As with many things, hands-on instruction is generally the best way to achieve this, especially if you make it into an engaging workshop thatās all about the employee and the employeeās dreams, not about the plan.
Plan Sponsors
Just as these changes come bearing down, so, too, does a need for greater hand holding. Pressures within the provider industry, however, appear to be reducing the number of available hands.
This doesnāt mean you shoot haphazardly for the stars when you can have the moon. After all, youāve got to know your limitations. Seeking unreachable goals will only make your retirement seem hollow and pointless.
Today, more and more plan providers are thinking āinside the box,ā trying to spice up employee meetings by throwing a good dose of entertainment in with the education.
Thereās a perverse incentive working here, however. The more aggressive a plan sponsor gets in terms of promoting āfinancial wellness,ā the more likely that plan sponsor will accidentally cross some compliance line.
āHonest Abeā earned his nickname very early in life. In fact, perhaps the most famous narrative defines the very nature of fiduciary loyalty. And, of course, it deals with the flow of and caretaking of pecuniary assets. In this manner, Lincoln, more than Washington, better represents the modern ERISA fiduciary.
What would it take to realize the fiduciary liability of overtly using ārisk toleranceā metrics? And what can 401k plan sponsors do about it?
Itās not necessarily something that can be done at the flick of a switch, but it can be baked into the process.
If a company sees a substantial number of employees exit their firm, this can have a detrimental impact on all areas. Even the companyās 401k can be negatively affected in a number of ways.