Christopher Carosa, CTFA posted an update in the group Investments 9 years 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 that regale the financial industry’s movement towards “cookie-cutter” one-size-fits-all solutions. In this light, is it appropriate for fiduciaries to place beneficiaries into such products like target date funds (which groups all people of the same age together)? Are target risk funds (which can be matched to the specific needs of each individual beneficiary) a more appropriate vehicle?
[bpfb_link url=’http://fiduciarynews.com/2015/09/exclusive-interview-andrew-golden-reveals-the-huge-fiduciary-conflict-of-interest-nobody-talks-about/’ title=’
Exclusive Interview: Andrew Golden Reveals the Huge Fiduciary Conflict-of-Interest Nobody Talks About | FiduciaryNews ‘ image=’http://fiduciarynews.com/wp-content/uploads/2015/09/Andrew_Golden_300.jpg’]Golden tells us how Swensen’s books have explained why a fiduciary cannot use a cookie-cutter approach.[/bpfb_link]
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