Will Congress, the SEC and the DOL upgrade the current fiduciary standard to the trust model used by bank trust departments so successfully for more than a century?
Education
At one point within two days of a total meltdown, our financial markets appear to have recovered. Can we now say with certainty what went wrong? Will misguided “solutions” only place our markets are risk once more?
As usual, be careful about elixirs marketed as cure-alls. Personally involved in creating CITs in the early 1990s specifically to market to 401k plans, I’ll share my experiences with you here.
If the evolution of indexing over the decades tells us anything, it tells us today’s budding index products “are not your father’s” index.
One of the biggest liability risks facing the ERISA/401k plan fiduciary derive from the inability to properly disclose and educate plan participants. The primary reason for this gap may be due to lack of specifics from the DOL regarding plan document contents and distribution of key information to participants. The suggestions offered by the ICI should help remedy this gap.
You may be an ERISA/401k fiduciary and not know it. The first step to reducing your personal fiduciary liability it to fully understand under what conditions you may be acting as a fiduciary.
Conducting a periodic plan diagnostic test is often seen as an easy way for the typical 401k fiduciary to reduce fiduciary liability. An ERISA plan trustee or fiduciary will usually hire an independent fiduciary consultant to conduct a comprehensive plan fiduciary diagnostic test. Here are five critical areas to consider.
Don’t ever buy a bond fund thinking you are diversifying into fixed-income assets. A bond fund more closely approximates an income-oriented equity fund than it does a fixed-income asset.
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.
