Becker Business Podcast Episode Summary

Title: Retirement Plan Trends, Market Timing and the Role of Alternative Assets
Guest(s): Danny Resnick (J.P. Morgan Wealth Management, Chicago), Abe Porto (J.P. Morgan, Head of Defined Contribution Consulting, US)
Host: Scott Becker
Date: January 20, 2026

Overview

This episode focuses on the evolving landscape of employer-sponsored retirement plans. Scott Becker is joined by Danny Resnick and Abe Porto from J.P. Morgan to discuss current trends for plan participants and sponsors, the increasing role of alternative assets in retirement plans, best practices for fund and record keeper selection, and the crucial issue of market timing vs. long-term investing.

Key Discussion Points & Insights

1. Introductions & Structure

• [01:37] Danny Resnick introduces the Resnick Group, a four-person Chicago-based wealth management team managing $1.3 billion, with a focus on employer-sponsored retirement plans.
• [02:10] Abe Porto shares his 25 years of experience in retirement plan consulting, emphasizing ERISA fiduciary services for institutional clients.

2. Trends & Issues for Retirement Plan Participants

Market Performance and “Timing the Market”

• [03:06] Recent years saw strong equity market returns, making some participants question if a pullback is coming.
• Danny Resnick:
  “Are markets overdue for a meaningful pullback? And I think the answer is a definitive maybe ... timing pullbacks is a very difficult sport to play and that's because investors need to be right twice.” [03:30]
• Historical J.P. Morgan research: Investing at all-time highs has not disadvantaged long-term investors when compared with investing at lower points, across multiple timeframes since 1970 ([03:48]).
• “For long-term investors, time in the market is better than timing the market.” — Danny Resnick [04:16]

Asset Allocation, Drift & Rebalancing

• Due to market strength, many portfolios’ equity portions may now exceed targets.
  • DIY investors should consider rebalancing if allocations have drifted.
  • Those in target date funds get automatic professional rebalancing.
• Target Date Funds Explained:
  “Globally diversified multi-asset funds whose risk level declines on a glide path as plan participants approach their projected retirement date.” — Danny Resnick [05:41]
• Rebalancing Strategies:
  • Either do it all at once or incrementally (“in a couple different tranches over a month or two”), depending on preference and drift magnitude ([06:18]).

3. Alternative Assets in Retirement Plans

• [07:20] Abe discusses alternative investments (private equity, hedge funds, real estate) gradually entering the 401(k) space.
• “We do expect the industry to dip its toe in slowly. Broader adoption likely starts with a small allocation inside those target date funds...” — Abe Porto [07:28]
• Discussion about “evergreen fund structures” being more suitable for 401(k) menus than “drawdown funds” thanks to immediate deployment of capital and enhanced liquidity ([08:05]).

4. Key Issues for Plan Sponsors

A. Fund Selection and Fiduciary Responsibility

• [09:38] The responsibility of fund selection falls on the plan fiduciary (could be business owner for small plans, or an investment committee for larger ones).
• “We employ an experienced group of subject matter experts ... and we meticulously assess both passive and active strategies ... with a combination of qualitative and quantitative diligence.” — Abe Porto [10:20]
• Considerations incorporate both historical performance (quantitative) and other qualitative factors before recommendations ([10:50]).

B. Record Keeper Evaluation

• Similar review process as fund selection:
  • Scrutiny of operational infrastructure, business practices, service levels, and pricing ([10:56]).
• “Benchmarking by itself, whether it’s the fund evaluation or the record keeper evaluation, it’s critical ... and plan fiduciaries should be doing [it] every couple of years to mitigate risk.” — Abe Porto [11:36]

C. Fiduciary Balance & Change Management

• [12:16] Danny notes fiduciaries “could have a fine fiduciary line to walk,” especially as market and participant pressure to include alternative assets increases.
• They recommend a “crawl, walk, run” approach to changes:
  • Incremental adoption and regular review for both new asset types and service providers.
  • “We think it’s good fiduciary hygiene to take what we call a crawl, walk, run approach ... and that crawl, walk, run approach has definitely been resonating with our clients.” — Danny Resnick [13:27]

Notable Quotes & Memorable Moments

• Market Timing Wisdom
  “If you’re trying to time the market, you’ve gotta be right twice – when you buy and when you sell.” — Scott Becker [05:54]

• Alternatives in Retirement
  “Broader adoption likely starts with a small allocation inside those target date funds that Danny was just talking about.” — Abe Porto [07:28]

• Plan Sponsor Caution
  “Fiduciaries are often wearing multiple hats ... and because they’re wearing multiple hats, we think it’s good fiduciary hygiene to take ... a crawl, walk, run approach to making changes...” — Danny Resnick [13:17]

Timestamps for Important Segments

• 01:37 — Danny Resnick introduction & firm overview
• 02:10 — Abe Porto background & business focus
• 03:06 — Market timing, equity allocation, participant trends
• 05:41 — Target date funds explained
• 06:18 — Rebalancing: all at once vs. incrementally
• 07:20 — Alternatives in retirement plans: current outlook
• 09:38 — Plan sponsor responsibilities; fund selection
• 10:56 — Record keeper evaluation & importance of benchmarking
• 12:16 — Fiduciary challenges, crawl-walk-run approach to change

Takeaways

• Long-term time in the market outperforms attempts to time the market.
• Rebalancing is increasingly important after multi-year market rallies, with a shift toward professional options like target date funds.
• Alternatives (private equity, real estate, etc.) are gaining attention in retirement plans but will likely see a slow, cautious rollout.
• Plan sponsors bear significant fiduciary responsibility and should regularly benchmark both fund choices and service providers, embracing incremental change.
• The ‘crawl, walk, run’ mindset is a prudent way to test and implement new retirement plan features, particularly alternative investment options.

For listeners and readers, this episode provides timely insights and practical guidance on navigating today’s rapidly evolving retirement plan environment — with candid perspectives from industry experts on timing, diversification, and prudent fiduciary stewardship.