Notices & News

Notices or news of interest will be posted here–check in occasinally to see what is new.

Average Annual Returns

Though statistics can be misapplied and limited in scope, I frequently look at average annual returns for the investment reports of plan allocations. Generally 5-10% is typical over the twenty years I have been in this business.

A handful of the first annual plan reports I delivered for 2017 had a 17% average annual return. Another plan had 19%. So based on this small sample of different plans with different funds in their portfolio, some pooled, some individual accounts, 2017 was for some an exceptional year for gains. With 2018 much less robust the two years together are still better than average. Over time, though not without risk, equity investments seem to generate more gains.

Six Year Restatement Cycle For Documents

Standardized Prototype Plan Documents were to be restated by April 2016. That was a good time to make discretionary changes desired. The next cycle may be in 2021.

DB Plan document restatements are still pending I will be contacting plan sponsors when the restatements are available.

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Interesting similarity

The amount of retirement assets held in IRAs, Private Employer Retirement Plans, and Public Pension plans is estimated to be approximately $21 trillion dollars. The last I looked the National Debt was close to the same. With the new administration and national leaders under budget pressure they probably need to hear from their constituents about the importance of retirement benefits and the need to protect a system that seems to be working well in general. Thank you.

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