Long industry veteran tells it like it is. How will his comments change your thoughts on these important subjects?
Tag "401k"
In the end, though, you must remember the PEP is brand new. Not all offerings will offer the same advantages. Some may be designed specifically to forego one advantage to emphasize another.
In the coming ascendency of 401k PEPs, here’s what might surprise you, and here’s what might disappoint you.
Here things get a little familiar for companies with pre-existing stand-alone 401k plans (but may need to be discovered by those without plans).
If plan sponsors assume things can return to the pre-Covid normal, they risk exasperating existing problems. They’re there and cannot be ignored.
The biggest issue when it comes to access is cost. It’s not just the plan sponsor’s sensitivity to higher costs. It’s the service provider’s ability to keep those costs low.
In the end, this all comes down to one final concern, and it’s one that is typically not even considered.
Here’s something you don’t always see, but maybe you should.
This has long been demanded of fiduciaries. Nearly two centuries ago in Harvard College v. Amory, the Massachusetts court promulgated what has become known as the “prudent man rule.”
Before you start to panic, take a deep breath and relax. The retirement savings industry is an aircraft carrier. It can’t turn on a dime.
