Latest news with #401
Time of India
11-07-2025
- Business
- Time of India
401(k) panic in America: Investors flee to safety amid tariff chaos — biggest shift in 5 years
What's going on with 401(k) flows right now? 40 out of 61 trading days in Q2 saw net movement out of equities into fixed income. Roughly 42% of inflows went directly into bond funds. Stable value funds alone absorbed a massive 40% of March's total trading inflows, driven by their principal protection features. Why did 401(k) investors move away from stocks in Q2? Live Events What made Q2 trading activity the highest in 5 years? 'These moves towards fixed income investments reflect a desire among investors to reduce volatility in their retirement accounts. While some reacted to market swings, others took a more measured approach, rebalancing their portfolios to meet target allocations, especially since equities outperformed fixed income in the second quarter.' When did investor behavior start to shift again? Is this panic, or a smart tactical shift? 'These moves toward fixed income reflect a desire to reduce volatility,' said Rob Austin, head of thought leadership at Alight. 'Some investors reacted emotionally to the swings, but others took a calculated approach to rebalance after equities outperformed earlier in the year.' How do Alight's findings compare to Fidelity's 401(k) data? 'It was really encouraging to see that despite a lot of things going on, and economic ups and downs, people continued to save and didn't pull back, or make a lot of changes to their asset allocation.' What retirement savers should take away from this shift Staying the course still works Advisors continue to recommend long-term investing. The majority of gains often come after big drops — and trying to time the market can be more damaging than riding it out. Tactical shifts are okay — if you're close to retirement If you're nearing retirement, shifting some assets to stable value or cash-like investments can help protect against locking in losses. Opportunistic buying isn't reckless While some ran for safety, others saw the pullback as a chance to buy quality tech and growth stocks at a discount. Why it's the biggest shift in five years What does this mean for long-term retirement planning? Should 401(k) investors worry about short-term volatility? FAQs: (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel 401(k) investors saw no reason to sit still during the market swings in the second quarter. According to Alight Solutions' 401(k) Index, retirement account trading spiked to its highest level in five years as investors actively moved their money away from stocks and into safer options like bonds. Out of 61 trading days in the quarter, investors shifted money out of equities on 40 days, showing a strong desire for stability amid tariff worries and market March 2025, trading in 401(k) plans spiked to levels not seen since the COVID crash in October 2020. The movement was stark: investors pulled significant funds from equities — especially target-date funds, large-cap U.S. stock funds, and mid-cap equities — and poured them into conservative options like bonds, money market funds, and stable value second quarter of 2025 brought choppy markets, largely driven by uncertainty around tariffs and broader economic signals. Many 401(k) investors didn't feel comfortable riding the wave. Instead, they chose to protect their retirement savings by reallocating to Alight Solutions, a striking 42% of inflows went into fixed income funds. A large chunk of these movements came out of target-date funds, which are typically designed to adjust risk over time and meant to be left untouched. Yet, even these were heavily traded — a sign that investors were feeling savers also moved funds out of company stock and mid-sized U.S. equity funds, diverting those dollars into bond funds, stable value funds, and to a lesser extent, money market was an unusually high level of daily movement within 401(k) accounts in the second quarter. Out of the 61 trading days, activity tilted toward fixed income on 40 of those days. This marks the highest quarterly trading activity in five years, reflecting a significant shift in investor Austin, head of thought leadership at Alight Solutions, explained the mindset:Interestingly, the tide began to shift again in June, when trading volumes dropped compared to April and May. Investor confidence seemed to be stabilizing slightly by then. New contributions to equities also inched up from 70% to 70.4%, showing a slow return of equity categories, international equities saw the highest net inflows, indicating some investors were looking for growth outside the U.S. despite earlier institutional investors have dumped over $1 trillion in equities this year, retail and 401(k) investors have surprisingly held steady — investing around $50 billion per month on average. And according to Vanguard, a whopping 97% of their 401(k) participants didn't trade at all in the data from Alight Solutions shows that a large segment of investors did actively rebalance, pulling money from riskier holdings in favor of more stable income-producing trends from Alight Solutions contrast sharply with what Fidelity Investments reported for the first quarter. Fidelity saw more stable investor behavior, even amid economic Shamrell, Vice President of Workplace Thought Leadership at Fidelity, said:But that optimism didn't carry over into Q2 — at least not for all 401(k) holders. While some continued to save steadily, a large group of investors felt compelled to take action as markets quarter's trading marks the most dramatic reallocation of 401(k) assets since 2020, highlighting a clear shift in investor sentiment. While it's not full-blown panic, the data shows a strong trend toward capital preservation and risk aversion — the biggest tilt of its kind in half a even with all the churn, the core story remains stable: most Americans are still saving consistently, staying invested, and trusting the long-term power of the high volume of trades into fixed income could reflect a growing sensitivity to risk among retirement investors, especially those nearing retirement age. But experts often warn against making emotional or short-term decisions based on market Q2's volatility triggered active trading, it's worth noting that equities still outperformed fixed income during the quarter, according to Alight. This suggests that those who stuck with their stock-heavy portfolios may have actually come out ahead — reinforcing the idea that long-term discipline usually beats short-term swings are a natural part of investing, but data from Q2 shows many people still react emotionally to headlines and short-term noise. The lesson here may not be to avoid moving your money entirely — rather, it's about making measured, goal-driven adjustments and staying focused on your long-term financial you're looking to rebalance or just trying to better understand what your 401(k) is doing, staying informed and checking in on your investment strategy regularly is always a smart move.A: Many 401(k) investors shifted to bonds to avoid market risk during recent volatility.A: The 401(k) Index showed the highest trading activity in 5 years, with a focus on conservative assets.
CTV News
23-06-2025
- Automotive
- CTV News
Two rollovers, including a transport truck, block eastbound 401 Expressway
Video Traffic is heavily delayed on the eastbound 401 after two rollovers involving a transport truck. Drivers are advised to expect significant delays.
Yahoo
13-06-2025
- Business
- Yahoo
Sanford Heisler Sharp Mcknight Wins Final Approval of Record-Breaking $69 Million Settlement on Behalf of More Than 350,000 Retirement Plan Beneficiaries
MINNEAPOLIS, June 13, 2025 (GLOBE NEWSWIRE) -- Sanford Heisler Sharp McKnight, LLP, a national civil rights law firm, was granted final approval of a record-breaking $69 million settlement on behalf of more than 350,000 beneficiaries of the UnitedHealth Group 401(k) Savings Plan. The Honorable Judge John R. Tunheim of the U.S. District Court for the District of Minnesota ruled from the bench during a Fairness Hearing held today, approving the settlement amount and granting counsel's requested attorneys' fees and a service award of $50,000 for sole class representative Kim Snyder. Judge Tunheim informed the parties that a more detailed order would follow his ruling. Plaintiff Kim Snyder first filed this case in April 2021, alleging that UnitedHealth Group had breached its fiduciary duties to participants in its 401(k) Savings Plan and mismanaged participants' retirement funds in violation of the Employee Retirement Income Security Act of 1974 ('ERISA'). Specifically, the complaint alleged that UnitedHealth Group failed to remove from its employee retirement plan a family of target retirement date funds managed by Wells Fargo that have underperformed their investment benchmarks and other similar target date funds significantly for over a decade. Sanford Heisler Sharp McKnight was appointed Class Counsel in February 2022. After more than four years of litigation, Sanford Heisler Sharp McKnight reached an impressive $69 million settlement on behalf of Plan participants – the largest-ever single-plan ERISA settlement alleging breach of fiduciary duty for failure to remove underperforming investment options. The record previously belonged to In re G.E. ERISA Litig., Case No. 1:17-CV-12123-IT (D. Mass. Mar. 8, 2024), another case brought by Sanford Heisler Sharp McKnight that resulted in a $61 million settlement for the Plan. 'The firm is honored to have worked for the benefit of the Class for more than four years and to have recovered this settlement for Plan participants,' said David Sanford, chairman of Sanford Heisler Sharp McKnight and counsel for Plaintiff and the Class. 'We will continue to bring cases like this on behalf of individuals planning for retirement.' 'ERISA's fiduciary standards are strict and exacting,' added Charles Field, a partner and Co-Chair of Sanford Heisler Sharp McKnight's Financial Mismanagement and ERISA Litigation Practice Group and counsel for Plaintiff and the Class. 'Today's decision underscores the fact that fiduciaries should be held to the highest standards in managing Plan participants' assets.' 'I am grateful for the role I was able to play in obtaining this result today,' said Leigh Anne St. Charles, a partner and Co-Chair of Sanford Heisler Sharp McKnight's Financial Mismanagement and ERISA Litigation Practice Group and counsel for Plaintiff and the Class, who spoke in support of the settlement at today's Fairness Hearing. 'Even more so, I am grateful for Kim Snyder being brave enough to step forward and represent the Plan and the Class for the last four years. People like her make it possible to right these wrongs.' The case is Kim Snyder v. UnitedHealth Group, et al., Case No. 0:21-CV-01049 (JRT/DJF), United States District Court for the District of Minnesota. Local Counsel is Susan M. Coler of Halunen Law. About Sanford Heisler Sharp McKnight, LLP Sanford Heisler Sharp McKnight, LLP is a national public interest class-action litigation law firm with offices in New York, Washington, D.C., San Francisco, Palo Alto, San Diego, and Nashville. Sanford Heisler Sharp McKnight focuses on employment discrimination, Title IX, wage and hour, whistleblower, criminal/sexual violence, and financial services matters. The firm has recovered over $1 billion for its clients through many verdicts and settlements. The National Law Journal recognized Sanford Heisler Sharp McKnight as 2021 Employment Rights Firm of the Year, 2021 Human Rights Firm of the Year, and 2022 Civil Rights Firm of the Year. For the latest news about Sanford Heisler Sharp McKnight, visit the firm's newsroom or follow the firm on Facebook, LinkedIn, or Twitter. If you have potential legal claims and are seeking counsel, please call 619-577-4253 or email Attorneys at Sanford Heisler Sharp McKnight would like to have the opportunity to help you. If you experienced sexual abuse and are seeking counsel, please call 202-221-3152 or email cdunn@ Attorneys at Sanford Heisler Sharp McKnight would like to have the opportunity to help you. For more information, contact Jamie Moss, newsPRos, at 201-788-0142 or Jamie@ in to access your portfolio
Hamilton Spectator
01-06-2025
- Politics
- Hamilton Spectator
‘Crazy idea': Ontario councillors push back as strong mayor powers reach small towns
TORONTO - A month after Ontario's government extended strong mayor powers to a swath of new municipalities, some leaders are promising never to use the measures — but a chorus of small-town councillors warn that local democracy is under threat. As of May 1, another 169 mayors in the province can now veto bylaws, pass new ones with just one-third of council in favour and hire or fire municipal department heads unilaterally. Municipal Affairs and Housing Minister Rob Flack said last month that the province decided to more than triple the number of mayors who can access the powers in an effort to build housing faster and streamline local governance. The measures were first introduced in 2022 and initially only applied to the mayors of Toronto and Ottawa, Ontario's two most populous cities. Several municipalities are taking active steps to reject the powers now that they have been granted more widely. Mark Hunter, one of 10 city councillors in Stratford, recently got unanimous support for his motion to reject the new powers. Hunter said it was symbolic and designed to show that municipal democracy shouldn't be 'subject to provincial whim.' 'What it effectively does is get rid of majority rule in our council,' he said. 'It's the expectation of the residents in our community that their representatives are able to fully represent them and this change puts some level of diminishment on that.' Hunter said his fellow councillors can have strong disagreements at council, but lively discussions result in better decisions for the community. Anything that diminishes that discussion is worse for residents, he said. Councillors aren't concerned about Stratford's current mayor abusing his power, said Hunter, but they are worried about what could happen in the future. 'It's another example of concentrating power in fewer hands. Unfortunately in human history, that doesn't always work out so well,' he said. David O'Neil, a councillor in Quinte West, said he is also concerned about strong mayor powers, adding they represent 'a real misdirection' by the province. 'I think this decision is on par with the crazy idea of building a tunnel under the 401,' O'Neil said, referring to Premier Doug Ford's promise to add a tunnel under the major Ontario highway. He added he is skeptical that strong mayor powers would lead to new housing being built in his community, and thinks the province should waive development fees if it wants to see more housing built. Zack Card, another councillor for Quinte West, said he believes the expansion of the strong mayor powers will 'erode the democratic traditions of municipal councils in Ontario.' 'I believe effective councils work collaboratively and with an understanding that all voices carry equal weight. Tipping that balance could potentially hinder governance and make solving issues within our communities more difficult,' Card wrote in an email. Neither O'Neil nor Card would speak to the recent dismissal of the municipality's chief administration officer, which was described on the municipality's website as a 'mayoral decision' pursuant to the legislation, made on the first day the powers were available. Quinte West Mayor Jim Harrison said in an email to The Canadian Press that 'the decision was made in close collaboration and consensus with council, utilizing strong mayor powers to move forward.' Less than a week after the decision, he told a council meeting that he wasn't planning to make use of the strong mayor powers. O'Neil suggested his concern is more future-oriented: it's unclear what could a different sort of mayor do with these powers five, 10 or 20 years down the road. David Arbuckle, executive director of the Association of Municipal Managers, Clerks and Treasurers of Ontario, said unilateral power threatens a local government's administrative authority and staffers' ability to give non-partisan, evidence-based advice. 'It's changed the dynamic where (a city staffer) now has to be mindful of the fact that they could be hired or fired by the mayor at any point in time,' Arbuckle said in a recent interview. 'The advice they're bringing forward may not be as neutral as possible because ultimately they are now responding to one individual.' Corey Engelsdorfer, a councillor from Prince Edward County, said he's worried the powers will exacerbate existing divisions on his council and, should they be used, could 'sideline' constituents even as the community experiences a boom in development. The traditional model of majority rule is already divisive, Engelsdorfer said — especially when it comes to housing decisions — so decisions being made with even less support could lead to even more public cynicism. 'The way we build homes is by working together as a council and not by one person or a third of council pushing through what they want to push through,' he said. 'I always hear Premier Ford say that these changes cut red tape, but democracy to me is not red tape. I don't think it's something that needs to be in place at all.' Mayor Steve Ferguson said in an interview that he was working to defer several of the strong mayor powers, including personnel decisions, back to council. The council also unanimously passed a resolution asking the province to rescind strong mayor legislation, Engelsdorfer said. Despite the concerns, Matti Siemiatycki, director of the University of Toronto's Infrastructure Institute and a professor of geography and planning, said the uptake of the powers has been 'fairly underwhelming.' Before last month, there were only 46 so-called strong mayors in Ontario. Only a few made use of their powers. High-profile examples include Hamilton Mayor Andrea Horwath advancing affordable housing development on two municipal parking lots in April 2024, and Mississauga's former mayor Bonnie Crombie passing bylaws to build fourplexes in October 2023. But Siemiatycki said he fears there's greater risk for strong mayor powers to go unchecked in smaller municipalities, where there is less oversight and, often, less journalistic scrutiny. 'We've seen an erosion and a decline of the local presses across Canada, and it's no more visible than in small communities,' he said. 'If you're concentrating powers, what's really needed is external oversight bodies. And the media is one of those, so smaller communities might struggle to have that accountability and people being aware of what's happening.' Siemiatycki said while he sympathizes with the province's desire to tackle a housing and infrastructure crisis, he agrees with the councillors who have raised concerns. 'It doesn't necessarily mean you'll go further just because you're aiming to go faster,' he said. 'The thing that's more sustainable over the long term is acceleration through processes that have very clear accountabilities and timelines to them.' This report by The Canadian Press was first published June 1, 2025.
Winnipeg Free Press
01-06-2025
- Politics
- Winnipeg Free Press
‘Crazy idea': Ontario councillors push back as strong mayor powers reach small towns
TORONTO – A month after Ontario's government extended strong mayor powers to a swath of new municipalities, some leaders are promising never to use the measures — but a chorus of small-town councillors warn that local democracy is under threat. As of May 1, another 169 mayors in the province can now veto bylaws, pass new ones with just one-third of council in favour and hire or fire municipal department heads unilaterally. Municipal Affairs and Housing Minister Rob Flack said last month that the province decided to more than triple the number of mayors who can access the powers in an effort to build housing faster and streamline local governance. The measures were first introduced in 2022 and initially only applied to the mayors of Toronto and Ottawa, Ontario's two most populous cities. Several municipalities are taking active steps to reject the powers now that they have been granted more widely. Mark Hunter, one of 10 city councillors in Stratford, recently got unanimous support for his motion to reject the new powers. Hunter said it was symbolic and designed to show that municipal democracy shouldn't be 'subject to provincial whim.' 'What it effectively does is get rid of majority rule in our council,' he said. 'It's the expectation of the residents in our community that their representatives are able to fully represent them and this change puts some level of diminishment on that.' Hunter said his fellow councillors can have strong disagreements at council, but lively discussions result in better decisions for the community. Anything that diminishes that discussion is worse for residents, he said. Councillors aren't concerned about Stratford's current mayor abusing his power, said Hunter, but they are worried about what could happen in the future. 'It's another example of concentrating power in fewer hands. Unfortunately in human history, that doesn't always work out so well,' he said. David O'Neil, a councillor in Quinte West, said he is also concerned about strong mayor powers, adding they represent 'a real misdirection' by the province. 'I think this decision is on par with the crazy idea of building a tunnel under the 401,' O'Neil said, referring to Premier Doug Ford's promise to add a tunnel under the major Ontario highway. He added he is skeptical that strong mayor powers would lead to new housing being built in his community, and thinks the province should waive development fees if it wants to see more housing built. Zack Card, another councillor for Quinte West, said he believes the expansion of the strong mayor powers will 'erode the democratic traditions of municipal councils in Ontario.' 'I believe effective councils work collaboratively and with an understanding that all voices carry equal weight. Tipping that balance could potentially hinder governance and make solving issues within our communities more difficult,' Card wrote in an email. Neither O'Neil nor Card would speak to the recent dismissal of the municipality's chief administration officer, which was described on the municipality's website as a 'mayoral decision' pursuant to the legislation, made on the first day the powers were available. Quinte West Mayor Jim Harrison said in an email to The Canadian Press that 'the decision was made in close collaboration and consensus with council, utilizing strong mayor powers to move forward.' Less than a week after the decision, he told a council meeting that he wasn't planning to make use of the strong mayor powers. O'Neil suggested his concern is more future-oriented: it's unclear what could a different sort of mayor do with these powers five, 10 or 20 years down the road. David Arbuckle, executive director of the Association of Municipal Managers, Clerks and Treasurers of Ontario, said unilateral power threatens a local government's administrative authority and staffers' ability to give non-partisan, evidence-based advice. 'It's changed the dynamic where (a city staffer) now has to be mindful of the fact that they could be hired or fired by the mayor at any point in time,' Arbuckle said in a recent interview. 'The advice they're bringing forward may not be as neutral as possible because ultimately they are now responding to one individual.' Corey Engelsdorfer, a councillor from Prince Edward County, said he's worried the powers will exacerbate existing divisions on his council and, should they be used, could 'sideline' constituents even as the community experiences a boom in development. The traditional model of majority rule is already divisive, Engelsdorfer said — especially when it comes to housing decisions — so decisions being made with even less support could lead to even more public cynicism. 'The way we build homes is by working together as a council and not by one person or a third of council pushing through what they want to push through,' he said. 'I always hear Premier Ford say that these changes cut red tape, but democracy to me is not red tape. I don't think it's something that needs to be in place at all.' Mayor Steve Ferguson said in an interview that he was working to defer several of the strong mayor powers, including personnel decisions, back to council. The council also unanimously passed a resolution asking the province to rescind strong mayor legislation, Engelsdorfer said. Despite the concerns, Matti Siemiatycki, director of the University of Toronto's Infrastructure Institute and a professor of geography and planning, said the uptake of the powers has been 'fairly underwhelming.' Before last month, there were only 46 so-called strong mayors in Ontario. Only a few made use of their powers. High-profile examples include Hamilton Mayor Andrea Horwath advancing affordable housing development on two municipal parking lots in April 2024, and Mississauga's former mayor Bonnie Crombie passing bylaws to build fourplexes in October 2023. But Siemiatycki said he fears there's greater risk for strong mayor powers to go unchecked in smaller municipalities, where there is less oversight and, often, less journalistic scrutiny. 'We've seen an erosion and a decline of the local presses across Canada, and it's no more visible than in small communities,' he said. Monday Mornings The latest local business news and a lookahead to the coming week. 'If you're concentrating powers, what's really needed is external oversight bodies. And the media is one of those, so smaller communities might struggle to have that accountability and people being aware of what's happening.' Siemiatycki said while he sympathizes with the province's desire to tackle a housing and infrastructure crisis, he agrees with the councillors who have raised concerns. 'It doesn't necessarily mean you'll go further just because you're aiming to go faster,' he said. 'The thing that's more sustainable over the long term is acceleration through processes that have very clear accountabilities and timelines to them.' This report by The Canadian Press was first published June 1, 2025.
