Welcome to the new three-legged stool: Employee, Employer, Government
“Advisers should be very scared of being implicated in the lawsuits that will happen.”
Worse, “all-in” might not be all it’s meant to be, possibly invalidating other results from the same survey. Here’s why.
The race is on between finding an adequate solution for TDFs and one sudden market cataclysm that spurs a slew of fiduciary liability lawsuits.
While one might ask why it took this product 50 years to become popular, a better question might be why had the product failed to spark much interest during those decades.
2009 exposed a much deeper problem with Target Date Funds. Pitched as the be-all-and-end-all to 401k investors, these funds fell flat on their collective face as 2008’s down market exposed them as more sizzle than steak. Washington might help, but a knee-jerk reaction to 2008 is not a good solution at all.