Tag Archives: 401k
Closing the Retirement Gap with Indices
How can indices help retirees achieve retirement income goals? Nobel Laureate and Resident Scientist at Dimensional Fund Advisors, Dr. Robert Merton joins S&P DJI’s Dan Draper and Aye Soe for a deep dive into the U.S. retirement ecosystem.
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Aye M. Soe, Dan Draper, DB plans, DC Plans, defined benefit plans, defined contribution plans, Dr. Robert Merton, ESG indices, FIAs, Financial Advisors, fixed index annuities, indexing, insurers, LDI, Liability driven investing, multi-asset indices, multi-factor indices, passive investing, pension funds, retirement annuities, retirement planning, S&P 500, S&P Dow Jones Indices, S&P Stride, SECURE Act, Target Date, target date indices
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- Aye M. Soe, Dan Draper, DB plans, DC Plans, defined benefit plans, defined contribution plans, Dr. Robert Merton, ESG indices, FIAs, Financial Advisors, fixed index annuities, indexing, insurers, LDI, Liability driven investing, multi-asset indices, multi-factor indices, passive investing, pension funds, retirement annuities, retirement planning, S&P 500, S&P Dow Jones Indices, S&P Stride, SECURE Act, Target Date, target date indices
Don’t Confuse Income With Yield
Yield conventions differ for stocks and bonds, but the various calculation methods for both asset classes have an important characteristic in common—they are alternative expressions of price. Measures of yield specifically relate current price to how much dividend or interest income holders of a particular security are likely to get. Thinking of yield as income…
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Whether the Market Is Overvalued or Not, It Can Pay to Rebalance
Current valuations of U.S. stocks inevitably lead to debate over their prospects for future returns, earnings sustainability, and whether we are in the midst of a stock market bubble. Some measures indicate the market is richly valued by historical standards, but no one knows what the future holds. However, one thing is clear—the potential value…
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History of the 401(k)
Thirty-nine years ago, the Revenue Act of 1978 was signed, adding section 401(k) to the Internal Revenue Code and creating the first US defined contribution plans. While the code itself simply described a provision under which employees would not be taxed on the portion of income they chose to receive as deferred compensation, it ushered…
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Passive Investing can be good for your retirement and health
In the print edition of the Wall Street Journal this weekend, there were two unrelated stories side by side, one about a firm’s self-dealing with 401(k) and another about Medicare. After reading them together it became clear that these seeming unrelated stories unintentionally show that while active funds can be bad for your retirement and…
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