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Rationally Irrational

By Jack Towarnicky

The best solutions respond to both rational and irrational actions!

A few days ago, I stumbled over a recent controversy regarding a recent Investment Company Institute study.1

Dr. Alicia Munnell offered her opinion that the, “(ICI) study… seems to (say), ‘Don’t worry if young people and others aren’t saving for retirement. Read More >>

SECURE, Ben Franklin and Looking For a Few “Good” Plan Sponsors

By Jack Towarnicky

You may have noticed that the SECURE Act has stalled in the Senate.1 One much-discussed provision would change fiduciary requirements for adding an in-plan annuity.2

I am a Frank-o-phile - a big-time fan of Ben Franklin. My sister Carol lives in Philadelphia (sisterly love). Read More >>

Discordant Disclosures

By Jack Towarnicky

Simple, Standard, Universal is Best

One industry professional recently called for “standardized lifetime income disclosure, ASAP.”1 I agree with his goal. I disagree with his solution.

He concludes: “The simplest, least confusing and best way to present this information is to tell the participant what sort of age-65 life annuity he or she could buy with his/her current account balance. Read More >>

Staying Liquid via A Sidecar Account = Suboptimal Retirement Preparation?

By Jack Towarnicky

Preparing for Emergencies Along the Way to Retirement

We are saving in uncertain times – employees may be uncertain about expenses and emergencies and uncertain about future employment and income.

Savings is a consequence of consumers rational expectation that they will experience a future decline in income. Read More >>

Pension Promises Without Funding Are Mere Dreams

By Jack Towarnicky

To paraphrase a recent Forbes article, poorly-funded defined benefit pension plans are a poor substitute for individual account retirement savings plans.1

Recently, I posted an item titled Mind the (Wealth) Gap to once more challenge the oft-repeated claim that 401(k) plans are inadequate when compared to defined benefit pension plans (DB pensions). Read More >>

Mind the (Coverage) Gap

By Jack Towarnicky

Today they are your employees. With few exceptions, they had a different employer(s) in the past. And, chances are, most will work somewhere else, someday. So, start minding the coverage gap for all your employees.

In 2016, 64% of workers ages 26 to 64 participated in an employer-sponsored retirement plan either directly or through a spouse. Read More >>

Mind the (Return) Gap

By Jack Towarnicky

What You Do Know Can Hurt!

A week or so ago, I posted a blog on the Wealth Gap. A gap does exist; however, studies show that plan sponsors are making significant strides towards closing the “retirement savings wealth gap” by deploying automatic features. Read More >>

The “Elephant” In the Retirement Savings Room

By Jack Towarnicky

Too many plan advisors, service providers, policy makers, academics and pundits are hyper focused on saving for retirement – which may actually impede rank and file workers’ preparation for retirement.

Many believe rank and file American workers must focus solely or primarily on saving in their 401(k) or 403(b) if they are to successfully prepare for retirement. Read More >>

Mind the (Wealth) Gap

By Jack Towarnicky

Slowly, surely, increased employment among non-white Americans, coupled with broader coverage under employer-sponsored, individual account retirement savings plans that deploy automatic features will, ultimately, reduce racial retirement savings and household wealth gaps.

Again, once more, we encounter the myth of widespread coverage of defined benefit pension plans (DB plans). Read More >>

Retiree Medical Super Hero – The Health Savings Account

By Jack Towarnicky

“An investment in knowledge pays the best interest.”1

This is the third of three posts – this post is focused on funding future medical expenses.

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