Retirement Planning & Regulatory Trends You Should Be Watching

Feeling out of the loop on industry happenings this summer? DWC stays on top of what's trending, and our self-proclaimed pension geeks often offer their insights in industry publications. Get caught up with this month's round-up: 

The Dangers of Putting Your 401(k) on Autopilot | Investopedia

Vanguard's 2018 "How America Saves" report is in, and reveals some interesting findings about how Americans are planning for retirement. Among the most significant trends is the use of target-date funds. These are attractive because they remove the responsibility of reallocating the portfolio from the plan administrator. 

However, DWC Managing Partner Keith Clark points out a primary issue with putting your 401(k) on autopilot: target-date funds only focus on one variable. According to Clark, defined contribution plan participants should be focusing on at least three variables: contribution rate, company matching contributions or profit sharing, and how much progress has been made toward retirement goals.

If you plan to pursue target-date funds in your retirement plan, remember that they look different with each provider. These funds do offer simplicity but at the end of the day you still need to do your due diligence to ensure you are moving your retirement plan in the right direction.

Read the full article on Investopedia here.

5 Big Regulatory Changes That Could Affect Your Business | Business News Daily

In other news, there are several federal regulations that are changing, or are likely to change in the near future, that could affect your business. Keeping an eye on these developments could save you time, money, and unnecessary headaches in the end.  Some of these regulatory changes include:

• Sales Tax: A recent Supeme Court decision marked the end of e-commerce businesses enjoying zero sales tax. This ruling could become extremely problematic for online retailers, who will now potentially have to navigate 50 state laws for dealing with sales tax for out-of-state businesses.
• Federal Tax Overhaul: Federal tax policy reform narrowly passed last year, and carries huge implications for businesses of all sizes. DWC Partner Jennifer Gibbs Swets speaks to how the Tax Cut and Jobs Act passed last year is impacting, and will continue to impact small business owners.
• General Data Protection Regulations (GDPR) in the EU: While the GDPR regulations are currently only being implemented overseas, many expect more stringent data security policies to follow in the U.S. While it is not clear how these regulations will change in the future, business owners should ensure this policy is on their radar to stay ahead of the changes.

Read the full article on Business News Daily here.