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Resources

Plan Documents… Save or Purge?

Many ERISA plan sponsors are unclear regarding a primary fiduciary responsibility concerning plan document retention (which and when documents may be purged). Most plan sponsors adopt an assumed “reasonable” amount of time to retain documents prior to purging them. Unfortunately, IRS rules may not always be complicit with what may be assumed to be “reasonable”. The purpose of this communication is to underscore the important plan record retention so that you may not fall prey to the type of…

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Defined Contribution Recordkeeper Consolidation Continues

Empower recently announced an agreement to acquire MassMutual’s retirement plan recordkeeping business. The acquisition is expected to capitalize on both firms’ experience and expertise to the benefit of retirement plan participants and plan sponsors. Plans currently utilizing MassMutual are being notified of this action and should expect no changes or disruption to current operations during the next 4 to 6 months, with any potential changes likely 18 months away. While MassMutual’s retirement plan products and services are considered among…

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To Roth or not to Roth

Many Defined Contribution retirement plan participants are uncertain as to benefits of allocating their contributions to traditional vs Roth options. This is for good reason. There are two key major determiners as to the benefit of contribution to Roth: 1. Will they be in a higher or lower tax bracket in retirement? 2. Will tax rates increase, stay the same or decrease in the future? If you know for sure that tax brackets will increase in the future, the…

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Three Questions to Consider During Open Enrollment

Open enrollment is your annual opportunity to review your employer-provided benefit options and make elections for the upcoming plan year. You can get the most out of what your employer offers and possibly save some money by taking the time to read through your open enrollment information before making any benefit decisions. Every employer has its own open enrollment period (typically in the fall) and the information is usually available online through your employer. What are your health plan…

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Five Investment Tasks to Tackle by Year-End

Market turbulence in 2020 may have wreaked havoc on your investment goals for the year. It probably also highlighted the importance of periodically reviewing your investment portfolio to determine whether adjustments are needed to keep it on track. Now is a good time to take on these five year-end investment tasks. 1. Evaluate Your Investment Portfolio To identify potential changes to your investment strategy, consider the following questions when reviewing your portfolio: How did your investments perform during the…

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Is It Time to Think About Tax-Free Income?

Federal and state governments have spent extraordinary sums in response to the economic toll inflicted by the COVID-19 pandemic. At some point it is likely that governments will look for ways to increase revenue to compensate for this spending and increase income taxes as a result. That’s why it might be a good time to think about ways to help reduce your taxable income. Here are three potential sources of tax-free income to consider. Roth IRA Contributions to a…

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Sandwich Generation Caregivers Face Many Challenges

Profile of Sandwiched Caregivers 67% are employed 61% are women 33% report high levels of emotional stress 20% face high financial stress 20% say caregiving has worsened their health     Individuals in the “sandwich generation” have the dual responsibility of providing care for an adult — often a parent — while also raising children. Caring for others can be very rewarding, but the day-to-day demands of supporting multiple generations can take a financial, emotional, and physical toll on…

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Accumulating Funds for Short-Term Goals

Stock market volatility in 2020 has clearly reinforced at least one important investing principle: Short-term goals typically require a conservative investment approach. If your portfolio loses 20% of its value due to a temporary event, it would require at 25% gain just to regain that loss. This could take months or even years to achieve. So how should you strive to accumulate funds for a short-term goal, such as a wedding or a down payment on a home? First,…

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Printing Money: The Fed’s Bond-Buying Program

The Federal Reserve’s unprecedented efforts to support the U.S. economy during the COVID-19 pandemic include a commitment by the Federal Open Market Committee (FOMC) to purchase Treasury securities and agency mortgage-backed securities “in the amounts needed to support smooth market functioning and effective transmission of monetary policy.”1 The Fed buys and sells Treasury securities as part of its regular operations and added mortgage-backed securities to its portfolio during the Great Recession, but the essentially unlimited commitment underscores the severity…

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Women Outpace Men in Degrees Earned

During the 2019-2020 Academic year, U.S. colleges and universities conferred an estimated 989,000 Associate’s degrees, 1,975,000 Bachelor’s degrees, 820,000 Master’s degrees, and 184,000 Doctoral degrees. Women attain more degrees than men at every level. Educational Degrees Earned, By Gender Women Men Associate’s 61% 39% Bachelor’s 57% 43% Master’s 60% 40% Doctoral 54% 46% Source: U.S. Department of Education, 2019 (projected data) IMPORTANT DISCLOSURES Wellspring Financial Partners, LLC does not provide tax or legal advice. The information presented here is…

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