Products September 27, 2018

403(b) and 457(b) Plan Recordkeeper Enhances Platform

IPX is a modernization of traditional recordkeeping platforms that serve plans with multiple providers.

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FPS Group, LLC, a solutions provider for retirement plan professionals operating in the 403(b) and 457(b) markets, has enhanced its Investment Provider Xchange (IPX) platform with user interface and user experience updates.

The changes streamline the investment, administrative, operational and communication processes for 403(b) participants, plan sponsors and advisers. IPX is a modernization of traditional recordkeeping platforms that serve plans with multiple providers.

Features on the enhanced IPX platform include:

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  • Adviser-assisted participant enrollment – This feature overcomes what has traditionally been a major hurdle preventing participants from taking advantage of their employer-sponsored plans, by removing the paperwork and time delays. Entrusted advisers, with participant approval to engage in the enrollment process on their behalf, can now complete the necessary steps to quickly and efficiently enroll participants via the IPX Platform.
  • Adviser interaction and communication – Participants are able to view their adviser’s information and give them permission to carry out various tasks on their behalf, including investment changes and initiating transfers. Both the participant and adviser have separate login credentials to cut down on potential complications with audits and to comply with best practices.
  • Storage information and reporting – Participants and advisers can prepare reports for any time period of their choice. All information is stored by transaction in perpetuity. While most providers only store this data for 12 or 24 months, IPX doesn’t remove data, enabling participants to view pending transactions, documents, transaction certificates and public notices in an organized, protected vault.
  • Tailored adviser selection – Instead of viewing a list of approved products, participants and plan sponsors are able to see a culled-down list of advisers based on their geography, school district and other factors. This facilitates better tracking and security for plan sponsors, as they can regulate who has access to their campus and be confident that advisers are only selling authorized products.
  • Personalized resources – In addition to the resources already available on the platform, plan sponsors can design personalized education, resources and materials for their participants to equip them with the knowledge to be successful.
  • Dedicated Financial Wellness Resource Center – In response to the growing demand for financial literacy, the platform now includes videos, interactive calculators and articles to address the most sought-after topics by participants.
The changes are effective immediately and support will be available to current customers via phone and educational webinars. For more information, visit www.ipxplatform.com.
Investing September 27, 2018

LGBTQ Retirement Savers Need to Invest More Conservatively

Stock market volatility and a major downturn in the stock market seem worrisome for the LGBTQ community as people approach or live in retirement. MassMutual suggests adviser conversations and TDFs may help.

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Compared to other retirees and pre-retirees, lesbian, gay, bisexual, transgender, queer or questioning (LGBTQ) Americans are more inclined to see a need to preserve their retirement savings yet are more likely to take bigger risks when it comes to investing, according to a new study from Massachusetts Mutual Life Insurance Co.

 

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Retirees and pre-retirees who are LGBTQ are more likely to say they should become more conservative with their money as they approach retirement (42%) than to maintain a more aggressive investment strategy (28%), the MassMutual LGBTQ Retirement Risk Study finds. Yet, 65% of LGBTQ respondents describe their investment mix as growth- rather than preservation-oriented compared to 52% of the general population.

 

Thirty-one percent of LGBTQ respondents acknowledge that they may be taking more risk than they should compared to 22% of other retirees and pre-retirees. Meanwhile, 17% of both LGBTQ respondents overall and LGBTQ retirees say they want their retirement investments to significantly outperform the market compared to 13% of the general population overall and 9% of general population retirees.

 

“MassMutual’s study shows that many LGBTQ retirees and pre-retirees may benefit from consulting a financial adviser about their retirement investment goals, something less than half currently do, and may benefit from help leading into retirement and securing their finances through retirement.,” says Catherine Cannon, head of Personal Markets at MassMutual. “Of those respondents in our study who do work with  a financial adviser, six in 10 say their adviser has encouraged them to change their investment mix and 87% of those folks were advised to become more conservative as they enter retirement.”

 

Overall, LGBTQ pre-retirees plan to retire later than the general population and are likely to expect that their retirement income will last at least as long as needed. While retirees and pre-retirees overall expect to live 24 years in retirement, the study finds, LGBTQ respondents say they expect to spend two fewer years retired.  Both the general population and LGBTQ respondents peg their retirement savings to last 25 years.

 

Despite being relatively confident in their financial prospects in retirement, stock market volatility and a major downturn in the stock market seem worrisome for the LGBTQ community as people approach or live in retirement. Nearly three-quarters of LGBTQ respondents (74%) expressed concern about volatility, with 27% saying they are “very concerned.” However, LGBTQ respondents indicate greater comfort in taking investment risk, with only 20% willing to accept “below average” or “low investment returns” in exchange for greater safety, according to the study.

 

“One strategy that may help some LGBTQ retirement savers balance investment goals such as growth and safety is the use of target date funds (TDFs) when available through their employer’s 401(k) or other retirement savings plan,” Cannon suggests.

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