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.
Tag "Joshua Escalante Troesh"
The One Topic Every 401k Plan Sponsor Must Know Right Now: Fiduciary Education Curriculum (Part III)
The Meat and Potatoes Topics of 401k Plan Sponsor Training: Fiduciary Education Curriculum (Part II)
If we liken the â5 Critical Topicsâ to the skeleton and sinew of a plan sponsorâs fiduciary obligation, the âmeat and potatoesâ topics can be described as its soft underbelly. It is within the routines of these topics that plan sponsors live most dangerously. What are these next two topics and why is it important plan sponsors to dig deep into them rather than simply âread the headlinesâ?
There are two strategic paths to use when it comes reducing liability. One approach occurs after the fact â after the target date funds are already in place. The other approach takes place before the target date funds are even placed on the 401k plan menu. Which is more reliable?
When considering the potential â if not underestimated â liability associated with TDFs, perhaps itâs best to listen to the warning Cialdini provides regarding Social Proof: âIt should never be trusted fully⊠we need to look up and around periodically whenever we are locked into the evidence of the crowd.â
When retirement industry professionals talk about the impact of the 2006 Pension Protection Act, you might be surprised that this is what they conclude.
Why rely on the vagaries of Washington politics when it comes to their future retirement when you can teach them to control their own destiny?
The real prize, though, comes courtesy of following Ben Franklinâs advice. Once you convince them to save and they see the perpetual motion machine known as âcompounding,â your job is done.
