Christopher Carosa, CTFA posted an update in the group Investments 8 years, 3 months ago
Are Target Date Funds a violation of one’s fiduciary duty? If you think about the origins of fiduciary duty (namely, how it evolved via trust law), we see a mandate requiring fiduciaries to only takes actions that are in the best interests of the individual beneficiaries. This year’s Tamar Frankel Prize Winner David Swensen has penned two books…[Read more]
Christopher Carosa, CTFA posted an update in the group Investments 8 years, 3 months ago
How do we stop the BHB myth that claims asset allocation accounts for 93% of investment performance? – Itâs been a while since major financial service providers have misquoted the infamous Brinson-Hood-Beebower research papers from the late 1980s/early 1990s. We still, however, see individual practitioners and even the some journalists repeating t…[Read more]
Christopher Carosa, CTFA posted an update in the group Investments 8 years, 3 months ago
After decades of relying on ârisk toleranceâ questionnaires, how do you convince 401k plan sponsors and investors that theyâre more dangerous than useful? What horror stories can you share? – As the attached link explains, since as early as 1999, itâs been widely known ârisk toleranceâ questionnaires are, at best, irrelevant and, at worst, misl…[Read more]
Christopher Carosa, CTFA posted an update in the group Investments 8 years, 3 months ago
Are investors who fail to learn from history doomed to repeat it? – We hear millennials prefer to buy annuities than to save in a 401k or IRA and invest directly (and at a lesser cost) in the stock market. Well, this is bad news and good news. The bad news is that those that donât learn from history are condemned to repeat it. How many baby b…[Read more]
Christopher Carosa, CTFA posted an update in the group Fees 8 years, 3 months ago
Why a Fee Disclosure? – Itâs just not working. In fact, does it have any meaning at all, other than to confuse plan participants? Itâs one thing to place the burden of discerning the value of fees on the plan sponsor for, after all, that is their fiduciary duty. But why bring the plan participant in it? Itâs not like they can do anything about…[Read more]
Christopher Carosa, CTFA posted an update in the group Fees 8 years, 3 months ago
When it comes to retirement plans, what is more important than fees? – As David Huntley, co-editor of the 401k Averages Book explains in the attached article, fees are the be-all and end-all when it comes to value. The DOL apparently shares this opinion. In your mind, whatâs more important than fees?
[bpfb_link u…[Read more]Christopher Carosa, CTFA posted an update in the group Fees 8 years, 3 months ago
Whatâs the best way to improve 401k participant fee disclosure? – While it may be correct that it does more harm than good, itâs not going away. Our only hope is to make it better.How do you see that happening? Is there something more important than fees to disclose to 401k plan participants?
[bpfb_link url…[Read more]Christopher Carosa, CTFA posted an update in the group Compliance 8 years, 3 months ago
Whatâs the biggest impediment to saving for retirement? – You may be surprised to see what AARPâs David Certner has to say in the attached article. Before you read it, though, tell us what you think it is.
[bpfb_link url…[Read more]Christopher Carosa, CTFA posted an update in the group Compliance 8 years, 3 months ago
Has the DOL sufficiently defined âbest interestsâ under its new proposal? – Or are we going to have to wait for the courts to decide? The DOL is saying let the courts decide. Is that really in the best interests of, well, anyone?
[bpfb_link url…[Read more]Christopher Carosa, CTFA posted an update in the group Compliance 8 years, 3 months ago
Universal âFiduciaryâ Standard – For almost two years now, I have been expressing my frustration about the âFiduciaryâ standard because I knew that the lobbying effort during the rules making process leading up to the proposed regulation would be intense and would be ruled by those with the most to lose. I could not believe that people on our sid…[Read more]
Christopher Carosa, CTFA posted an update in the group Communication 8 years, 3 months ago
From a tax standpoint, Are people better or worse off investing in a 401k plan? – Lately, thereâs been much discussion surrounding the tax benefits of 401k plans. Many say, with tax rates so low, thereâs no reason to invest in a 401k or any other tax deferred savings plan. Tell us what you think below. In either case, you might be surprised by the…[Read more]
Christopher Carosa, CTFA posted an update in the group Communication 8 years, 3 months ago
Winners help plan sponsors solve problems, but which ones? If you want someone to do you a favor, you must first do them a favor. Thatâs one of the big lessons taught by Professor Don Corleone. (And when that doesnât work, thereâs always âthatâ offer.) Trouble is, sometimes people ask for one thing and want another. Other times they ask for somet…[Read more]
Christopher Carosa, CTFA posted an update in the group Communication 8 years, 3 months ago
How Often Should Plan Sponsors Meet with Service Providers? – Monthly, quarterly, semi-annually, or annually? A plan and its investment option menu is like an aircraft carrier â it takes a long time to turn it. Unless something dramatic happens, meeting more than once a year may lead to short-term reactive decision making, which may not be in t…[Read more]
Christopher Carosa, CTFA posted an update in the group Member News 8 years, 4 months ago
Welcome to Member News! This is the only group available to basic members. You’ll want to visit this group often to discover new benefits or critical “How-To” Answers. In fact, if you’ve got a question about the site, please ask it here. I’m sure you’re not the only one with the question and sharing it here will allow others to benefit from…[Read more]
Christopher Carosa, CTFA joined the group For Plan Sponsors 8 years, 4 months ago
Christopher Carosa, CTFA joined the group Compliance 8 years, 4 months ago
Christopher Carosa, CTFA joined the group Fees 8 years, 4 months ago
Christopher Carosa, CTFA joined the group Investments 8 years, 4 months ago
Christopher Carosa, CTFA joined the group Communication 8 years, 4 months ago
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