Michael Doshier - TDF Glidepath Determination & Fit

Be More Than A Fiduciary

Michael Doshier’s role at T. Rowe Price is twofold. First, he shines a light on emerging retirement trends, shifting investor demographics, and the increasing impact of regulation. The research, insights, education, and experience that he and his colleagues analyze and share are all developed with their advisor, consultant, plan sponsor, and participant clients in mind. Secondly, he provides strategic direction to their internal teams focused on the ongoing management of their retirement business.

His national and global experience has provided a rich education in best practices and the value of a client-centric relationship. There is no substitute for putting clients first, and T. Rowe Price has successfully woven this value into the fabric of the organization over the last 85 years. He lives by the values he learned from an early age; be authentic and consistent, serve others, and earn their respect. Integrity is an essential component of a well-lived life, and he believes in the power of coaching and mentoring future generations.

In this episode, Eric and Michael discuss:

• Key factors in determining the optimal glide path for a retirement plan based on employee demographics and behaviors
• Asset allocation as the primary building block of glide paths.
• The nuanced evaluation process for selecting a target date fund
• Documenting and regularly revisiting glide path choices

Key Takeaways:

• The importance of considering participant demographics, including their needs, behaviors, and funded status, when making decisions about glide path adoption.
• Understand that risk is not just investment volatility risk but also the of leaving participants short on their ability to replace their income and consumption in retirement.
• Glide paths in retirement plans typically start with a high allocation to equities, as historical data proves that stocks are the superior choice for long-term asset growth. However, “high equity,” is still relative and must be considered.
• Setting the right expectations and utilizing automatic features can help participants save more effectively.
• When designing glide paths, the primary focus is on the major building blocks of equity, fixed income, and cash, while the specific asset class allocations within those categories are a separate, secondary conversation.
• Both young ERISA advisors and first-time 401(k) committee members, must recognize the importance of education, understanding fiduciary responsibilities, and building strong relationships.

“At a traditional workplace environment where the plan sponsor and or the advisor consultant are the either single fiduciary or shared, that choice really needs to be made only after a fairly robust conversation on all of the data we've talked about here plus the rest of the stuff you would see from the DOL tips document.” - Michael Doshier

Connect with Michael Doshier:

Website: https://www.troweprice.com/

LinkedIn: https://www.linkedin.com/in/michaelgdoshier/

Connect with Eric Dyson:

Website: https://90northllc.com/

Phone: [phone]

Email: [e-mail]

LinkedIn: https://www.linkedin.com/in/401kguy/

The information contained herein is general in nature and is provided solely for educational and informational purposes.

It is not intended to provide a specific recommendation of any type of product or service discussed in this presentation or to provide any warranties, financial advice or legal advice.

The specific facts and circumstance of all qualified plans can vary and the information contained in this podcast may or may not apply to your individual circumstances or to your plan or client plan specific circumstances.