People need to make sure their money lasts a lifetime, he emphasizes. A great concern among employees is that they ll outlive their assets. Field thinks many employees lack confidence in their ability to manage their retirement plan assets. That s not surprising when you consider that a majority of professional money managers underperform their benchmarks. Given the sideways movement of the stock market this year, it s easy to see why employees might want to lock in profits amassed during prior years.
Employees can take up to two loans from their vested defined benefit plan account at any time.
One loan can be taken for any reason, and one can be taken to purchase a primary residence. One possibility is that the new assets will generate more in investment returns for boa than boa ultimately will be obligated to pay out to its employees. If that happens, it will generate pension income that could help boost BOA s earnings this year and in years to come. The way the transfer is structured, Miner says, employees can stipulate how their transferred assets are invested. He adds, Typically, employees will elect to invest their plan assets more conservatively than the plan sponsor.