Active vs. Passive Investing Styles: An Age Old Rivalry

Active vs. Passive investing styles is an age-old debate in the investing world. Investment managers on either side tend to be steadfast advocates of the merits of their approach. Active managers seek to exploit market inefficiencies by relying on analytical research, forecasts, and their own judgement and experience to decide which securities to buy, hold, and sell. Passive investing involves simply tracking an index to avoid the management fees and trading costs that can be a drag on performance by adhering to a buy-and-hold strategy.

In Active vs. Passive Investing Styles: An Age Old Rivalry, SBS traces the origins of the active and passive investing styles, dives into the historical performance and asset flow trends of each, and addresses how plan sponsors can make prudent decisions about employing each investing style.

Complete the form below to download your copy today. If you have any questions, or would like to begin talking to a retirement plan advisor, please get in touch by calling (855) 882-9177 or e-mail us at sbs@hanys.org.

Key Retirement and Employee Benefits Compliance Reminders for September

Due September 15th

• Extended due date for filing corporate tax returns and deductibility of contributions.

Due September 30th 

• Medical Loss Ratio (MLR) rebates due for the 2014 reporting year and beyond.
• Summary Annual Report due to participants, assuming filing of Form 5500 was not extended.

Download the full 2017 Retirement and Employee Benefits Compliance Calendar.

If you have any questions or would like to begin talking to an advisor, please get in touch by calling (855) 882-9177 or e-mail us at sbs@hanys.org.

Q2 Retirement Market Recap - Stocks and Bonds Advance Again in the 2nd Quarter

As of June 30, 2017 U.S. equities advanced for the seventh consecutive quarter, with the S&P 500 Index gaining 3.09% in the second quarter and 9.34% year to date. With the economic expansion and the bull market for stocks both in their eighth year, it is understandable that many investors are nervous about a market correction. Equity prices are reflecting a very solid U.S. economy, operating at full potential and full employment. Most of the economic data followed by investors has been positive:

• surges in Leading Economic Indicators, and the Small Business Optimism Index;
• accelerating global Gross Domestic Product (GDP) growth forecast;
• rising housing starts;
• strong Purchasing Managers Indexes (manufacturing and service sectors), strong hiring, declining unemployment, record low weekly unemployment claims and high quit rate;
• low inflation;
• strong consumer data: growth in average hourly earnings/real disposable personal income, household balance sheets, savings rates, credit scores, and record low household financial
• obligations ratio; and
• strong retail sales.

Read the Q2 Retirement Market Recap to learn more about the 2nd quarter stocks and bonds performance, and also review tips on "Understanding Non-Governmental 457(b) and 457(f) Plans".

If you have any questions, or would like to begin talking to a retirement plan advisor, please get in touch by calling (855) 882-9177 or e-mail us at sbs@hanys.org.

11 Questions Employers Should Ask About Stable Value Funds

Stable value investments have been a core investment option in defined contribution retirement plans since the 1970s and are an attractive alternative to money market investments due to steady returns and principal preservation guarantees. Stable value funds have proven their worth to investors during the protracted period of low interest rates present since the recent financial crisis. Consider the following comparison of 2007-2016 calendar year total return for the Vanguard Federal Money Market Fund (VMFXX)[i] to the SBS MetLife Stable Value Fund.

1. What is a stable value fund?

Key Retirement and Employee Benefits Compliance Reminders for July

Due July 29th

• Summary of Material Modification (SMM) for amendments adopted in 2016.

Due July 31st 

• Form 5500 due (without extension)
• Form 5558 due for automatic extension to October 16 for filing Form 5500.
• Form 5330 due to report and pay excise tax on prohibited transactions and nondeductible contributions made in 2016.
• Patient-Centered Outcomes Research Institute (PCORI) fees and Form 720 due. 

Download the full 2017 Retirement and Employee Benefits Compliance Calendar.

If you have any questions or would like to begin talking to an advisor, please get in touch by calling (855) 882-9177 or e-mail us at sbs@hanys.org.

Key Retirement and Employee Benefits Compliance Reminders for June

Due June 30th

• Corrective distributions for failed actual contribution percentage (ACP)/actual deferral percentage (ADP) test without 10% excise tax penalty for plans with EACA.

Download the full 2017 Retirement and Employee Benefits Compliance Calendar.

If you have any questions or would like to begin talking to an advisor, please get in touch by calling (855) 882-9177 or e-mail us at sbs@hanys.org.

Upcoming Webinar

Get Ready for Paid Family Leave

Effective January 1, 2018, New York State Paid Family Leave Program will provide New Yorkers job-protected, paid leave. Working families will no longer have to choose between caring for their loved ones and risking their economic security.

But how does this impact you as the employer?

This webinar will cover the new regulations for the Paid Family Leave law and how to prepare for it including:

• which employers are covered, and employees are eligible for benefits; 
• the differences between Paid Family Leave (PFL), Disability Benefits Law (DBL) and the Family Medical Leave Act (FMLA); and 
• what employers should do to get ready.

Thursday, May 18 at 11:00 a.m.

CLICK HERE to register