PLANADVISER - March/April 2022 - 17

saved and invested successfully until then.
Surz favors a U-shaped retirement
glide path, which involves de-risking prior
to retirement even more than targetdate
funds do. However, it also involves
increasing risk later in retirement, vs.
remaining conservatively invested.
" Your objective should be to protect
your lifetime savings, because, many
times, that's all there is, " Surz says. " So,
you need to start your retirement safe,
you need to end your working life safe,
but then as you spend down the assets,
you need to get back into the game and
increase your equity risk to increase the
lifespan of the assets. That's what creates
a U-shaped glide path. "
Roy says J.P. Morgan has looked at the
U-shaped glide path and the possibility
of de-risking portfolios before retirement
and then " re-risking " again in retirement
by putting more into equity. She says this
does produce better outcomes, but human
behavior can make it hard to implement.
" To ask somebody in retirement to re-risk
when they have a perceived declining risk
talking points
Investment Menus
In an NEPC survey, plans that reported using tiered design offer
investment lineup choices as follows:
Saving Phase
Spending Phase
Professionally Managed
* Target-date funds - 97%
* Managed accounts - 38%
* Target-risk or balanced funds - 38%
Self-Service
* Additional choices - 100%
* 3 or more index choices - 70%
Professionally Managed
* Target-date funds - 97%
* Managed accounts - 38%
* Target-risk or balanced funds - 38%
Self-Service
* Capital preservation - 99%
* Installment payments from plan - 88%
* Managed payout fund - 2%
* Deferred annuity - 1%
Expanded Choice
* Brokerage window - 63%
Expanded Choice
* Out-of-plan annuity purchase window
(offered by the recordkeeper)
Note: Respondents represent 137 plans with an average asset size of $1.7 billion and 12,200 participants.
Source: NEPC 2021 Defined Contribution Plan Trends and Fee Survey Results
tolerance-particularly those who had
rocky beginnings to their retirement-it
will be very difficult for them, " Roy says.
Reducing Risk
A research paper, " Reducing Retirement
Risk With a Rising Equity Glide Path, " by
Wade Pfau of the American College of
Financial Services and Michael Kitces with
Buckingham Wealth Partners, supports the
U-shaped glide path in theory by suggesting
that more aggressive investing through
retirement can protect against SOR risk.
" We find that rising equity glide paths in
retirement-where the portfolio starts out
conservative and becomes more aggressive
through the retirement time horizon-
have the potential to reduce both the
probability .. and the magnitude of failure
for client portfolios, " Pfau and Kitces wrote.
" The implications for financial planners are
significant; it implies that the traditional
approach of maintaining constant asset
allocations in retirement to which the
client is routinely rebalanced are actually
far less than optimal. " -Michael Katz
➜ Advisor Group
announced its
partnership with three
advisers who oversee
$481 million in total
client assets. Gerald
Kleber joins from Hornor,
Townsend & Kent LLC,
while Dustin Carr and Tad
Lyle join from Principal
Securities.
➜ Oak Hill Advisors,
an alternative credit
firm, hired Jeffrey
Cohen as its first head
of environmental,
social, governance and
sustainability.
➜ Halbert Hargrove, an
investment management
and wealth advisory
firm, promoted the firm's
president and chief
operating officer, J.C.
Abusaid, to CEO. The firm
also promoted Cecilia
Williams to COO and Kelli
Kiemle to managing
director of growth and
client experience.
➜ Verity Asset
Management
appointed Robert
McLean as chief
governance officer of
its newly launched
service offering: the
plan governance
platform Vynntana.
➜ WTW appointed Kate
Hollis as its new global
head of credit and
manager research.
planadviser.com March-April 2022 | 17
➜
http://www.planadviser.com

PLANADVISER - March/April 2022

Table of Contents for the Digital Edition of PLANADVISER - March/April 2022

A Digital Divide
Staying Power
The Prospects of Staying Virtual
Another Retention Tool
Is It Time to Let Go?
The Evolving Use of RFPs
Best Interest Reasons For a Rollover
Guaranteed Lifetime Income
PLANADVISER - March/April 2022 - C1
PLANADVISER - March/April 2022 - FC1
PLANADVISER - March/April 2022 - FC2
PLANADVISER - March/April 2022 - C2
PLANADVISER - March/April 2022 - 1
PLANADVISER - March/April 2022 - 2
PLANADVISER - March/April 2022 - 3
PLANADVISER - March/April 2022 - 4
PLANADVISER - March/April 2022 - 5
PLANADVISER - March/April 2022 - 6
PLANADVISER - March/April 2022 - 7
PLANADVISER - March/April 2022 - 8
PLANADVISER - March/April 2022 - 9
PLANADVISER - March/April 2022 - 10
PLANADVISER - March/April 2022 - 11
PLANADVISER - March/April 2022 - 12
PLANADVISER - March/April 2022 - 13
PLANADVISER - March/April 2022 - 14
PLANADVISER - March/April 2022 - 15
PLANADVISER - March/April 2022 - 16
PLANADVISER - March/April 2022 - 17
PLANADVISER - March/April 2022 - A Digital Divide
PLANADVISER - March/April 2022 - 19
PLANADVISER - March/April 2022 - 20
PLANADVISER - March/April 2022 - 21
PLANADVISER - March/April 2022 - 22
PLANADVISER - March/April 2022 - 23
PLANADVISER - March/April 2022 - Staying Power
PLANADVISER - March/April 2022 - 25
PLANADVISER - March/April 2022 - 26
PLANADVISER - March/April 2022 - 27
PLANADVISER - March/April 2022 - 28
PLANADVISER - March/April 2022 - 29
PLANADVISER - March/April 2022 - The Prospects of Staying Virtual
PLANADVISER - March/April 2022 - 31
PLANADVISER - March/April 2022 - Another Retention Tool
PLANADVISER - March/April 2022 - 33
PLANADVISER - March/April 2022 - Is It Time to Let Go?
PLANADVISER - March/April 2022 - 35
PLANADVISER - March/April 2022 - The Evolving Use of RFPs
PLANADVISER - March/April 2022 - 37
PLANADVISER - March/April 2022 - 38
PLANADVISER - March/April 2022 - Best Interest Reasons For a Rollover
PLANADVISER - March/April 2022 - Guaranteed Lifetime Income
PLANADVISER - March/April 2022 - C3
PLANADVISER - March/April 2022 - C4
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