Great Gray Trust Company

Interesting survey from BlackRock about how 24% retirement plans are considering adding investments with private market exposure to their 401(k) and other defined contribution retirement plans. That number should be higher. Retirement plan decisionmakers and advisors should select an investment option that is reasonably determined to maximize risk adjusted returns. Regardless of what investment is ultimately selected, the available universe should be considered, including private market investments that provide unique diversification benefits. No doubt, unique analysis is required when considering investments with private market exposure, and plan advisors and other fiduciaries should deploy expertise to support a robust process in considering them. But Jaime Magyera said it well: “Savers and employers alike are seeking more solutions.” More access and more choice provides expert fiduciaries with more opportunities to consider how to help participants make investments designed to maximize risk adjusted returns. https://lnkd.in/ehy-jmR7

Good read about the perils of frequent trading of investments -- and, by contrast, the value of saving in modern 401(k) retirement plans. These plans are designed to implement Jason Zweig's advice: "Investing as an enterprise is a lifelong endeavor to build wealth with patience and prudence; your long-term odds of making money are close to 100%." 401(k) investment lineups of diversified funds curated by fiduciaries with structural impediments to frequent trading provide the ingredients invest as an enterprise with a buy-hold strategy. And it's never a better time to be a buy-and-hold investor in a 401(k) plan. Investment costs have been trending down for larger plans for decades, and, with the removal of barriers to access lower-cost, well-governed, collective investment trusts (CITs), even the smallest plans can deliver top quality investment choices.

What happens when you combine auto features with a lower-cost investment vehicle? You reduce the regrets of not saving enough and not starting to save earlier in one’s career, and increase retirement readiness simultaneously. -Auto-enrollment and auto-escalation help overcome inertia -Collective Investment Trusts (CITs) now offer institutional pricing to smaller plans Together, they create a stronger foundation for long-term outcomes As Jason Levy puts it: “Fewer of the next generations' retirees should have these regrets—and that's a testament to the value of behavioral economics and collective investment trusts in modern retirement plans.” Are your clients leveraging both? Explore how auto features and CITs are changing retirement: https://bit.ly/4nqbdbb #PlanAdvisor #PlanSponsor #Autoenrollment #CITs

The investment landscape has evolved—and retirement plans must evolve with it. Integrating private assets into retirement portfolios, particularly through vehicles like collective investment trust (CIT) target date funds (TDFs), is a powerful way to democratize access and deliver institutional-grade opportunities to everyday Americans. Download our Panorix Target Date Series Product Brochure here to learn more: https://lnkd.in/enRTCy6j #TDFs #CITs #PrivateAssets #BlackRock #RetirementInnovation

Collective Investment Trusts (CITs) are showing industry-shifting adoption rates. CIT asset growth has outpaced mutual funds since 2018 per the Cerulli Associates US Monthly Trends Product Report. Learn the key drivers of CIT adoption: https://lnkd.in/gAuxZNNp Join Katie Stewart, Qualified Plan Strategist at Great Gray Trust Company, as she explains the key factors driving demand: good governance and oversight, fee flexibility and savings, and increased transparency. #401k #CIT #RetirementInnovation #PlanAdvisor

In our latest episode, we’re joined by the insightful Rick Unser, a Managing Director at Creative Planning Retirement Services, who shares a powerful analogy that resonates well with anyone in the retirement plan ecosystem. Rick compares finding the right golf instructor—someone who teaches in a way that clicks—to how he communicates with plan decision makers. It’s not about taking the club and swinging for them. It’s about helping them build confidence, understand the game, and improve their company’s plan participant’s dignified retirements. That’s the kind of client service we believe in at Great Gray Trust Company. Empowering our clients to grow confidently alongside us. Tune in to hear how Rick’s approach to communication is transforming client relationships—and maybe even your golf game. Listen now on Apple Podcasts: https://lnkd.in/gcTf8ANW #GrayToGreat #RetirementPlans #ClientSuccess #401k #PlanAdvisor