For all the rose-colored eyes that have a created a legend flawless certitude concerning memories of a time that never existed, pension plans simply canât measure up to 401k plans.
Tag "Jason Grantz"
Plan sponsors need to think about it in these terms: Does it make sense to have a pork-belly ETF on a 401k investment menu? How about orange futures?
Of course, to really answer the question of post-retirement middle class stability, we have to understand what âmiddle classâ means. Luckily, there are folks who collect data, which helps with this definition.
The challenge is plan sponsors often canât determine if an account is forgotten until some triggering event. And by that time, itâs too late.
There is an out, of course, but that might eliminate the so-called âinstitutional pricingâ advantage former employees have for staying in the plan in the first place.
There might be a there, there. It could be that TDFs have an Achillesâ Heel that leaves them vulnerable.
Nobodyâs perfect. Itâs unfair to expect recordkeepers to be. Everyone makes mistakesâeven recordkeepers. The problem is what happens when a mistake occurs.
How do you solve, for example, the problem of integration between the payroll software and the 401k recordkeeperâs website?
The DOL’s new Rule both discourages and permits continued conflicts-of-interest.
The Irony Of Taxing 401k Plans To Save Social Security
Worse, if the âalternativesâ alluded to by the paper entail government backed programs like Social Security, this could have a debilitating impact on encouraging people to be responsible for funding their own retirement.