This dilemma isnât new. Trust officers have had to face it for generations. Itâs called a âsplit-interestâ trust. Multiply this split interest problem by the number of beneficiaries in a typical retirement plan and you can see how this conflict grows more complex.
Basic Members
While this might ruffle the feathers of ESG activists, those responsible for the day-to-day work of picking stocks have the real-world experience to fully understand where Buffett is coming from.
The Biden Rule, like the Trump Rule, does not encourage or discourage the use of ESG criteria when selecting investments. This allows fiduciaries to either adopt ESG principles or ignore them.
Retirement plan sponsors may also benefit from teaching entrepreneurial skills to their employees. Such lessons could also provide employees with opportunities to begin to practice what they learned directly for their current employer.
From an employer perspective, itâs not just about the 401k plan. There are greater realities that must be dealt with. Different firms, however, will find distinctâand differingârealities.
A major retirement industry thought leader collects his gold watch. Here’s his inside story. And he’s sticking to it.
Itâs critical that plan sponsors consult with compliance professionals before adding the Deemed IRA feature.
By far, thereâs almost universal agreement that 401k fiduciaries should be less concerned about investment performance than you might have seen a generation ago. Why is this so?
Not only do you need to watch the place that holds all the money, you need to watch the pipeline that feeds the money there.
If a fiduciary feels carrying out legal duties entails a high cost, there is an acceptable strategy for dealing with this, but the fiduciary must execute it before the client signs the contract.
