting Participants on the Optimal Glide Path

TRAMA

The ultimate guidebook for navigating the new world of pensions and retirement plans In the wake of the explosive growth of defined contribution (DC) plans invested with target date strategies, and the understanding of how important these strategies can be in effectively meeting retirement income goals, plan sponsors are seeking more optimal target date approaches. This timely book provides you with in-depth answers from the nation's most qualified and experienced experts to pressing questions about DC plan design. * Presents the views of individuals from all across the market * Includes a broad range of plan sponsors both in the corporate world and in the public/government sectors * Offers views from consultants and advisors from the most respected firms, academics who teach at leading universities, and other innovative leaders With a broad range of knowledge and insight, Designing Successful Target Date Strategies in Defined Contribution Plans helps you understand the evolution of DC plans, pulls together all angles of what it takes to develop custom target date strategies, and provides you with a look ahead to the future.

SOMMARIO

Section 1: DC Plan Evolution and Design Trends. Chapter 1: Defined Contribution Plans in the American Retirement System. Evolution of the DB and DC Plans. Making the Move from a DB Plan into a DC Plan. How Do We Measure DC Plan Success? What Is a Qualified Default Investment Alternative (QDIA)? Qualified Default Investment Alternatives. Other Significant QDIA Provisions. Understand the Qualified Default Investment Alternatives. Auto-escalation: How Much Is Enough? How Much Should We Save to Beat Inflation? Preparing for Retirement in an Economic Downturn. What the Future May Hold for DC Plans. Conclusion. Chapter 2: Evolving DC Plan Design. Investment Structure of Define Contribution Plans. The Future of DC Plan Investment Design. Tier I: Qualified Default Investment Alternatives Asset Allocation Strategies. Tier II: Core Investment Offerings in DC Plans. Tier III: Brokerage or Mutual Fund Window. Tier IV: Passive Investment Strategies? Evolving Structures and Alternative Investment Strategies Bringing it all together:  DC Investment Structure and Guarantees. Conclusion. Chapter 3: Target-Date Strategies: Packaged Versus Custom. Why Plan Sponsors Create Custom Target Retirement-Date Strategies. Greater Control. Reduce Overall Plan Cost. Leverage Core Investment Manager Selection and Monitoring. Blend Investment Structure and Style. Broaden Asset Diversification beyond Core. Tailoring the Glide Path to Plan Demographics. Intel: Building Is Better Than Buying. Verizon: Well Worth the Effort. Conclusion. Section 2: Development of Custom Target Date Retirement Strategies. Chapter 4: Legal and Fiduciary Considerations. Common Legal Questions Regarding DC Plans. Investment Policy Statements and Governance. Target Date Strategies on the Hot Seat. Conflicts of Interest. Transparency. Disclosure. Fees and Expenses. Relative Risk. What may lie ahead in legislation of Target Strategies. Conclusion. Chapter 5: Record Keeping and Trust. Two Basic Approaches to Setting Up Record Keeping. Custom-Target Strategies Lead to New Record-Keeping Approaches. Pros and Cons of Alternative Operational Approaches. Questions to Pose to Your Record Keeper. Key Considerations to Determine Which Approach to Choose. Establishing and Maintaining Operations. Conversion of Target Risk to Target Date. Fee Allocations and Disclosures. Rebalancing the Target Date Strategies. Deluxe: Seamless Operational Set Up and Roll-Out Communication. How Record Keepers and Trustees Support Operations. Conclusion. Chapter 6: Communication Challenges and How to Meet Them. Common Myths Surrounding Custom Target Strategy Communication. Communicating the Benefits of Target-date Strategies. Communication Strategies to Keep It Simple. Communication Tools. Helping Plan Participants to Visualize Their Post-retirement Future. Communications and the Switch to DC Custom Strategies. Communication Challenges during an Economic Downturn. Conclusion. Chapter 7: Evaluating Costs in Custom Strategies. Why Costs Matter. Have You Calculated and Reduced Total Plan Cost? Keeping Fees Reasonable. Unbundling Can Keep Down Costs. Custom Strategies and the Value of Unitizing. Experts Discuss Fee Transparency. ERISA Section 404(c) and Fee Disclosure. Costs of Implementing and Running Custom Target Strategies. Conclusion. Section 3: Designing and Benchmarking Custom Target Date Strategies. Chapter 8: Glide Path Design. An Academic Look at Creating Optimal Asset-Allocation Strategies. Tactical Asset Allocation. The Black-Litterman Model. Value at Risk. Monte Carlo Simulation. A Practitioner's Look at Creating Optimal Asset-Allocation Strategies. DC Plan Success Requires a New Approach. Evaluating the Probability of Meeting DC Retirement-Income Goals. PIMCO YODcA Model Inputs: Evaluating Risk Factor Exposures in Target Date Glide Paths. Plan Sponsor Approaches to Custom Target Date Strategies. When Designing the Glide Path, It Is Critical to Use More Than One Metric. Helping Protect against Inflation and Considering Human Capital in Glide Path Construction. Adopting a More Conservative Approach to Glide Path Design. Designing the Glide Path in 5-Year Increments. Conclusion. Chapter 9: Asset Classes and Alternatives. Clearing the Decks: Offering a Brokerage Window to Participants. Typical DC Core Investment Offerings. Simplify, Simplify, Simplify. Simplify, Yet Diversify. Suggested Core Investment Lineup. Capital Preservation. Stable Value. Money Market Funds. Global Fixed Income. Inflation Protection. Asset Class #1: Treasury Inflation Protected Securities (TIPS). Asset Class #2: Commodities. Asset Class #3: Real Estate. Global Tactical Asset Allocation. Global Equity. Adding Alternatives to Target-Date. Conclusion. Chapter 10: Helping Protect DC Assets from Risk. How Do We Experience Risk? 2008 Market Impact on DC Participant Accounts. No Place to Hide. What are the Main Types of Risk? Emotional or Behavioral Risk. Market or Price Volatility Risk. Shortfall Risk. Time-Period Risk. Inflation Risk. How Do We Help Protect against Inflation? Longevity Risk. Taxation Risk. Helping Protect DC Participant Assets from Risks. The Importance of Tail Risk Hedging. Conclusion. Chapter 11: Approaches to Benchmarking. An Introduction to Target Date Benchmarking and the Measure of Success. Common Approaches to Benchmarking Target Date Strategies. Consultant Perspectives on Benchmarking. Plan Sponsor Approach to Benchmarking. Developments in Benchmarking Alternatives for Plan Sponsors. Benchmarking Managed Accounts. Conclusion. Section 4: Looking Ahead to the Future. Chapter 12: Financial Education, Advice and Retirement Planning. Why Plan Sponsors Provide Education and Advice. Is Advice Needed When a Plan Has Auto-enrollment and Target Date Strategies? Education and Advice Offered by Plan Sponsors. Evolution from Education to Managed Accounts. Comparison of Managed Accounts and Custom Target Date. Advice Beyond Asset Allocation. Advice Beyond Advice Models. What Is Financial Planning? Financial Planning Process. Financial Planning Fees. Conclusion. Chapter 13: Retirement Income and Guarantees. Encourage Participants to Stay in the Plan or Go? Why Encourage Them to Stay? Why Encourage Leaving? Should You Encourage Participants to Stay? Structuring the Plan to Manage Risks Faced in Retirement. Increasing Distribution Flexibility. Adding Retirement Income Products. Systematic Withdrawal Plan. Retirement Income Guarantee Solutions. Some Historical Background on Annuities in DC Plans. Out-of-Plan Income Solutions. Longevity Insurance Coupled with Systematic Withdrawal. In-Plan Guarantee Solutions. Plan Sponsors Exploring Guarantees. Allowing Consolidation of Outside Assets into the Plan. Conclusion. Notes. Index.

ALTRE INFORMAZIONI

• Condizione: Nuovo
• ISBN: 9780470596319
• Collana: WILEY FINANCE
• Dimensioni: 229 x 21 x 152 mm Ø 546 gr
• Formato: Copertina rigida
• Pagine Arabe: 336