What would it take to realize the fiduciary liability of overtly using ârisk toleranceâ metrics? And what can 401k plan sponsors do about it?
Tag "investing"
While some may consider this heresy, the best option for a fiduciary managing a portfolio is to include a consistent percentage of assets outside the equity markets and in assets that preserve capital.
Before you scorn the use of badges, remember, the company match is the ultimate badge. If you meet a minimum savings goal, the company awards you a âbadgeâ of a matching contribution.
Because things happened so fast, everyday folks could see in real time how long-term financial systems unfold. In the end, this may have been the greatest lesson of all, and it came courtesy of living in the real-world economic laboratory that was 2020.
This is an all too common problem,… Itâs important right now for 401k plan sponsors to urge their service providers to educate employees about it.
This has long been demanded of fiduciaries. Nearly two centuries ago in Harvard College v. Amory, the Massachusetts court promulgated what has become known as the âprudent man rule.â
Itâs often difficult for those not immersed in the everyday concerns of retirement saving to know what to ask (let alone how to interpret the answers). Itâs up to plan sponsors and the service providers they employ to guide plan participants along the proper route.
Itâs not rocket science, but itâs not easy â either saving in the first place and then investing for the long-term, which means 20-year olds better be as comfortable riding the market as much as they are riding an amusement park roller coaster.
It is critically important that retirement savers make a long-term game plan for their savings and investing strategy.
These Five Developments Dramatically Changed the Retirement Fiduciary World in 2016
In a year that was marked with uncertainty, the biggest development of 2016 might be that it just didn’t matter.