More sophisticated plan participants who can afford to hire their own adviser. They donāt ask more from the plan. They ask for less, in hopes of gaining more control over their own destiny. For a variety of reasons, this isnāt as easy as some participants would like it to be.
Tag "adviser"
Itās not just plan sponsors and plan participants that need convincing. The entire retirement plan infrastructure must also get on board. That doesnāt mean the hurdles canāt be overcome.
The One Topic Every 401k Plan Sponsor Must Know Right Now: Fiduciary Education Curriculum (Part III)
Most 401k plan sponsors will readily admit they are not experts when it comes to retirement plans. They understand they have a role in the process. They understand that role carries with it certain fiduciary obligations. They understand (and accept) that role also exposes them to liabilities. This article shows how prudent delegation can mitigate much of that fiduciary liability.
“Pick a laneā¦ please. Why is the SEC living in the land of ambiguity? Lead, follow, or step aside. I may not agree with Ken Fisher very often but on this point, I believe he nailed it…”
āThere is no practical difference between āadviserā and āadvisorā in the eyes of the customer. Both suggest a level of relationship well beyond the standard of a brokerage relationship.ā
For that to work, however, itās not enough to change the titles brokers use ā to make them call their sales representatives āsalespeopleā and call their services āsales recommendationsā ā youād also have to completely change the way they market themselves so that their marketing messages are consistent with their regulatory status.
How can we expect 401k plan sponsors to understand the difference when financial service professionals can’t?
With Congress in recess, the anti-fiduciary lobbyists have moved to major media outlets. Meanwhile, we’re continually discovering government regulation too often produces Rube Goldberg fiascos like target-date funds.
FiduciaryNews Trending Topics for ERISA Plan Sponsors: Week Ending 10/31/14
Political tea leaves, the madness of fees, and the enemy of the investing good.