There are two strategic paths to use when it comes reducing liability. One approach occurs after the fact – after the target date funds are already in place. The other approach takes place before the target date funds are even placed on the 401k plan menu. Which is more reliable?
Basic Members
When considering the potential – if not underestimated – liability associated with TDFs, perhaps it’s best to listen to the warning Cialdini provides regarding Social Proof: “It should never be trusted fully… we need to look up and around periodically whenever we are locked into the evidence of the crowd.”
“The ruling by the First Circuit in the Putnam case further increases focus on trust law when determining the scope of fiduciary responsibility under ERISA. Prudent practice already draws on trust law and sometimes prudent practice is ahead of the courts.”
When retirement industry professionals talk about the impact of the 2006 Pension Protection Act, you might be surprised that this is what they conclude.
When it comes to the definitive fiduciary, no one can play that role better than the parent. Parents constantly look out for their children. They want to give their children the best possible advantage to live a better life. Why not give them the ultimate head-start?
The Tax Cuts and Jobs Act preserved the sanctity of the treasured retirement contribution deduction – it even made it more important – but it also did a few things that might surprise some business owners.
“First, we need to recognize we have a problem that affects all Americans and then work to find the basic solutions we can agree on. The longer we wait, the more people will suffer and the more expensive it will be.”
The financial decisions people make can reaffirm their perceived reality. A tweak here and there can change that reality.
Math Anxiety can hurt retirement saving. Reversing the overall condition may be complicated. We can, however, isolate its negative impact on retirement and possibly reduce those effects.
Are you afraid you might freak out if you see the results of a bad quarter reflected in the statement you are about to open? Read this and learn how to train yourself to avoid making rash (and wrong) decisions.
