By far, there’s 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?
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Plan sponsors can benefit from motivated employees, and the 401k plan is a tool to achieve this motivation. What precisely can plan sponsors offer in addition to the usual company match to make their 401k plan more enticing, more attractive, more motivating?
These are fundamental in nature. They are necessary prerequisites for 401k plan sponsors to fully inculcate themselves with more complex topics.
“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.”
Investing through mutual funds, including TDFs, is like using mass transportation. It’s not ideal but for many it’s the only realistic choice.
Ted Benna says ERISA/PBGC – not the 401k – killed pension plans and that pensions no longer make sense given our current job-hopping demographics. He also says a lot more in this must read interview.
Why do we encourage employees to look for blame in their company’s plan when they shoulder the bulk of the responsibility for whether or not they retire in comfort?
If you give 401k investors enough rope, are you responsible if they hang themselves?
FiduciaryNews.com Trending Topics for ERISA Plan Sponsors: Week Ending 12/23/16
Why not State Plans, fiduciary crowd-sourcing, and fee rewind.