In the rush to get the headline, did the mass media just do a grave disservice to 401k plan sponsors and investors?
401k plan sponsors may discover the Fee Disclosure Rule may be more hazardous than healthy.
Are the purported lower fees of bundling real, or are they a figment of some marketing department’s imagination? Worse, are bundled services really a fiduciary trap?
The ICI comes out with a study that makes it look easy, but what’s the catch?
Both sides of the fiduciary debate suggest their view reduces retirement investor costs. They can’t both be right. Luckily, the marketplace offers a real testing ground, leaving only one question: Who does the DOL protect – the industry or the investor?
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Fee disclosures will become the trending topic among 401k plan sponsors and fiduciaries. It will be tempting to overweight this parameter. But if your plan has an index fund or you’ve ever contemplated using index funds, this book contains one piece of data you absolutely must have.
If the DOL requires the 401k plan fiduciary to ignore a fund’s investment performance, but the SEC still requires funds to disclose that performance, which will 401k investors choose? More importantly, who’s left holding the liability bag?
Should indirect fees matter? Academics may argue, but regulators will have the final say. Unfortunately, different definitions of fees only confound the ERISA fiduciary.