Products October 3, 2007

Portland Company to Provide DC Plan Fee Benchmarks

The former CEO of JPMorgan Retirement Plan Services has teamed up with two other partners to form a company that provides benchmarking services for defined contribution plan sponsors with plans of any size.

Reported by

Adrien Martin

Fiduciary Benchmarks, Inc. is meant to help plan sponsors understand how their plan costs compare to the value they are getting from service providers, according to a press release.

The founding partners of the Portland -based company include Tom Kmak, former CEO of JPMorgan Retirement Plan Services, Ron Eisen, President of Investment Management Consultants (IMC), and Olena Berg Lacy, former Assistant Secretary of Labor and currently Director and Senior Adviser for Financial Engines.

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“Every single plan sponsor I know understands the intense amount of scrutiny this issue is receiving in the press, the courts and Washington,” Kmak said in a press release. “As this industry continues to evolve, plans sponsors, participants and service providers will be well served by having an objective and independent expert provide them the information they need to make important decisions.”

IMC Director Matt Golda and IMC Principal David Bodmer will also be a part of the company, according to the announcement.

In Practice October 3, 2007

Financial Advice More Wanted Than Workout Advice

People want financial guidance in planning for retirement and they want their adviser to tell them what they should do, but they want to retain personal responsibility for what they choose to do with that guidance.

Reported by

Alison Cooke

If told they need to save more money now to maintain their lifestyle in retirement, nearly half (46%) say that they would ask a financial adviser to “tell me what I should do,” according to the findings of a recent survey conducted on behalf of the Securities Industry and Financial Markets Association (SIFMA). Nearly one-third of respondents would say “make the process easy for me.”

More than half (53%) of 1,001 people polled said they would choose to receive financial advice over that of a personal trainer, interior designer, or fashion consultant if given the opportunity.

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“When it comes to retirement planning, a striking proportion of adults across every segment of the population crave financial advice,” said Marc Lackritz, president and CEO of SIFMA, in a statement. “Clearly guidance and ease are significant motivating factors when it comes to saving for retirement. This survey suggests people are paying attention, prioritizing and want help.”

Half of the survey respondents say they evaluate their financial plans for retirement at least once a year; compared to one-quarter who say “occasionally, when I get around to it;” and 19% who say they “never” do.

Regular planning leads to more confident and comfortable investors, the survey found. Nearly a third of American adults continue to describe themselves as either “apprehensive,” “panicked,” or “clueless” about their retirement preparedness, and young people (those age 18-34) are the most likely to admit feeling clueless about saving for retirement, with 22% agreeing with that statement.