1-520-327-1019 info@wellspringfp.com

May Any Employee Join the Retirement Committee?

Upon first blush, to the extent an employee from the general populace can and wishes to make a contribution as a committee member, there seems to be no reason why they shouldn’t participate on the committee. In practice, most committees consist of executives from finance (preferably the CFO), benefits and human resources. Due to the potential personal liability exposure, if there is interest from other lay people who wish to represent the vote of the participant base, they are…

Read More >

Partial Plan Terminations

rules regulations waivers

A partial plan termination occurs when 20 percent or more of a company’s employees are laid off in one year. Routine turnover during the year is generally not considered a partial plan termination. To determine whether your turnover rate is routine, consider the following factors: What was your turnover rate during other periods and what was the extent to which terminated employees were actually replaced? Do the new employees perform the same functions as the previous employees? Do they…

Read More >

Millennial Workers Require Special Investment Menu Design

Millennials are the largest demographic cohort in the nation, U.S Census Bureau data shows. And up to 80 percent are already saving in their employer-sponsored retirement plans, according to a 2015 report from Bank of America Merrill Lynch. The newest generation of workers—which the Pew Research Center defines as those born between 1981 and 1997—has exhibited distinctive attitudes and behaviors that plan sponsors and their advisors must consider when designing menus. Plan administrators, too, must rethink some long-held beliefs…

Read More >

Should You Have Alternatives in Your Lineup?

The term “alternative investments” may conjure images of classic automobiles, fine wine, rare art and valuable jewels. Some may think about the Honus Wagner baseball card that sold for $3.12 million at auction in 2016. Or about the 1962 Ferrari 250 GTO that sold at auction for a whopping $34.65 million in 2014. Or maybe they set their sights even higher and think about the Hope Diamond, with an estimated value of $200-$250 million. While these treasures are fun…

Read More >

What is an ERISA fiduciary?

The Employee Retirement Income Security Act (ERISA) was enacted in 1974 to protect employees who participate in retirement plans and certain other employee benefit plans. At the time, there were concerns that pension plan funds were being mismanaged, causing participants to lose benefits they had worked so hard to earn. ERISA protects the interests of plan participants and their beneficiaries by: Requiring the disclosure of financial and other plan information Establishing standards of conduct for plan fiduciaries Providing for…

Read More >

Are you Ready to Retire?

Here are some questions to ask yourself when deciding whether or not you are ready to retire. Is your nest egg adequate? It may be obvious, but the earlier you retire, the less time you’ll have to save, and the more years you’ll be living off  your retirement savings. The average American can expect to live past age 78.* With future medical advances likely, it’s not unreasonable to assume that life expectancy will continue to increase. Is your nest…

Read More >

Is It Wise to Trade Your Pension for a Lump Sum?

Most private employers have already replaced traditional pensions, which promise lifetime income payments in retirement, with defined contribution plans such as 401(k)s. But 15% of private-sector workers and 75% of state and local government workers still participate in traditional pensions.1 Altogether, 35% of workers say they (and/or their spouse) have pension benefits with a current or former employer.2 Many pension plan participants have the option to take their money in a lump sum when they retire. And since 2012,…

Read More >

Tax Benefits of Homeownership

Buying a home can be a major expenditure. Fortunately, federal tax benefits of homeownership are available to make homeownership more affordable and less expensive. There may also be tax benefits under state law. Mortgage interest deduction One of the most important tax benefits of owning a home is that you may be able to deduct any mortgage interest you pay. If you itemize deductions on your federal income tax return, you can deduct the interest you pay on a…

Read More >

Is Smart Beta a Smart Strategy for You?

Traditional investment indexes such as the S&P 500 are weighted based on market capitalization, the value of a company’s total outstanding stock. This means the largest companies in the index may have much greater influence on index performance than smaller companies. For example, the 10 largest companies in the S&P 500 account for more than 18% of the index’s performance, as opposed to about 2% for the 10 largest if every company were weighted equally.1 Funds that track market-weighted…

Read More >

Investor vs. Investments

In a Walk Kelly comic strip there was a possum named Pogo, and in the 1971 Earth Day posting Pogo uttered the philosophical revelation; “We have met the enemy and he is us”.  Nowhere is this time-tested tale more evident than in watching investor behaviors.  Observe that I did NOT say it was evident in studying or looking at investments, but rather in investor behaviors. As our clients are well aware of our dislike for how the financial services…

Read More >