Mainspring Partner

Summer 2010


Using Behavioral Finance To Help Clients Improve Retirement Plans

Most retirement plans are based on expectations of "logical" behavior. But behavioral finance research shows that human behavior isn't always rational. Instead, inertia and procrastination, expectations of future willpower and a tendency to weigh losses more than gains often add up to employees who are unprepared for retirement. As you work with clients and prospects, applying behavioral finance concepts to plan design can help encourage employees to join the plan and to save more.

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New Research Paper Validates Use Of Behavioral Finance Best Practices

A new research paper, written by Dr. Alessandro Previtero of UCLA's Anderson School of Management and sponsored by The Standard, makes the case for applying behavioral finance principles to improve retirement plan design. Titled "Using Behavioral Finance to Help Employees Achieve Their Retirement Savings Goals," the paper also reviews Mainspring Managed as an example of how to incorporate these best practices. You can download it here or contact a pension consultant at 877.805.1127 for printed copies to share with plan sponsors.

The Standard Launches Simplified Automatic Enrollment Solution

The Standard launched enhanced retirement plan solutions on June 1, 2010, with new technology that simplifies administration for sponsors of plans with a Qualified Default Investment Alternative (QDIA). We offer a range of QDIA options – a single fund, a portfolio of funds, a family of target date funds or a managed account option – which allow us to be very flexible in meeting the needs of our advisor partners and plan sponsors.

Auto enrollment with our Mainspring Managed service as the QDIA combines behavioral finance research and proven best practices to help make retirement goals attainable for plan participants.

From an advisor's perspective, Mainspring Managed may offer more flexibility and transparency than many target date funds. With Mainspring Managed, the advisor works with the plan sponsor to choose the underlying investment options in the managed portfolios, based on the plan’s investment policy statement criteria.

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Register For ASPPA Advisor Webcasts, Sponsored By The Standard

The American Society of Pension Professionals & Actuaries (ASPPA) is offering a complimentary Advisor Webcast Series, sponsored by The Standard. You can register to participate in upcoming events and catch up on recorded webcasts at www.asppa.org.

For starters, review "Watch Out For Washington," presented June 22, 2010 by Brian H. Graff, Esq., APM, Executive Director/CEO of ASPPA. Graff, a key source on current thinking in Washington, covered the new 401(k) fee disclosure rule, likely new disclosure requirements on target date funds and DOL’s examination of the definition of a fiduciary.

Inside The Standard: A Look Into Our Individual Annuities Offering*

There's a lot of talk these days about the role annuities can play in a sound financial plan. You might like to know that The Standard has distinguished itself as a leader in the fixed annuity marketplace for more than 70 years, through innovative product design, desirable rates, competitive compensation and excellent industry ratings.

* Fixed annuities are distributed through Standard Insurance Company; product availability varies by state.

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The Mainspring Partner newsletter helps producers build their business by providing sales aids, learning opportunities, market commentary, regulatory and legislative updates, product enhancement announcements and articles to help improve the effectiveness of your clients’ plans.


 

Timely Webinars

The Department of Labor has just released its interim final rule on fee disclosure with an effective date of July 2011. At The Standard, we embrace fee disclosure as a way of doing business. Please join us on July 20 and August 12 for a two-part webinar hosted by Fred Reish as he reviews these new fee disclosure regulations. In addition, on July 22 we are pleased to offer "Self-Care for the Busy Professional: Strategies and Tactics for Being (and Staying) at Your Best"TM, presented by Ed Jacobson, Ph.D.

Check out our events calendar and add the dates to your calendar or view a printable webinar schedule (PDF; 70 KB).