Back then, at least, we knew who wore the white hats and who whore the black hats. Today, thanks to muddled and often conflicting regulations for multiple agencies, everyone is wearing fifty shades of gray.
Tag "Marcia Wagner"
So what if a few very high net savers end up with bigger retirement plans? Good for them. The point is to make it easier for more people to save more.
This week is all about those wayward 401k features that are well beyond their expiration date. Careful, though. In the process, you’ll see what’s garbage to one is a work of art to another.
Well, if we’re thinking outside the box, why not go big? It turns out, retirement planning isn’t just about accumulating sources of future funds.
You cannot understate the fiduciary aspect of lower fees. Most 401k plan sponsors, and especially those in smaller plans, don’t have the time or expertise to administer their company’s retirement plan. If they skimp on fees, are they also skimping on the fiduciary protection those professionals are supposed to provide?
There might be a there, there. It could be that TDFs have an Achilles’ Heel that leaves them vulnerable.
The conflicts-of-interest inherent in selecting proprietary funds are apparent. Less so are the criteria used to determine what a suitable process might be.
Thoughtleaders with the veteran experience to sift through the noise and separate the wheat of solid trends from the chaff of tiresome fads. Accurately discerning between the two can mean the difference between long-term sustainability and irretrievably sunk costs.
Unlike a generic vendor agreement, the IPS is a formal plan policy document that defines the parameters between the plan and relevant vendors. This is why it can also be a terrible trap.
Whether a plan sponsor decides to adopt a 401k IPS remains an open question. It’s not a question that should be treated casually. Every plan situation is different. Plan sponsors therefore must conduct a thorough due diligence to determine what’s best for their plan.
