Towson, Md. – February 3, 2015- Greenspring Wealth Management, Inc., recently ranked as one of the country’s Top 100 registered investment advisors (RIAs), is pleased to announce the official launch of the firm’s newest innovation, Target Date (k)larity®. With the explosive growth of retirement assets invested in target-date funds (TDFs), Greenspring created Target Date (k)larity® to assist defined contribution plan fiduciaries and committees engage in a prudent process to choose the most appropriate TDF strategy for their participants and to help fulfill their fiduciary duties.
“In the past, the selection of TDFs has typically been tied to the choice of plan provider with little thought given to whether the solution was right for the plan and participants. But with TDF assets projected to capture nearly 90% of 401(k) contributions by 2019 and more than 30 different product alternatives, we believe the fiduciary burden for retirement plan committees to prudently select and monitor TDFs has never been higher,” says Joshua P. Itzoe, CFP®, AIF®, Partner & Managing Director of Greenspring’s Institutional Client Group. “With enhanced scrutiny by regulators, the evolving needs of participants, and the proliferation and complexity of product alternatives in the marketplace, Target Date (k)larity® provides an excellent framework to help plan fiduciaries fulfill their duties by guiding them through a prudent and demonstrable decision-making process.”
Target Date (k)larity® is a comprehensive three-phase, seven-step target date evaluation process that aligns closely with Department of Labor guidance from 2013. Phase one begins by identifying the goals and needs of the plan and assessing participant demographics such as age, salary, tenure, as well as participation and deferral rates. In phase two, Greenspring uses the information gathered in the first phase and then conducts extensive product due diligence on multiple TDF options by analyzing areas such as asset class exposure, glide path construction, performance, risk vs. return and fees. Finally, in phase three Greenspring makes a TDF recommendation and documents the entire process with a written executive summary and 25+ page recommendation report.
You can learn more about Target Date (k)larity® at www.greenspringwealth.com/tdk.
