The advisor community has been watching the progress of the Improving Access to Retirement Savings Act—otherwise known as SECURE Act 2.0. As of this writing, there are two different bills, one in the House and one in the Senate. The House version is out of committee and enjoying bipartisan approval; It's not quite as far along in the Senate, but stands a good chance of approval and making it onto the President's desk. One thing is clear: Republicans and Democrats agree that Americans are not on track for retirement.

With SECURE 2.0 looking like it will become law, 401(k)s and other retirement plans may finally have a chance to recover some lost ground from traditional pensions having given way to defined contribution plans. Here I'd like to discuss the new act, and in particular how it's opening the way to rethink retirement investment time horizons and reduce the need for members of underfunded plans to undertake bigger risks as they get closer to their retirement date. It also plays into my firm's mission of rethinking the traditional 60/40 portfolio mix and protecting the American worker from downside risk.