Matt’s Blog

Matt’s Blog

Take Advantage of Fee Disclosures

For plan sponsors, now is the time to take advantage of the fast-approaching world of fee disclosures. Whether you use a broker, consultant or go direct, the soon-to-be-implemented 408(b)(2) fee disclosures provide a real opportunity to get a handle on plan costs as well as to implement several best practices when it comes to fees. Here’s a step-by-step overview of the process I recommend: Ask the recordkeeper what it needs to recordkeep the plan. Also ask how much the current investment options generate in terms of “revenue share.” If the current investments are generating more in revenue sharing than is [ read more ]

Blue Prairie Group’s Stable Value Database, Second Generation

Now that our SV d-base is up and running, we are already working on the next generation. Not only are we adding more providers to the d-base, we are also creating a ranking scheme to evaluate the various products. The idea is simple – create a comprehensive, yet to easy-to understand way for sponsors to evaluate different products. The approach we take is similar to the approach we use for both our Investment and Plan Health Smartcards™.  We look to add our ranking methodology to our SV d-base no later than the Q1 2012 edition. The other internal database project [ read more ]

The BPG Plan Health Smartcard™

We created a powerful diagnostic tool – the BPG Plan Health Smartcard™. It’s designed to give DC plan sponsors a holisitic overview of their plan expressed as a numerical score.  The methodology is based on two fundamental assumptions: that the purpose of an ERISA-sponsored retirement plan is to maximize the chance that participants will achieve retirement security and that a plan should be run in such a way as to minimize organizational risk and the personal liability associated with being a fiduciary to a plan. The BPG Plan Health Smartcard™ looks at a plan from a total of 6 different [ read more ]

Hedging Against Volatility

The S&P 500 was flat for the year but what a ride…The extreme volatility makes me wonder about plan participants close to retirement – how do they hedge against extreme volatility? One strategy is to park assets in their plan’s stable value option where – depending on the stable value product used – it should be generating somewhere between 1.5 – 2.5 percent. The rationale is simple: at least it stays current with inflation and the principal is protected. The problem with this approach is that it: (1) assumes that a participant has access to a stable value option; (2) [ read more ]

Welcome !

Welcome to our new website ! We’ve added quite a bit of new content and we’ll be adding to that in the next few weeks. Please bear with us –I’m sure there will be some hiccups as we refine the site. This is my first blog and I’ll be learning as I go along. I’ll be writing about 401(k) best practices, the retirement crisis in this country and proven strategies for helping participants achieve retirement security.  Take care everybody Matt