As retirement plan participants transition from the accumulation phase to decumulation, the focus moves from building wealth to ensuring sustainable income—what’s also known as "value creation."

Danielle Kelso, Senior Institutional Solutions Consultant at Allianz Life Insurance Company of North America, joins the 401(k) Specialist Pod(k)ast to shed light on the changes and innovations shaping the future of retirement security. In her role, Kelso provides research, analytics and product expertise to the Allianz sales team, and shares her expertise on what retirement plan advisors and plan sponsors need to be thinking about when it comes to supporting a retiree’s lifestyle by ensuring stable income and managing risks effectively.

Key Insights:

Personalized Income Planning Replaces One-Size-Fits-All
The future of retirement planning lies in personalized strategies. Custom plans that integrate all income sources and reflect individual goals and spending habits offer better outcomes than generic investment approaches.

Redefining Value Creation in Retirement
Value creation is evolving beyond accumulating the highest portfolio balance. In retirement, it now centers on generating reliable, sustainable income that supports lifestyle and essential needs. This shift emphasizes peace of mind and financial security over raw returns.

Annuities Play a Key Role in Managing Retirement Risks
Modern annuities help mitigate key retirement risks such as longevity, market volatility, inflation, and personal life changes. Allianz research shows that portfolios including annuities significantly improve the probability of meeting income goals—by up to 25–40% in adverse markets.

See Also:

Exploring Guaranteed Income in DC Plan Trends with Allianz Life’s Matt Stubblefield

Solving the Portability Puzzle with Allianz Life’s Ben Thomason

Exploring Retirement Income Strategies with Joshua Grass and Todd Levy

The third edition of the retirement industry’s least traditional conference is coming up Aug. 3–5 in Milwaukee, Wis. To get the low-down, we spoke with organizer Sheri Fitts, a well-known expert in personal branding for financial advisors and 401(k) marketing. Audio here 

Sheri explains what sets the conference apart. It focuses on helping attendees strengthen their personal brand through storytelling and human connection. Additionally, she highlights key agenda items and explains why the event welcomes a broad mix of professionals.

For more information about SWAY | LIVE, check out the event website here: https://swaylive.sherifitts.com/SWAYLIVE2

Recently the Department of Labor’s (DOL) Employee Benefits Security Administration announced that it has rescinded its 2022 guidance that discouraged retirement plan fiduciaries from including cryptocurrency investments in 401(k) plans.

The move is seen as a removal of a big regulatory roadblock that forced plan fiduciaries to exercise “extreme care” before adding crypto to 401(k) investment menus, in line with the Trump administration’s expressed desire to eliminate what it sees as regulatory overreach and that investment decisions should be made by fiduciaries, and not D.C. bureaucrats.

Knut A. Rostad, Co-Founder and President of the Institute for the Fiduciary Standard, one of the most outspoken advocates of the need for a fiduciary standard to protect investors, is no fan of the decision, and explains why in colorful terms on this episode of the 401(k) Specialist Podcast.

Key Insights:

DOL Crypto Guidance Reversal Sparks Fiduciary Concerns
Knut Rostad sharply criticized the Department of Labor's decision to rescind its 2022 guidance discouraging crypto in 401(k)s, calling it a “sucker punch” to retirement investors and a dangerous shift away from fiduciary duty.

Fiduciary Oversight Diminishing Across Agencies
Rostad argues that the DOL’s move undermines its fundamental role and signals a broader decline in regulatory accountability—raising alarms about fiduciary standards at both the DOL and SEC.

Crypto and Private Equity Pose Participant Risks
Despite fewer restrictions, fiduciaries are urged to avoid adding crypto and private equity to plan menus due to volatility, lack of transparency, and custody issues—likening such moves to gambling.

SEE ALSO:

• EBSA Rescinds Guidance Warning Against Cryptocurrency in 401(k)s
• Better Markets Rips DOL Decision to Rescind 2022 Crypto Guidance

One of the most promising—and rapidly evolving—segments of the retirement plan industry is the small- to medium-sized business (SMB) market. With a wave of government incentives and employee expectations for workplace benefits on the rise, the time is ripe for innovation and growth.

To help unpack the challenges and opportunities in serving this critical market, we’re joined by Stan Smith, Chief of Growth at 401GO, a digital-first recordkeeper focused on making 401(k) plans more accessible and scalable for smaller employers.

Smith shares his front-line insights on what’s driving critical change in the retirement plan market, what advisors need to know to serve the SMB market, why automation and simplicity are keys to unlocking long-term success, and where he sees the retirement plan market heading.

Key Insights:

Recordkeeper evolution and AI integration: The discussion highlighted growing pressures on legacy recordkeepers and forecasted industry shifts toward AI-driven solutions, with an emphasis on internal automation and participant-centric innovation.

The SMB market is a massive growth opportunity: Stan Smith emphasized that with 1 million new plans expected by 2029, driven by mandates and Secure 2.0, the SMB (small-to-medium-sized business) market is ripe for advisor engagement and innovation.

Technology and simplicity are game-changers: 401GO’s strength lies in its “road to simplicity” approach—offering advisors and sponsors streamlined onboarding, real-time functionality, and intuitive UX/UI to remove traditional recordkeeping hurdles.

SEE ALSO:

A Smart Retirement Strategy for Business Owners Using Cash Balance Plans

401GO Expands Service Offerings with Apex Fintech Solutions Collaboration

401GO Grows Retirement Investment Offerings with Mesirow

The integration of guaranteed lifetime income solutions into workplace retirement plans remains a hot topic among plan advisors, sponsors and participants. To get an idea of the current state of these efforts, we talk with Matt Stubblefield, Aggregator Channel Director at Allianz, who highlights some key findings from a new report by the Allianz Center for the Future of Retirement, part of Allianz Life Insurance Company of North America.

The report that examines participant attitudes, preferences and demand for annuities in defined contribution retirement plans, and Stubblefield will share ideas on how plan advisors can put these learnings into practice to enhance their client offerings.

Key Insights:

Rising Demand for Lifetime Income Solutions
Allianz's research reveals that participants strongly favor guaranteed lifetime income options like annuities, with 86% preferring predictable income over managing a lump sum. This trend reflects growing concerns around market volatility, inflation, and longevity risk.

Millennials and Diverse Groups Lead Interest in Annuities
Millennials show the highest interest in adding annuities to their retirement plans, followed by Gen X and Baby Boomers. Black, Hispanic, and Asian-American participants express more interest than white participants, showing a shift toward securing stable retirement income across demographics.

In-Plan Annuities and Personalized Advice Are Preferred
Participants prefer contributing to annuities gradually via payroll deductions. They prioritize features like market protection, flexibility, and portability. Many view personalized advice and managed accounts as critical tools for effectively incorporating these products into retirement strategies.

See Also:

Solving the Portability Puzzle with Allianz Life’s Ben Thomason

Exploring Retirement Income Strategies with Joshua Grass and Todd Levy

Research Cited: The State of Lifetime Income: Participant Survey, conducted by the Allianz Center for the Future of Retirement in November 2024 with a nationally representative sample of 2,488 respondents aged 18+ who are currently contributing to an employer-sponsored retirement plan.

Fixed index annuities are designed to meet long-term needs for retirement income. They provide guarantees against the loss of principal and credited interest, tax-deferred accumulation potential, and the reassurance of a death benefit for beneficiaries.

This content is for general educational purposes only. It is not intended to provide fiduciary, tax, or legal advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Please note that Allianz Life Insurance Company of North America, its affiliated companies, and their representatives and employees do not give fiduciary, tax, or legal advice. Allianz does not provide financial planning services.

Guarantees are backed solely by the financial strength and claims-paying ability of the issuing insurance company.

Allianz Life Insurance Company of North America is not Affiliated with 401(k) Specialist

Allianz Life Insurance Company of North America (Allianz), 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. 800.542.5724 www.allianzlife.com

For institutional use only - not intended for use with the public.

The inaugural "Next-Gen 401(k) Report" from KWP Growth Partners is being released on April 8, unveiling a dozen transformative trends that are shaping the future of retirement plans, putting the spotlight on 60 leading digital-forward companies that are driving innovation in the workplace retirement plan space.

Will Prest, Managing Partner for KWP Growth Partners and Lisa Kottler, KWP’s Partner of Strategic Growth and Innovation, join this episode of the 401(k) Specialist Podcast to discuss the new report and what makes it a valuable new resource for firms throughout the workplace retirement plan ecosystem.

Key Insights

Next Gen 401(k) Report Launches with 12 Key Trends
KWP Growth Partners released the inaugural Next Gen 401(k) Report spotlighting 60 innovative companies and 12 transformative trends shaping the retirement industry. Designed for advisors, recordkeepers, asset managers, and fintechs, the report helps stakeholders identify emerging opportunities and collaborate for better retirement outcomes​.

Collaboration Over Competition in RetireTech
A major takeaway is the growing collaboration between legacy firms and challenger retiretech brands. Instead of competing, firms are forming strategic partnerships—like John Hancock with Swell—to broaden market access, accelerate innovation, and close the retirement coverage gap​.

Top Trends: AI, Embedded Solutions & Human-Centered Design
Among the top trends are AI-driven personalization, embedded solutions like guideline and Gusto's payroll integration, and user-friendly, jargon-free design. These trends are enhancing engagement, efficiency, and inclusivity across retirement platforms​.

See Also:

‘RetireTech Map 1.0’ Highlights Retirement Plan Industry Innovators

In this episode, we explore how large-cap value investing fits into a well-structured 401(k) plan investment menu with the help of Devin Armstrong, co-lead manager of the Invesco Comstock Fund, who is Senior Portfolio Manager and Director of U.S. Value Research at Invesco.

With market uncertainty and shifting economic conditions, value investing remains a compelling strategy for long-term retirement savers. Armstrong breaks down why large-cap value stocks help to diversify 401(k) plan holdings, and walks us through the team’s unique contrarian approach and classic value investing techniques that distinguish the Invesco Comstock Fund.

Key Insights

Importance of Large-Cap Value in 401(k) Plans
Large-cap value investing plays a crucial role in 401(k) investment menus by providing diversification and long-term stability. As market cycles shift between growth and value investing, maintaining exposure to both styles ensures a balanced portfolio and mitigates risk​.

Market Shifts and Investment Strategy
The economic environment is changing, with inflation and rising interest rates creating a more favorable backdrop for value stocks. Historical data shows that during inflationary periods, value stocks tend to outperform growth stocks, making them a strong consideration for retirement portfolios​.

Invesco’s Contrarian Approach
The Invesco Comstock Fund follows a disciplined, valuation-driven approach. The team seeks undervalued companies facing temporary challenges, aiming to capitalize on market dislocations while maintaining a long-term investment perspective​.

It was announced at the start of the recent Viking Cove Institute 2025 Industry Leaders Summit that well-known retirement industry veteran Amy Glynn would be taking the reins as President at the unique independent organization that boasts a membership of over 600 advisors across roughly 200 firms.

Glynn joins the 401(k) Specialist Pod(k)ast to talk about the transition, the recent summit, why advisors need independent guidance, and some key new initiatives set to roll out this year at Viking Cove.

Key Insights:

Industry Leadership Shift at Viking Cove Institute
Amy Glynn has taken over as President of Viking Cove Institute, bringing a fresh vision to support independent retirement advisors with resources and networking​.

Expansion of Financial Services & Initiatives
Viking Cove is launching new initiatives, including the VCI 100 annual insights, enhanced technology for community circles, and expanded fiduciary certification programs​.

Advocacy for Diversity & Women’s Leadership
Glynn is leading efforts to support women in the retirement industry through the Women in Pension Network, Women on Boards 50/50, and Viking Cove’s leadership summi

The “flavor of the month” in retirement plan ERISA lawsuits seems to be 401(k) forfeiture reallocation cases, where employers are accused of using forfeited funds to benefit the company instead of plan participants.

Richard Clarke, Chief Insurance Officer at Colonial Surety Company, a leading direct seller and writer of surety bonds, joins the 401(k) Specialist Podcast to address why plan sponsors need to remain vigilant and have the proper guardrails in place to mitigate the risk of a costly lawsuit.

He’ll also talk about some of the new SECURE 2.0 provisions and how plan sponsors can safeguard against fiduciary breaches resulting from the new provisions.

Key Insights

Rise in 401(k) Forfeiture Lawsuits: ERISA lawsuits targeting 401(k) forfeiture reallocations are increasing, with plan sponsors accused of misusing forfeited funds instead of reinvesting them for participants​.

Fiduciary Liability Risks: Plan fiduciaries face personal liability if forfeitures are not handled in accordance with ERISA guidelines, emphasizing the need for proper safeguards​.

Secure 2.0 Compliance Challenges: New Secure 2.0 provisions create compliance hurdles for plan sponsors, including higher RMD ages, emergency withdrawals, and expanded eligibility rules​

High-profile retirement plan advisor Holly Knight joins the 401(k) Specialist Podcast in this episode to discuss her recent move from NFP to Alera Group, where she is in the newly created role of “Director of Retirement Advisor Services.”

Knight explains the rationale behind the move and why she believes the young and growing company is uniquely positioned to deliver true financial integration for its clients, and how she plans to tackle the task of building scalable infrastructure.

Key Insights:

1. Financial Wellness Integration: Holly Knight emphasizes embedding financial wellness into benefits, retirement, and wealth services rather than treating it as a standalone offering.
2. Scalability & Innovation: Alera Group’s approach focuses on building scalable, high-impact financial services by leveraging technology, data, and strategic partnerships.
3. Retirement Industry Evolution: The shift towards holistic financial services aims to simplify participant engagement while enhancing decision-making and long-term outcomes.

SEE ALSO:

• Alera Group Names Retirement Advisor Services Director

A second Trump Administration, coupled with new leadership at the SEC and Department of Labor, brings the potential for significant changes in the regulatory environment in Washington, including discussions that could impact retirement tax incentives and their role in encouraging long-term savings.

For insight on what this could mean when it comes to the retirement industry, we check in with Eric J. Pan, President and CEO of the Washington, D.C.-based Investment Company Institute. ICI is the leading association representing the interests of regulated funds and the more than 120 million Americans who depend on them to achieve long-term financial goals including retirement.

He chimes in on ICI’s new “Help U.S. Retire” advocacy campaign, changes at the SEC, the need to protect the tax treatment of retirement savings, and why the 401(k) is envied by countries around the world.

Key insights:

1. Preserving Retirement Tax Benefits: The ICI’s “Help U.S. Retire” campaign emphasizes safeguarding retirement tax incentives for retirement savings amid potential policy changes.
2. Leveling the Retirement Playing Field: Efforts to include collective investment trusts (CITs) in 403(b) plans aim to provide broader investment options and reduce costs for participants.
3. Global Recognition of the U.S. 401(k) System: The U.S. 401(k) system is globally admired for its success in fostering retirement savings, serving as a model for other nations.

The Social Security Fairness Act was signed into law by President Joe Biden on Jan. 6 thanks to strong bipartisan support. The intent was to provide greater retirement security and “fairness” to people who have dedicated their careers to public service, with bill supporters saying the old law unfairly stripped many low-income government and public workers of the benefits they deserve.

But did they get it wrong? Andrew G. Biggs, senior fellow at the American Enterprise Institute and a nationally recognized expert on retirement issues and Social Security policy, makes a compelling argument for why the Social Security Fairness Act essentially amounts to a $200 billion giveaway to people who neither need the benefits nor paid into the system to receive them.

Key Insights

• Impact of Social Security Fairness Act: The repeal of WEP and GPO provisions increases Social Security benefits for public sector employees but raises concerns about fairness and financial sustainability​.
• Public Sector Pension Dynamics: Many public employees benefit from generous pensions and may now receive additional Social Security benefits, leading to "double-dipping" concerns​.
• Fiscal Consequences: The $200 billion cost of the legislation accelerates the depletion of Social Security trust funds, threatening long-term sustainability​.

With the new year quickly approaching, it’s a good time to think about some of the key trends to watch out for in 2025. Vanguard Head of Defined Contribution Research Jeff Clark—who is the author of the company’s popular “How America Saves” research—joins the 401(k) Specialist Podcast to talk about four 2025 retirement trends he anticipates will impact the workplace retirement plan market next year. podcast here 

Clark covers growing Roth contribution options, increases in auto enrollment, why to expect a broader focus on financial wellness, and continued momentum for in-plan lifetime income options.

t’s always important for retirement plan advisors to know the primary concerns and interests of 401(k) participants in order to be able to communicate with them effectively.

Invesco recently conducted some new research on the mindset of participants, and in this episode of the 401(k) Specialist Pod(k)ast, we talk with Greg Jenkins, Managing Director and Head of Institutional Defined Contribution at Invesco, who shares some surprising findings uncovered by the new research, and what advisors can learn from it.

Key Insights:

1. Participants’ Financial Concerns: Inflation, rising costs, and healthcare expenses are top concerns for 401(k) participants, significantly outweighing worries like job security.
2. Miscommunication on Retirement Income: Only 30% of participants recall receiving information about turning 401(k) balances into retirement income, highlighting a communication gap.
3. Target Date Fund Misunderstandings: A significant percentage of participants misuse target date funds, holding multiple TDFs or combining them with other investments for "diversification".

Invesco partnered with Ipsos to conduct an online survey of 583 defined contribution plan participants (May-July 2024). Participant respondents had following characteristics: Age 25-65 years old; Personal income $30,000+; Employed full-time for an organization for 1+ years; Employer has 1,000+ employees; Actively contributing to a defined contribution plan; Does not work in education, financial services, the federal government, or involved in the management of or decisions regarding employer’s retirement plans.

Source for all data: May 2024 online survey by Invesco and Ipsos. Invesco is not affiliated with Ipsos.

Invesco Distributors, Inc. is the US distributor for Invesco’s retail products.

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In this episode, we sit down with Pete Welsh, Managing Director of Retirement and Wealth at Inspira Financial, to explore the complexities of company mergers and their impact on retirement plans. 

Welsh sheds light on what happens when businesses with different retirement plans merge, outlining key outcomes and compliance concerns. He also provides expert guidance on plan terminations and offers insights into how companies can navigate these intricate processes while staying compliant with federal regulations.

The small to mid-size business retirement plan market is a key growth opportunity for advisors who are looking to expand their client base and provide much-needed benefit solutions to a traditionally underserved segment.

With all the new tax incentives for startup plans and state mandates to either offer a plan or have employees opted-in to a state-run auto-IRA program, the time has never been better to get smaller businesses on board with starting a plan—which can lead to additional opportunities on the wealth management side.

To learn more about the SMB market, we’re joined by Sean Jordan, Vice President of Small and Mid-Market Segments at Principal Financial Group, to discuss why advisors need be paying close attention to this segment. 

In this episode of the 401(k) Specialist Podcast, we’ll travel down the road to better participant outcomes with MFS Investment Management’s Jeri Savage, who will direct us through the key insights from the newly released 2024 MFS Global Retirement Survey. Podcast Episode Player 

Savage, Lead Retirement Strategist at Boston-based MFS, elaborates on some of the most impactful findings and explores how advisors and plan sponsors can help participants prioritize savings, improve retirement readiness, and navigate the complexities of target date funds.

Key Insights:

Target Date Fund Misunderstandings: Addressing misconceptions, especially the belief that target date funds guarantee income, will drive better participant outcomes.

Retirement Concerns: The 2024 MFS Global Retirement Survey shows that three-quarters of participants feel they need to save more to achieve better participant outcomes in retirement.

Competing Financial Priorities: Younger generations face significant financial challenges, like student loans, making it harder

Since the rapid rise in interest rates over the past few years, fixed income has come back into the spotlight. As the Federal Reserve begins cutting interest rates, retirement plan advisors might now be wondering how this shift will impact core bond and core plus bond portfolios.

To find out, we speak with Matt Brill, CFA, Head of North America Investment Grade Credit and Senior Portfolio Manager for Invesco Fixed Income. He’ll walk us through the basics of core bond and core plus bond portfolios, how the Fed’s intended “soft landing” will impact these sectors, and also highlight some of the fixed income opportunities that are most favorable for fixed income investors right now.

Key Insights

Due Diligence on Bond Funds: Fiduciaries should consider fees, performance against benchmarks, and the level of risk when assessing core and core plus bond funds. A balance between risk and stability is crucial to avoid bond portfolios behaving more like equities.

Impact of Fed Rate Cuts: The Federal Reserve's decision to cut interest rates is expected to benefit bond funds, making it easier to add bonds to portfolios and improve credit assets' performance, such as high yield and emerging markets.

Core vs. Core Plus Bonds: Core bond portfolios consist of highly liquid, lower-risk assets like treasuries, while core plus portfolios include higher-risk options, such as emerging markets and high-yield bonds, offering higher returns but also greater risk.

Not a Deposit | Not FDIC Insured | Not Guaranteed by the Bank | May Lose Value | Not Insured by any Federal Government Agency

Before investing, investors should carefully read the prospectus and carefully consider the investment objectives, risks, charges and expenses. For this and more complete information about the fund(s), investors should ask their financial professionals for a prospectus or visit invesco.com/fundprospectus

Past performance does not guarantee future results. An investment cannot be made into an index.

All data provided by Invesco unless otherwise noted.

Before investing, consider the Fund's investment objectives, risks, charges and expenses. Visit invesco.com/fundprospectus for  a prospectus/summary prospectus containing this information. Read it carefully before investing

The risks of investing in securities of foreign issuers, including emerging markets, can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.

Active trading results in added expenses and may result in a lower return and increased tax liability.

The risks of investing in securities of foreign issuers, including emerging markets, can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.

Junk bonds have greater risk of default or price changes due to changes in the issuer’s credit quality. Junk bond values fluctuate more than high quality bonds and can decline significantly over a short time.

As with any comparison, investors should be aware of the material differences between active and passive strategies. Unlike passive strategies, active strategies have the ability to react to market changes and the potential to outperform a stated benchmark. Other differences include, but are not limited to, expenses, management style and liquidity.  Investors should consult their financial professional before investing.

Invesco Distributors, Inc.

Considerable resources have been devoted to solving the challenge of portability in retirement savings over the past few years, and the stakes are high to get it right and cut down on costly an unnecessary retirement plan leakage.

In this episode, we talk with Ben Thomason, Head of Defined Contribution Distribution at Allianz Life Insurance Company of North America, to explore the importance of portability and the unique challenges it poses when it comes to in-plan guaranteed lifetime income solutions.

Thomason dives into the complexities of why portability matters for participants, preserving benefits, maintaining guarantees, and navigating the challenges of transferring retirement assets across plans and IRAs. He also talks about key factors advisors need to consider when assessing different in-plan guaranteed lifetime income options.

Key Insights:

Here are three concise key insights from the podcast episode:

• Technology's Role in Portability: Middleware technology is vital for maintaining seamless connectivity between record keepers and product providers, enabling easier portability of guaranteed lifetime income products and ensuring a consistent participant experience during transitions.
• Importance of Portability: Portability of retirement savings is crucial as workers frequently change jobs. In-plan guaranteed lifetime income solutions, such as annuities, need to ensure participants can transfer their benefits seamlessly without losing guarantees or facing disruptions.
• Product Design and Portability: Products designed as individual contracts offer significant advantages in portability over group contracts, as they maintain consistent benefits and guarantees when moved between plans, reducing administrative complexity and costs.

ERISA attorney Allie Itami, Partner at Lathrop GPM in Minneapolis, joins the 401(k) Specialist Pod(k)ast to talk about the status of the Department of Labor’s beleaguered fiduciary rule in light of recent stay rulings in Texas, and also chimes in on ERISA at 50 before addressing compliance challenges presented by annuities in 401(k) plans.

And click here to check out a recent blog post from Itami about ERISA’s 50th anniversary, which will be celebrated with a gala event in Washington D.C. on Sept. 12.

Itami is a partner in Lathrop GPM’s Business Transactions Group, specializing in employee benefits and is known for providing comprehensive counsel on fiduciary compliance under ERISA and the Internal Revenue Code.

Key Insights:

Annuity Challenges in 401(k) Plans: The inclusion of annuities in 401(k) plans remains challenging due to issues with fiduciary liability, stigmas associated with annuities (such as high fees and lockups), and a lack of comprehensive safe harbor protections under current regulations.

Fiduciary Rule Delays: The Department of Labor’s fiduciary rule, which was set to take effect in September 2023, has faced delays due to court rulings. Compliance on the original date is no longer a concern for service providers due to legal stays, and the likelihood of the rule being implemented soon is minimal.

ERISA’s Evolution: ERISA has adapted over its 50-year history, moving from employer-centered benefit plans like pensions to more individualized retirement options such as 401(k)s and IRAs, reflecting shifts in workplace benefits.

Morningstar Retirement President Brock Johnson joins a special 100th episode of the 401(k) Specialist Pod(k)ast to provide an inside look and share insights into the past, present and future of the comprehensive retirement planning solutions and investment research unit.

Johnson talks about how retirement solutions and research have evolved over the years, what’s behind a host of recent innovations, and provides a glimpse into the future.

Key Insights:

1. Morningstar Retirement’s Evolution and Mission: Morningstar Retirement has maintained a consistent mission since its inception, focused on empowering investor success by providing holistic advice and investment expertise, particularly in the retirement planning space. Over the years, they have expanded from offering a single product to a broad suite of services that now includes fiduciary services, custom target date offerings, and managed accounts.
2. Innovation and Future Focus: Morningstar Retirement emphasizes continuous innovation by listening to clients and expanding the definition of retirement solutions. They are focusing on offering more holistic and actionable retirement solutions, such as personalized annuity recommendations and advisor-managed accounts, to meet the evolving needs of the retirement planning industry.
3. Challenges and Industry Impact: One of the significant challenges highlighted is the lack of access to employer-sponsored retirement plans for many private sector employees. Morningstar Retirement is working to address this issue by making it easier for advisors and record keepers to manage smaller startup plans, aiming to improve access to retirement savings vehicles for a broader population.

Morningstar Investment Management LLC is a registered investment adviser and subsidiary of Morningstar, Inc. This recording is for informational purposes only and should not be considered investment advice. Opinions expressed are as of the date of recording; such opinions are subject to change without notice. The views and opinions of guests are not necessarily those of Morningstar and its affiliates. Morningstar Investment Management and its affiliates shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, the information, data, analyses or opinions or their use. Morningstar Investment Management does not guarantee the accuracy, or the completeness of the data presented herein. Firm data as of March 31, 2024. DC plan accessibility statistics available at https://press.aarp.org/2022-7-13-New-AARP-Research-Nearly-Half-Americans-Do-Not-Have-Access-to-Retirement-Plans-at-Work. Read more important disclosures here: https://www.morningstar.com/products/social-media-disclosures

The retirement landscape is undergoing a dramatic shift, characterized by unprecedented challenges such as increased longevity and unpredictable market conditions. Traditional retirement models centered solely on wealth accumulation are no longer sufficient. A more holistic approach is imperative to effectively manage risks, generate sustainable income, and ensure financial security throughout retirement.

To explain this transformation, joining us on the 401(k) Specialist Pod(k)ast are a pair of well-versed subject matter experts in Joshua Grass, CFA, Senior Strategic Accounts Associate at Allianz Life, and Todd Levy, Managing Director, RIA, with The Retirement Plan Company.

Josh and Todd share thoughts on how the landscape is changing, the new challenges emerging, how to adapt strategies that prioritize the creation of a sustainable income stream for retirees, and how to address participant concerns about retirement income planning.

Key Insights

Evolving Retirement Landscape:
Retirement planning is shifting from a primary focus on wealth accumulation to a more holistic approach emphasizing risk management and sustainable income due to increased longevity and demographic changes.

New Strategies for Retirement Income:
Industry experts highlight the importance of guaranteed lifetime income solutions, such as annuities, which provide stability and protection against market downturns, ensuring a reliable income stream throughout retirement.

Participant Concerns and Industry Response:
Many participants fear outliving their savings more than death itself. The industry is responding with services and products that offer personalized advice, inflation protection, and easy-to-understand income strategies, improving participants' financial confidence and retirement security.

Research cited in the podcast:

• Alliance for Lifetime Income, “Welcome to the Peak 65® Zone – A New Chapter in American’s Retirement Landscape,” January 2024
• Allianz Life conducted an online survey, the 2024 1Q Quarterly Market Perceptions Study, in February 2024 with a nationally representative sample of 1,005 individuals age 18+
• The Allianz 2024 Annual Retirement Study, conducted online in February and March 2024 with a nationally representative sample of 1,000 individuals age 25+ in the contiguous U.S. with an annual household income of $50k+ (single) / $75k+ (married/partnered) OR investable assets of $150k+
• U.S. Social Security Administration, Period Life Table, 2020, as used in the 2023 Trustees Report

Allianz Life Insurance Company of North America does not provide financial planning services.

Allianz Life Insurance Co

It’s quite rare for one person to manage a large-cap mutual fund for a consecutive span of 25 years, but that’s just what Kevin C. Holt, CFA, chief investment officer, U.S. Value Equities at Invesco, is celebrating this summer.

Holt and Devin Armstrong, who have been co-lead portfolio managers for the Invesco Comstock Fund since 2007, apply a unique contrarian approach and classic value investing techniques.

Holt joins the 401(k) Specialist Pod(k)ast to share more about the approach, what he looks for in a value stock, and why 401(k) participants need a well-diversified portfolio to reach their retirement saving goals.

Key Insights

• Invesco Comstock Fund:
  Kevin C. Holt has managed the Invesco Comstock Fund for 25 years, with a contrarian approach and classic value investing techniques.
• Contrarian Value Investing Strategy:
  Holt emphasizes a contrarian strategy that combines valuation metrics with behavioral psychology. He focuses on sectors where pessimism is high and valuations are low, like healthcare and consumer staples, adapting the strategy to changing market conditions.
• Importance of Diversification in 401(k) Plans:
  Holt advocates for well-diversified portfolios within 401(k) plans, stressing that diversification across growth and value stocks is crucial due to the unpredictable nature of market cycles and the historical performance during different inflationary periods.

Disclosures

Not a Deposit | Not FDIC Insured | Not Guaranteed by the Bank | May Lose Value | Not Insured by any Federal Government Agency

All data provided by Invesco unless otherwise noted.

The opinions expressed are those of the author as of July 22, 2024. These comments should not be construed as recommendations, but as an illustration of broader themes. Forward-looking statements are not guarantees of future results. They involve risks, uncertainties and assumptions; there can be no assurance that actual results will not differ materially from expectations.

Diversification does not guarantee a profit or eliminate the risk of loss.

This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.

P/B (Price-to-Book): it compares the price of the stock with its book value (total assets minus total liabilities). It is commonly used for banks. P/S (Price-to-Sales): it compares the price of the stock with its sales (renevues) from the last twelve months. It is commonly used for companies that have losses. Price-to-earnings (P/E) ratio measures a company's share price relative to its earnings per share (EPS).

Enterprise value-to-sales (EV/Sales) is a financial ratio that compares a company's total value to its total sales revenue.

"The Art of the Answer" is an Invesco Global Consulting program and is for illustrative, informational and educational purposes only. We make no guarantee that participation in any programs or utilization of their content will result in increased business for any financial professional. 

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No matter how easy plan sponsors try to make it for employees to participate in their company-sponsored 401(k) plan, too many workers still aren’t enrolling.

Our guests on today have some ideas on dealing with this problem—centered on how instead of making it easy to participate, making it even harder to avoid enrolling in the plan in the first place.

Marc Howell and Felix Okwaning, who are both Managing Directors—Enhanced Plan Design at Principal Financial Group, share some great ideas on how to use a combination of automatic features including “auto-sweep” to boost enrollment and deferral rates, dramatically helping employees get adequately prepared for retirement.

Despite offering unique tax advantages, lots of people remain unaware of health savings accounts (HSA)—and even many who are using them aren’t using them to anywhere near their full potential.

Jeremy Keil, CFP, CFA, a retirement-focused financial advisor and host of both the Retirement Revealed Podcast and Mr. Retirement YouTube channel, joins the 401(k) Specialist Pod(k)ast to discuss the most common mistakes he sees people with HSAs making, as well as how to help correct these mistakes with strategies that make the most of their exceptional capabilities.

Key Insights Include:

Common HSA Mistakes: Many employees mistakenly believe they can only use the health savings account provided by their employer, limiting their options. Another prevalent error is confusing HSA contribution limits with FSA limits, resulting in underfunding their HSAs. Additionally, many fail to invest their HSA funds for long-term growth, missing out on the substantial tax advantages and investment potential HSAs offer.

Maximizing HSA Benefits: To rectify these mistakes, employees should be aware they can transfer their health savings account funds to any provider offering better terms. Maximizing contributions up to the IRS limits ($4,150 for individuals and $8,300 for families in 2024) is crucial. Investing health savings account funds similarly to a traditional IRA can significantly enhance their retirement savings, capitalizing on the unmatched tax advantages of HSAs.

Strategic HSA Management: Advisors recommend finding the best health savings account provider, considering factors like interest rates and investment options. Real-world examples show substantial gains from switching to high-yield HSAs and avoiding unnecessary fees. Proper management, such as keeping receipts for future reimbursements, allows for strategic use of HSAs, ensuring funds grow tax-free and can be utilized efficiently in retirement.

SEE ALSO:

• Checking the Pulse of the HSA Market with Devenir’s Eric Remjeske

• HSA Contribution Limits Increased Slightly for 2025