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BMO Retirement Services: Simplified Investment Options Benefit Both Plan Sponsors and Participants

CHICAGO, IL--(Marketwired - Aug 20, 2014) - BMO Retirement Services today released a white paper entitled "BMO Defined Contribution IQ™: Investments." This paper is the third in a nine-part series published by BMO's award-winning retirement plan recordkeeper. Developed for plan sponsors and their consultants, each edition of Defined Contribution IQ (DC IQ™) focuses on a specific way employers can cost-effectively improve their company's 401(k) plans. The three papers are devoted to plan design.

Drawing on findings from the field of Behavioral Finance, the latest white paper in the series examines how plan sponsors can, by constructing a simpler-yet-smarter menu of investment choices, empower their employees to get more from their 401(k) plan.

To implement this, and in turn help participants save more money in their retirement accounts without adding to an employer's expenses, BMO Retirement Services has identified three key criteria:

  • The number and variety of core investment options should be no more than that which is needed to construct a sensibly diversified portfolio
  • The objectives of each option should be clear and well differentiated
  • Core options should be selected based on the needs of the majority of the plan's participant population and not directed at a small or sophisticated segment

"We believe most 401(k) plans should have no more than nine investment options, with a family of target-date funds serving as a single choice," said Todd Perala, series author and Director of Strategic Initiatives, Retirement and Trust Services, BMO Global Asset Management. "By using the criteria outlined in this article, most plan sponsors and their advisors can construct an intelligent menu of investment options that economically encourages greater plan participation, while simultaneously promoting better asset-allocation decisions."

Mr. Perala also highlighted the important role that target-date funds can play. These funds provide plan participants with easy-to-access and easy-to-implement solutions that may help them reach their complex financial goals. He also noted that these professionally managed and automatically rebalanced portfolios may be uniquely qualified to serve as the most enlightened qualified default investment alternative (QDIA).

To read the full white paper, visit:

For more information about BMO Retirement Services, please visit:

About BMO Retirement Services
BMO Retirement Services is an integral part of BMO Global Asset Management and a premiere, award-winning provider of retirement services. We have been recognized as a national provider of both defined contribution recordkeeping and defined contribution investment-only services by the National Association of Plan Advisors.

BMO Global Asset Management provides holistic, solution-driven services to our institutional and high-net-worth clients. With a 40-year legacy of fiduciary service -- and goal of promoting retirement readiness to our more than 500,000 participants in over 1,000 retirement plans -- our clients include retirement plans, Taft-Hartley funds, government and public funds, not-for-profit organizations and family offices. BMO Global Asset Management's commitment to service excellence has led us to be recognized by Pension & Investments as one of the Top 100 largest asset managers.

We are a part of BMO Financial Group (NYSE: BMO), a fully diversified financial services organization with CA$582 billion total assets and more than 45,500 employees as of April 30, 2014.

BMO Retirement Services is a part of BMO Global Asset Management and a division of the BMO Harris Bank N.A., offering products and services through various affiliates of BMO Financial Group.

BMO Global Asset Management is the brand name for various affiliated entities of BMO Financial Group that provide investment management, retirement, and trust and custody services. Certain of the products and services offered under the brand name BMO Global Asset Management are designed specifically for various categories of investors in a number of different countries and regions and may not be available to all investors. Products and services are only offered to such investors in those countries and regions in accordance with applicable laws and regulations. BMO Financial Group (NYSE: BMO), is a service mark of Bank of Montreal (BMO).

All investments involve risk, including the possible loss of principal.

Investment products are: Not FDIC Insured | No Bank Guarantee | May Lose Value

©2014 BMO Financial Corp.

For further information:

Media Contacts:
Alexis Brown
(312) 461-6543