New TDF Evaluation Tool from Greenspring Wealth

Greenspring Wealth Management says it created the Target Date (k)larity product to help defined contribution plan fiduciaries engage in a prudent process to choose the most appropriate target-date fund (TDF) strategy for their participants.

“Target Date (k)larity is a comprehensive three-phase, seven-step target date evaluation process that aligns closely with Department of Labor guidance from 2013,” the firm explains.

Phase one begins by identifying the goals and needs of the plan and assessing participant demographics such as age, salary, tenure, as well as participation and deferral rates. In phase two, Greenspring uses the information gathered in the first phase to conduct product due diligence on multiple TDF options—analyzing areas such as asset-class exposure, glide path construction, performance, risk vs. return and fees. In phase three, Greenspring makes a TDF recommendation and documents the entire process with a written executive summary and 25-page recommendation report that sponsors can leverage in audits and regulatory reviews.

“In the past, the selection of TDFs has typically been tied to the choice of plan provider with little thought given to whether the solution was right for the plan and participants,” notes Joshua Itzoe, partner and managing director of Greenspring’s institutional client group. “But with TDF assets projected to capture nearly 90% of 401(k) contributions by 2019 and more than 30 different product alternatives, we believe the fiduciary burden for retirement plan committees to prudently select and monitor TDFs has never been higher.”

More information on the Target Date (k)larity product line is at www.greenspringwealth.com/tdk.