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It is Not Borrow to Save, But Save to Borrow!

10/09/2018
By Jack Towarnicky

Take action now by reviewing your retirement savings plan’s liquidity provisions.

To quote one benefits expert, “Borrowing to save—isn’t that something that only an oxymoron would do?”1   

I agree, and I disagree.    

The expert suggests your workers may be incurring high-cost debt in order to participate in employer-sponsored retirement savings plans – that foregone take home pay would be better used to:

  • Repay existing debts, and/or 
  • Avoid adding new, high-interest rate debt. Read More >>

Rethinking Rebalancing

10/03/2018
By Jack Towarnicky

Are your third-quarter statements out? If not, your participants may not want to wait to check out their recent investment performance. Those invested in domestic equities might be feeling flush as most U.S. market indices are at or near all-time highs. Read More >>


Life is Not A Dress Rehearsal For Retirement: Start doing some of those things you are dreaming about today!

09/19/2018
By Jack Towarnicky

Professor Dan Ariely and Mrs. Aline Holzwarth, principal of the Center for Advanced Hindsight, both of Duke University, posted an article in the September 4, 2018 issue of the Wall Street Journal titled, “How Much You’ll Really Spend in Retirement, Probably a Lot More Than You ThinkRead More >>


Defeating Egocentric Bias – Meeting Workers Where They Are (Second of Two Articles)

09/12/2018
By Jack Towarnicky

In a prior blog, I noted that Laraine McKinnon, LMC17, presented at our Plan Sponsor Council of America National Conference about her book Known: How to Create a Great 401(k).  My prior post focused on plan management and plan design. Read More >>


Known: How Your 401(k) Can Make the Leap from Good to Great (First of Two Articles)

09/04/2018
By Jack Towarnicky

Last May, Laraine McKinnon, LMC17, presented at PSCA’s 70th Annual National Conference.  Her presentation was titled: “Known: How to Create a Great 401(k)" and based on her book of the same name. 

The word “great” immediately triggered an allusion to Jim Collins’ seminal management text, “Read More >>


The Sky is Not Falling on Older Americans

08/27/2018
By Jack Towarnicky

Widespread Poverty Among America’s Seniors?  No.
Just a couple of weeks ago, a few publications ran stories predicting that older Americans reaching retirement age were in “worse financial shape than the prior generation for the first time since Harry Truman was president. Read More >>


Nothing is Better for Thee Than Me

08/22/2018
By Jack Towarnicky

This old Quaker Oats advertising slogan1 has relevance for your retirement plan.  I say nothing is better for your individual account retirement savings plan and its participants than automatic features done right. Depending on your circumstance, that may include defaults for automatic enrollment, automatic escalation, automatic re-enrollment and automatic re-investment using the Qualified Default Investment Alternative (QDIA). Read More >>


Health Savings Accounts: What’s the Problem? What’s the Solution? Part 2

08/09/2018
By Jack Towarnicky

In our prior post, the House of Representatives recently approved a number of changes that would improve the function and use of Health Savings Accounts (HSAs). Those proposals have a lot of good ideas but do not address the real problem -- access to HSA-qualifying coverage and HSA savings rates. Read More >>


Health Savings Accounts: What’s the Problem? What’s the Solution? Part 1

08/03/2018
By Jack Towarnicky

The House of Representatives recently approved a number of changes that would improve the function and use of Health Savings Accounts (HSAs).  Lots of good ideas there.  This is Part 1 – What’s the Problem?  In a second blog, What’s the Solution, I will offer some suggested changes. Read More >>


Sidecar = Suboptimal

07/30/2018
By Jack Towarnicky

Perhaps you noticed the recent proposal which would authorize a plan sponsor to use automatic features in creating so called “sidecar” savings account for financial emergencies.1  Contributions would be taken on an after-tax basis and invested in capital preservation investments. The account could be a part of or separate from the tax-qualified plan. Read More >>


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