Mutual fund shareholders canât have their cake and eat it, too. Indeed, a myth busting professor bluntly states âmandatory fee reductions are likely to injure fund shareholders.â
Tag "Fees"
Hereâs an issue that can perplex even the most experienced ERISA/401k fiduciary: Whatâs the difference between a broker and a Registered Investment Adviser? More importantly, does the difference significantly raise the fiduciary liability for the typical fiduciary?
We donât need more regulation to prevent future Madoffs, we just need common sense (and, perhaps, a tad bit more enforcement of existing regulations). Here are five straightforward rules fiduciaries can follow to avoid their own personal investment Waterloo.
The Arizona Republic, reporting on the Profit Sharing/401k Council of America conference in Scottsdale last week, wrote âmany experts see rising use of annuities as the next innovationâ in 401k plans. Who were these âexperts?â Annuity salesmen?
Conducting a periodic plan diagnostic test is often seen as an easy way for the typical 401k fiduciary to reduce fiduciary liability. An ERISA plan trustee or fiduciary will usually hire an independent fiduciary consultant to conduct a comprehensive plan fiduciary diagnostic test. Here are five critical areas to consider.
The Supreme Court will raise the visibility of the fee structure within the investments of nearly half of all 401k plan assets. Just because the powers that be say itâs so, doesnât necessary mean your average fiduciary can rely on the decree. Indeed, the Supreme Court of the United States appears poised rule in favor of mutual fund shareholders, yet, at the same time, mislead both 401k investors and fiduciaries.
A mutual fundâs expense ratio represents only one factor in analyzing the appropriateness of a mutual fund as an investment. Other factors may in fact be more important (including, among other things, portfolio manager tenure, number of holdings, total net assets, investment objective and consistency of returns).
Understanding fiduciary responsibilities is important for the security of a retirement plan and compliance with the law. Here are 10 tips excerpted from the United States Department of Labor booklet “Meeting Your Fiduciary Responsibilities” that may be a helpful starting point.
An employee places much trust in an Employee Retirement Income Security Act (ERISA) fiduciary. Because they have the responsibility to act on behalf of retirement plan beneficiaries, plan fiduciaries are held to certain standards of conduct by the United States Department of Labor.
