There is an out, of course, but that might eliminate the so-called āinstitutional pricingā advantage former employees have for staying in the plan in the first place.
Tag "fiduciary"
Before you get all excited and look to replace your home equity loan with a 401k loan, you should consider these things.
There might be a there, there. It could be that TDFs have an Achillesā Heel that leaves them vulnerable.
Nobodyās perfect. Itās unfair to expect recordkeepers to be. Everyone makes mistakesāeven recordkeepers. The problem is what happens when a mistake occurs.
How do you solve, for example, the problem of integration between the payroll software and the 401k recordkeeperās website?
“I was [once] a major skeptic of the use of annuities, I have subsequently changed my mind regarding the efficacy of low-cost fixed and variable annuities in both personal and retirement accounts.”
But this rookie mistake doesnāt bypass veteran plan sponsors. If theyāve grown too complacent with their plan, they may wake up one day to find out theyāve got a dinosaur on their hands.
Retirees should think for themselves and what alternatives they have regarding their retirement assets. These arenāt the same as they were when they were working.
As with many things, hands-on instruction is generally the best way to achieve this, especially if you make it into an engaging workshop thatās all about the employee and the employeeās dreams, not about the plan.