Since 2001, more defined contribution plans are adopting automatic enrollment and many are also implementing stronger savings rate defaults. Over 20% more people are saving in these plans. Meanwhile, the total savings rate has stayed the same.
An exciting football game can often be the bad kind of exciting—such as when your team’s high-priced quarterback fails to deliver on what his agent promised. The same might be said of some alternative investments.
The prospect of rising interest rates could make plan sponsors lose sight of the greatest risk to participants in target-date funds, along with the important reasons to invest in bonds.
Vanguard Fixed Income Group principal Josh Barrickman discusses how careful sampling, the use of a specialist model, and other techniques help his team’s bond-trading experts tightly tracking bond market indexes.
How do you know if your investment committee has the “right” stuff? Vanguard’s Paul Bosse shares committee best practices, from size, skill, and perspectives to choosing the committee leader based on an individual’s skill and not their title.
Index funds may be passive investors, but the Vanguard funds are not passive owners.
Retirement plan participants and investors are faced with what can be an overwhelming number of choices. Simplifying the decision-making process can increase participation and contributions.
The familiar may seem inherently less risky, but is that always true? Vanguard CEO Bill McNabb shares his thoughts on home bias.
The single-fund solution works for most plan participants. But for those who are more informed and engaged, adding a satellite investment on top of a TDF isn’t necessarily a mistake.
This blog discusses creating a cadence for planwide events. Margaret Rux, head of Vanguard Strategic Retirement Consulting, says a schedule of reenrollments and sweeps can improve plan participation rates and help get participants into age-appropriate investments.