BCG Blog

The public is having a very heated conversation on aging and capacity, especially when it comes to holding political office. Some may even want a break from the coverage of older politicians and their foibles. But one arena that may need more discussion of longevity and aging is retirement planning.

2023 ranks among the highest for number of lawsuits against plan administrators in the last decade or so, and 2022 had nearly 100 such suits. One reason for the spike is the 2021 Supreme Court ruling in Hughes v. Northwestern. This summer, the lower court ruled on the Hughes case, and its findings further muddied the waters on recordkeeping fees.

Into the brave new world of post Secure Act 2.0 benefit administration comes new and challenging accommodation requests for things such as mental health and long COVID-related illnesses, which may create confusion over balancing and discrimination testing a plan. So, we can only imagine the dismay some benefits advisors may have over news noting an increased favorability of pensions.

Last Fall, we noted several cases before the U.S. Supreme Court that could impact the power federal agencies have to regulate and prosecute plan sponsors. Many of those cases are now working their way through the Court and may have profound impact on agencies such as FINRA, the SEC and the Consumer Finance Protection Bureau. They may also impact the Department of Labor and its investigative wing, the EBSA.

Two recent studies released in January of 2024 point in opposite directions: one indicates that inflation may be slowing down quieting consumer concerns, others say inflation is still top of mind for most workers. What gives? It may be where investors live. For advisors struggling with determining how to manage inflation’s impact on their clients, digging into these studies may help.

Financial advisors may feel like they are finding themselves between a rock and a hard place lately and both rock and hard place may be the doing of the Department of Labor. If you thought the proposed fiduciary rule was the only problem popping up, beware the independent contractor definition changes.

Three major supreme court opinions may be coming soon that could have significant implications for financial advisors and they may not be the ones you’ve heard about. These cases may be more significant: they may reduce the ability of agency regulators to oversee, investigate, and fine financial advisors and institutions by changing a long-held rule deferring to federal agencies in their decisions.

Can you, or can’t you? The state of the regulations on ESG for ERISA-related and public fund fiduciaries is anything but clear. Here’s a roundup of the current activity.

New alternative investments are always worth watching. They show changes in technology, how people feel about asset classes, or their level of insecurity about volatility in the stock market. A new move on micro-equity, or crowdsourced fundraising highlights all of those themes. This time with cake.

Looking for a way to lighten up your stress? The experts all suggest delegating more of your to do list. We know it’s easy. But one task you can delegate to others is building your prospect database.

Potentially risky microloans aren’t for all investors, but they may help some investors diversify their accounts and given the potential for consolidating (and getting out from under) credit card debt, they may also help a lot of middle class would-be borrowers.

Socially Responsible Investing, such as ESG Funds, continues to show strong performance. Here’s an update on how the SRI market has faired since our last post in 2017.

The intention behind ERISA was to ensure that those who manage retirement plans do so to benefit the plan participants and make good choices about investing. Those drafting the law defined certain individuals involved with retirement plans as fiduciaries to impose the duties of prudence and loyalty, specifically those regarding revealing conflicts of interest, on those involved in advising retirement funds.