Due Diligence
Yes, Separately Managed 401k Account Pose Risks to Plan Sponsors, But These Steps Can Reduce Their Fiduciary Liability
“As more employees find their 401k accounts growing to more than one million dollars, there will be a greater desire for employees to gain greater control over their own future. Plan sponsors should become more aware of the consequences of providing these kinds of options and how best to mitigate the liability risk associated with them.”
How a Fiduciary Answers the Individual Stocks vs. Mutual Fund Question
If you’re a fiduciary and you haven’t ask this question, you might want to read this before you make your next decision.
Is “Active Share” the New Phrenology?
The controversial and decidedly partisan report not only took aim at the policies of the current administration, it entered into the passive/active debate by solely targeting actively managed funds. Worse, the report reveals a rather naïve understanding of mutual funds and investing.
4 Specific Examples When “Socially Responsible” Investing Does Not Breach One’s Fiduciary Duty
So-called “socially responsible” investing is not automatically incompatible with abiding by one’s fiduciary duty, however, the cases where it is acceptable are narrowly defined.
How a Fiduciary Should Explain “Growth” and “Value” Investing Styles
These are the times it’s most important for fiduciaries to learn how to say “no” to clients who feel compelled to set their own best interests aside just to chase investment performance. No one is saying that’s an easy job.
When is it OK (and not OK) to mix TDFs with other funds?
Investing through mutual funds, including TDFs, is like using mass transportation. It’s not ideal but for many it’s the only realistic choice.
401k Plan Sponsors Need to Know the Good, the Bad, and Why TDFs are So Popular
With the pain of the Target Date Fund 2008/09 market crash debacle still lingering in the mind, to best assess the potential fiduciary liability inherent in TDFs – no matter what safes harbors were promised by the PPA – it’s critical that 401k plan sponsors understand what’s good about them, what’s bad about them, and just why they’re so popular.
Will the DOL’s New Fiduciary Rule Redefine the Role and Boundaries of Plan Recordkeepers?
Ultimately, it will be the tort bar that offers the enforcement and the subsequent consequence for poor decision making on the part of plan sponsors and service providers. Rest assured all sides will be discover the regulatory fence in their once open fields.
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The materials at this web site are maintained for the sole purpose of providing general information about fiduciary law, tax accounting and investments and do not under any circumstances constitute legal, accounting or investment advice. You should not act or refrain from acting based on these materials without first obtaining the advice of an appropriate professional. Please carefully read the terms and conditions for using this site. This website contains links to third-party websites. We are not responsible for, and make no representations or endorsements with respect to, third-party websites, or with respect to any information, products or services that may be provided by or through such websites.