Nevin's Data "Points"

Will your portfolio soar with the Seahawks, or get pummeled by the Patriots? That’s what adherents of the so-called Super Bowl Theory would likely predict. The Super Bowl Theory holds that when a team from the old National Football League wins the Super Bowl, the S&P 500 will rise, whereas when a team from the old American Football League prevails, stock prices will fall. It’s a “theory” that has been found to be correct nearly 80% of the time; for 38 of the 48 Super Bowls, in fact. It certainly “worked” in 2014, when these same Seattle Seahawks bumped the Broncos, a legacy AFL team, and in 2013, when a dramatic fourth quarter comeback rescued a victory by the Baltimore Ravens who, though representing the AFC, are technically a legacy NFL team via their Cleveland Browns roots. Admittedly, that the markets fared well in 2013 was hardly a true test of the Super Bowl Theory since, as it turned out, both teams in Super Bowl XLVII — the Ravens and the San Francisco 49ers — were ...

So, advisors, how does it feel to be compared to a termite? That’s right, a powerful coalition of retirement, union, and so-called consumer protection groups has launched a new attack on retirement plan advisors. They’re doing so ahead of the president’s State of the Union address, and doing so now because he is expected to throw his support behind the Department of Labor’s fiduciary rule (re)proposal. Yes, that one. Not that they yet know what they are supporting. In a new website launched to help promote their position, even they say “If the Department gets the rule right…”, apparently relying on the word of the Department of Labor that “…its goal is to make sure that all financial professionals have a legal obligation to put the interests of their customers first when they offer retirement advice.” We don’t yet know what will be in this latest version. What we do know is that the last version raised significant concerns about its impact on the retirement plan marketplace,...

Our industry spends a lot of time and money educating workers about the advantages and mechanics of saving for retirement. But here are six things I think too often go unsaid. Your 401(k) isn’t free. That’s right, it isn’t free. It may be heavily subsidized by your employer, and you’re likely paying a lot less for the fund(s) and features you have access to than if you were to try and buy them on your own (say, via an IRA or brokerage account) — but even then, it’s probably not “free,” nor should you expect it to be. But if you don’t know how much you are paying, you should find out. You’ve probably been provided some information about your 401(k) plan fees already. You can find out how to use that information here . More information about 401(k) fees is available here .    That employer match isn’t “free” either. You may have heard that you should save enough to receive the full employer match — that “you don’t want to leave that free money on the table.” It is,...

Whether or not you’re in the habit of making New Year’s resolutions, this is a time of year when reassessments seem appropriate, and perhaps in no area as much as that of retirement plan administration. Many find themselves in the role of plan sponsor (or plan committee) with no background, limited training, and far more responsibility than they may appreciate at the outset. For those of you who find yourself starting the year with new plan sponsor clients, or new members of the plan committee, or perhaps even incumbents who could benefit from some New Year’s resolutions, here’s five things every plan sponsor should know: How much your 401(k) plan costs. Okay, fees are just one of several factors plan sponsors need to consider, but when the fees for services are paid out of plan assets, there is an obligation to understand the fees and expenses charged. This is important because you are expected to ensure that the fees paid and services rendered to the plan are reasonable. It’s h...

The winner of the year’s most ridiculous 401(k) headline may well be one that ran just last week. The post was titled, “Did Your 401(k) Balance Increase $50,000 This Year? If Not, You May Be Falling Behind.” Or, as I am inclined to think when I see such nonsense, “you may not.” The article was mostly a simple recycling of information just released by BrightScope on their determination of the “ Top 30 401(k) Plans of 2014 .”  In looking at those 30 plans, BrightScope chose several data points to highlight — including the point that, among those 30 plans, the average account balances have increased nearly $50,000 since the top 30 list of 2013 was compiled. In drawing insights from those results — specifically the $50,000 increase in average balance — the article’s author (a Certified Financial Planner, no less) opined: That may be a good benchmark to determine just how effective your retirement savings plan is working for you. If your balance has grown an amount equal to or gr...