This is not to say the 401k is perfect and that there’s no need to improve it. These improvements, though, would be more like tweaks rather than wholesale changes.
Basic Members
Compliance test, plan sponsor fiduciary awareness, and the similarity between Paul McCartney’s grandfather and the future of mutual funds.
But, as the cliché goes, “What about the children?” Arguably, it is minor children who have the best (and easiest) opportunity to shield themselves from a retirement crisis. They have the advantage of time (to maximize the benefits of compound interest).
Pension problems, spaghetti regs, and the never ending battle between stocks and bonds.
The primary reasons for small businesses that you don’t offer 401k plans are cost, complexity, and liability exposure. The traditional 401k plan has a lot of baggage rolled to those areas. It’s complicated. It’s definitely not easy. For local business of 10 to 15 employees that have so many different things they have to deal with, they just aren’t in position to want to have to deal with the baggage with the 401k plan.
Derisking pensions, Morningstar wants “Clean” fees, and irrational investing.
While Social Security is not going “bankrupt,” it’s clear it will have to change in both a fundamental and disruptive way.
You may have thought Labor Day week was a quiet week… and you may have been right.
Despite those imagined rosy memories, actual history shows, with a few notable exceptions, pensions were never as universal or as lucrative as imagined.
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Compliance update, fiduciary update, and exactly how clean are those “clean” shares?