The fundamental shift AI brings to 401k education is its capacity to tailor learning experiences to the unique profile of each individual saver.
Tag "financial literacy"
Advisors do more than plot portfolios. They calm nerves, making them frontline warriors against volatility panic, turning “what if” into “we’ve got this.”
More sophisticated plan participants who can afford to hire their own adviser. They don’t 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 isn’t as easy as some participants would like it to be.
It’s been around for a while, but NetFlix et al have made ‘binge-watching’ a social norm. Is this habit about to trickle down into 401k education and financial literacy in general?
There’s a perverse incentive working here, however. The more aggressive a plan sponsor gets in terms of promoting “financial wellness,” the more likely that plan sponsor will accidentally cross some compliance line.
The problem with Sequence of Return Risk is that there’s no way of knowing if you’ll experience it. It’s a roll of the dice. The best way to avoid this risk is to prepare as if it were going to happen.
Learning to budget isn’t a single lesson. It’s a series of lessons that get more advanced as the student progresses.
Now is the time for 401k plan sponsors to seize their fiduciary mantle and provide the guidance and tools plan participants need to dodge emotional decisions that could ruin their chance for a comfortable retirement.
New regulatory guidelines, Will fee “clarity” lead confusion? and What’s on your menu?
FiduciaryNews.com Trending Topics for ERISA Plan Sponsors: Week Ending 4/12/19
Tangled compliance, a broken fiduciary record, and irrational fees.