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 it’s so, doesn’t 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.
Posts From Christopher Carosa, CTFA
The United States Department of Labor (DOL) has issued a booklet entitled “Meeting Your Fiduciary Responsibilities.” The DOL created this publication to help Employee Retirement Income Security Act (ERISA) plan fiduciaries better understand their duties and obligations. Included are four “essential elements” of all retirement plans.
A mutual fund’s 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.
