How 401ks Should Respond to New (and Coming) Market Realities: J.P. Morgan

Long-Term Capital Market Assumptions

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J.P. Morgan Asset Management is out with a new paper that outlines suggested strategies that defined contribution (DC) plans should implement in response to the investment giant’s Long-Term Capital Market Assumptions.

“The rise of defined contribution (DC) plans in the U.S. over the past four decades occurred in an environment of secular disinflation and falling interest rates,” authors Jared Gross and Emily Cao write. “That environment has come to an end. Strategies that worked for DC plans in the past may be less successful in the future. More than ever, the ability to incorporate forward-looking views on markets will be critical to keeping participants on the path to a secure retirement.”

Some of the steps they plan sponsors should consider include:

Target-date funds

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