August this year will mark the 5th anniversary of the Lehman bankruptcy which ushered in the full force of the global financial crisis. Although the transmission mechanism was the sub-prime tainted, investment grade CMOs and much of the ills were manifested through...
Plan Sponsors
Quarterly Market Commentary – Q2 2013
August this year will mark the 5th anniversary of the Lehman bankruptcy which ushered in the full force of the global financial crisis. Although the transmission mechanism was the sub-prime tainted, investment grade CMOs and much of the ills were manifested through...
2014 Health Savings Account Plan Limits
On May 3, 2013, the Internal Revenue Service issued Revenue Procedure 2013-251 announcing the 2014 inflation-adjusted amounts for Health Savings Accounts (HSAs), as determined under the Internal Revenue Code § 223. The following is a comparison of the 2013 and 2014...
Quarterly Market Commentary – Q1 2013
The US Market - non plus The first quarter of 2013 has been nothing less than spectacular for the US stock market with the S&P 500 and the Dow Jones Industrial making new highs. The ongoing stock market rally is a continuation of a "risk-on" push since the final...
Quarterly Market Commentary – Q4 2012
The most important non-event in 2012 was the end of the 5,125-year cycle in the Mayan calendar on December 21 which should have ushered in the fiery end of the world. After surviving that scare, we had to endure the much less ominous yet no less out-of-control event...
Fiscal Cliff–What is it?
The Fiscal Cliff is the culmination of expiring (Bush-era) tax cuts and subsidies and initiation of spending cuts (“Sequestration”) and new taxes beginning in 2013. Sequestration is an automatic budget cut, sanctioned under the 2011 Budget Control Act, that applies...
Quarterly Market Commentary – Q3 2012
In our second quarter report, we highlighted a number of major macro risks that added significant downside risk to the economy and financial markets. At the top of the list was the European sovereign debt crisis. At that time, 2012 was shaping like a repeat of 2011...
2013 Annual Qualified Retirement Plan Limitations
2013 Annual Qualified Retirement Plan Limitations On October 18, 2012, the Internal Revenue Service published (IR-2012-77) cost of living adjustments affecting dollar limitations for pension plans and other retirement related items for Tax Year 2012. Generally...
Quarterly Market Commentary – Q2 2012
Here is Chao & Company’s market commentary for the 2nd quarter of 2012.
SEC Comment Letter on Proposed TDF Disclosure
On June 16, 2010, the SEC requested comment on the proposed required disclosure of a target date fund’s target date (or current) asset allocation and Chao & Company provided its public comment.
403(b) Plans Must Comply with ERISA Section 408(b)(2)
Certain covered service providers are required to furnish specified information to plan administrators so that they may comply with their disclosure obligations. The DOL issued a Field Assistance Bulletin affirming the application of this regulation to IRS section 403(b) plans that are ERISA-covered plans.
Bull or Bull’s Eye – A Brief Review of Quantitative Tools for Analyzing TDFs
Target Date Funds (“TDFs”) are fast becoming the dominant investment choice for account-based DC plans in the US. The purpose of this paper is to review the quantitative analytical tools and factors that should be considered as parts of a prudent process for plan sponsors and their advisors in selecting and monitoring TDFs.
2013 Health Savings Account Plan Limits
On April 27, 2012, the IRS announced the 2013 inflation-adjusted amounts for Health Savings Accounts (HSAs) as determined under the Internal Revenue Code § 223.
Quarterly Market Commentary – Q1 2012
Here is Chao & Company’s market commentary for the 1st quarter of 2012.
Smith-Goldman: A Poignant Case Study on the Fiduciary Debate
Philip Chao, Principal and Founder of Chao & Company, recently authored an AdvisorOne article regarding Goldman Sachs and the fiduciary standard. For your convenience, the article is reproduced below, or you can find it online by clicking the following link:...
Quarterly Market Commentary – Q4 2011
Here is Chao & Company’s market commentary for the 4th quarter of 2011.
InvestmentNews: One case shouldn’t stand in the way of an ERISA fiduciary standard
Philip Chao recently published an article for InvestmentNews on the DOL Investigation of Matthew D. Hutcheson and its implications for the fidicuary standard. Here is that article.
PPACA Sets First Time Health FSA Limit: $2,500 per year for Employee Contribution
Effective for plan year beginning on or after January 1, 2013, an employee must limit salary reduction to no more than $2,500 in contributions to medical care flexible spending arrangements.
The ERISA Fiduciary Standard Is Not Marginalized
Retirement plan investment advisors should work to apply the highest fiduciary standard, regardless of how a particular lawsuit or other events in the media play out.
Quarterly Market Commentary – Q3 2011
Here is Chao & Company’s market commentary for the 3rd quarter of 2011.