Risk and Regret in Plan Decisions
Evaluating suitability can be a complicated task. What can you do to help ensure successful outcomes for participants?
We all have regrets. A QDIA shouldn’t be one of them.
Spotlight on Suitability
Qualified default investment alternative (QDIA) suitability isn't "set it and forget it." It isn’t a popularity contest. And it isn’t merely absolute or relative performance numbers. Strengthen your relationships with plan sponsors by helping them stay on top of factors that can change a plan's suitability profile over time.
Webinar: Overlooked Fiduciary Red Flags
In today’s lawsuit-laden landscape, a seemingly minor misstep can have considerable consequences. Get expert insights on the evolving regulatory framework—and heading off red flags through timely intervention.
QDIA Insight
The Surprising Role of Defense for Younger Participants
Research shows younger participants face unique risks and might end up with significantly larger retirement nest eggs if their target-date funds (TDFs) played smarter defense.
The High Stakes of High Savings Rates
A high savings rate can change a plan’s risk profile. If plan fiduciaries haven't reviewed the suitability of the original TDF selection, they could be putting retirement outcomes at risk.
The Right Way to Select a QDIA
Do you have a well-documented selection process that aligns with participant demographics? Find out how it provides the highest level of legal protection for your selection.
Sequence of Returns Risk
Share with clients and participants how the bad luck of a poorly timed bear market can significantly increase the chances of running out of money in retirement.
Solutions
Suitability Matters: Balancing Risks in Glide Path Design
Variations in risk tolerance, savings patterns and other demographic factors can lead to subtle differences in suitable glide path risk levels over a participant’s life cycle.
Advisor Support
As one of the longest-running target-date providers in the industry, American Century Investments has proudly offered retirement solutions for over 20 years.
As of August 31, 2024, out of 51 total mutual fund target-date strategies listed in Morningstar, there were only 5 other strategies with a 20-year track record.
Questions?
Speak with one of our defined contribution experts.
This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.
You could lose money by investing in a mutual fund, even if through your employer's plan or an IRA. An investment in a mutual fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
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