I acknowledge that I am a financial representative or Third Party Administrator, and that I take full responsibility for ensuring that this material has been approved by my supervising broker-dealer firm. More IRA options. Participation in the Managed Account Program (program) does not guarantee investment success. Please contact your financial professional or call 866-222-7498 to obtain a Plan Disclosure Document or prospectus for any of the underlying funds. NOT FDIC INSURED. at 1 888-628-5590 or visit InvestmentFraudLawyers.com for a free consultation on recovering your losses. Consider seeking professional help in reviewing your investment policy statement, and consider engaging a specialized retirement plan consultant or advisor who can provide fiduciary skills and expertise not residing within the ranks of your internal benefits and investment staff. Even a subset of a plan’s participants sharing many of the same demographic characteristics can demonstrate a striking range of different financial circumstances. If your plan already has an investment policy statement, you may wish to compare it with the CFA Institute’s “Elements of an Investment Policy Statement for Institutional Investors.” Are you confident your investment policy statement will help you meet today’s exacting standards of fiduciary care? Also, because loan funds aren’t invested, you miss out on potential market appreciation—which can be substantial after a large drop. John Hancock USA and John Hancock New York each make available a platform of investment alternatives to sponsors or administrators of retirement plans without regard to the individualized needs of any plan. The point for sponsors to take away: Some participants are bound to need much more help than others—and the shared investment lineup needs to work for all of them. When it comes to sponsoring a defined contribution (DC) plan—and managing the accompanying fiduciary risks—documenting your process is job one. 7 “U.S. Box 17603 ■ Baltimore, MD 21297-1603 ■ 866-222-7498 ■  jhinvestments.com/529. Many plans cover administration expenses through a flat fee allocated to each participant. Contributions to 401(K) Retirement Plans,” Pension Research Council, 2003. JH Enterprise is a registered trademark of John Hancock Life Insurance Company (U.S.A.). Product features and availability may differ by state. Get in touch . Group annuity contracts and recordkeeping agreements are issued by John Hancock Life Insurance Company (U.S.A.), Boston, MA (not licensed in New York), and John Hancock Life Insurance Company of New York, Valhalla, New York. 11 John Hancock, 2018. Your monthly and total payments on a credit card with 19% interest will be 33% higher than your payments on a five-year 401(k) loan with 5.75% interest.¹. Unless otherwise specifically stated in writing, each such company does not, and is not undertaking to, provide impartial investment advice or give advice in a fiduciary capacity. Investing involves risks, including the potential loss of principal. Which asset categories merit representation in the lineup? 401(k) loans have unavoidable drawbacks, but you can lessen their impact by doing these four things: While 401(k) loans can be a convenient alternative to a high-interest credit card, it’s important to remember that these loans can be harmful to your retirement plan since the funds you withdraw aren’t invested until they’re repaid, loan interest is taxed twice, and a loan not repaid can trigger taxes and penalties. A health crisis may exacerbate other preexisting political, social, and economic risks. One of the most powerful ways an individual can save for retirement and prepare for a financially confident future is through periodic investment plans offered at work. You'll get access to a wide range of practice management and retirement plan tools and resources from John Hancock. If you’re thinking of borrowing from your 401(k), plan ahead by asking your 401(k) service provider about the borrowing process, such as: Keep in mind that loan checks are usually mailed, so they may take time to reach you. The complaint says that the John Hancock used the program, one of the most significant 401(k) applications from the U.S., to market John Hancock’s proprietary financial products and make profits for its own business. Here we look at six things to consider when building an investment menu for employees. Using information drawn from our participant database of plans administered by John Hancock, we studied this particular type of intraplan diversity and highlighted a manufacturing company’s plan as a representative example to illustrate the point. In this case, you’ll end up with fewer shares than you started with and lower account growth than if you hadn't taken the loan. Todd J. Cassler, Head of Institutional Distribution. According to the records, Ms. Baker engaged in the John Hancock 401(k) plan from 2014 to 2019. John Hancock Retirement Plan Services, LLC, John Hancock Life Insurance Company (U.S.A.), and John Hancock Life Insurance Company of New York each make available a platform of investment alternatives to sponsors or administrators of retirement plans without regard to the individualized needs of any plan. (1). (1), The Coronavirus Aid, Relief, and Economic Security (CARES) Act (3), What questions should I ask about my 401(k)? Unless otherwise specifically stated in writing, each such company … Product features and availability may differ by state. John Hancock Investment Management LLC is the investment advisor for the closed-end funds. 401(k) contribution limits are higher for employees aged 50 or older, who may make an additional catch-up contribution of $6,000.⁴. Most 401(k) providers offer an employer match, meaning the company will contribute an annual percentage of eligible employees’ compensation to their 401(k) account. Both John Hancock Life Insurance Company (U.S.A.) and John Hancock Life Insurance Company of New York do business under certain instances using the John Hancock name. A rash of 401(k) class-action lawsuits and low participation rates have revealed rifts between plan sponsor intentions, on the one hand, and participant perceptions of actual practices, on the other hand. Participants can choose investments based on their investment preferences and experience, time until retirement, and tolerance for risk. John Hancock Freedom 529 is an education savings plan offered by the Education Trust of Alaska, managed by T. Rowe Price, and distributed by John Hancock Distributors LLC through other broker-dealers that have a selling agreement with John Hancock Distributors LLC. The lawsuit states that the 401(k) plan supposedly had extremely high administrative expenses and fees during the course period, which dates back to 2014. Since 2006, failing to grasp the significance of nuances tied to their fiduciary duties has cost plan sponsors $460 million in legal settlements—with more cases pending.⁶ The majority (57%) of plan sponsors report being at least somewhat concerned about potential litigation according to one study, which concluded that “in the current litigious climate, plan sponsors are closely evaluating all decisions from a lens of how it could expose the plan to litigation risk.”⁷, While many legal challenges are at least nominally about fees, the plaintiffs’ attorney at the center of much of the recent ERISA litigation articulates a common thread behind the grievances that initiated his clients’ lawsuits. Once you identify the right set of questions to ask and then commit to setting the answers down on paper, building the investment lineup becomes a more manageable exercise in finding the funds that best equip the plan’s participants to meet their retirement savings goals. Does it address the current needs of your plan participants, regardless of whether they’re still working or retired? Investment advisory services for Morningstar Retirement Manager are provided by Morningstar Investment Management LLC. You worked hard for decades to build financial security. 1 Limits are for 2019 and can be subject to change annually. The target date is the expected year in which participants in a target-date portfolio plan to retire and no longer make contributions. John Hancock's stable value funds offer plan sponsors and participants a capital preservation option Plan sponsors can use stable value to satisfy the capital preservation needs of: 401 (k) plans 401 … There is no guarantee that the results shown will be achieved, and the assumptions provided may not be reflective of your situation. Product features and availability may differ by state. With 401(k)s and other DC plans, most responsibility falls on employees to contribute to their retirement savings. These defined contribution (DC) plans differ from pension plans, also known as defined benefit (DB) plans, which were common in the past but are increasingly rare today. Does it have a reasonable chance of helping employees achieve retirement readiness? ABS News & Research is dedicated to providing quality investment insight and information from experienced financial professionals and journalists. We’ve sent an email to {0}. Please check with your organization before using this information. Contact Haselkorn & Thibaut, P.A. We isolated the plan’s participants within a specific cohort—those aged 40 to 49 with at least a decade of service at the firm. Foreside is not affiliated with John Hancock Investment Management Distributors LLC  or Dimensional Fund Advisors LP. John Hancock Life Insurance Company (U.S.A) and John Hancock Life Insurance Company of New York are collectively referred to as “John Hancock”. The prospectus includes investment objectives, risks, fees, expenses, and other information that you should consider carefully before investing. NOT BANK GUARANTEED. All rights reserved. John Hancock Retirement Plan Services, LLC, John Hancock Life Insurance Company (U.S.A.), and John Hancock Life Insurance Company of New York each make available a platform of investment alternatives to sponsors or administrators of retirement plans without regard to the individualized needs of any plan. Participants who lack the time or knowledge to select individual investments can choose investment options that offer a professionally allocated mix of funds. John Hancock Retirement Plan Services, LLC, 200 Berkeley Street, Boston, MA 02116. Financial planning and investment advice provided by John Hancock Personal Financial Services, LLC (“JHPFS”), an SEC registered investment adviser. Our in-plan advice offers—John Hancock Personalized Retirement Advice and advisor-managed accounts—provide a strategy based on a participant's age, finances, spousal assets, and other personal information. You’ll repay this amount, plus interest, back into your 401(k) account over time through payroll deduction. We can assume that the typical participant starts making deferrals at age 25 while earning a salary of $40,000, which grows at about 1.8% annually over the next four decades, and then retires at age 65 with an ending annual salary of $84,000. John Hancock Retirement Plan Services, LLC offers administrative or recordkeeping services to sponsors and administrators of retirement plans. All-in-one 401(k) investment options you’re most likely to see include: Some plans offer a qualified default investment alternative, usually a TDF or target-risk fund, that becomes participants' investment option if they don’t select one on their own. For more information about our stable value funds, contact your John Hancock representative. ETF shares are bought and sold through exchange trading at market price (not NAV), and are not individually redeemed from the fund. NOT BANK GUARANTEED. NOT BANK GUARANTEED. Fees for this service are based on a tiered schedule and vary by account balance. Does it stand a reasonable chance of helping employees achieve retirement readiness? If your plan allows it, you may be able to borrow up to 50% of your vested balance—that's 50% of the portion of your account that’s yours, without conditions. Group annuity contracts and recordkeeping agreements are issued by John Hancock Life Insurance Company (U.S.A.), Boston, MA (not licensed in New York), and John Hancock Life Insurance Company of New York, Valhalla, New York. However, for plans that elect to allocate expenses on an asset-weighted basis, then fees need to be proportioned across the participant base accordingly.

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