The key is embedding quantitative prompts inside onboarding experiences so participants perceive personalization while fiduciaries collect the data they actually need.
Tag "risk tolerance"
Risk capacity anchors 401k advice in hard data—income stability, net worth, liquidity, and retirement timeline. Unlike tolerance, which shifts with market moods, capacity reflects what participants can afford to lose, aligning with ERISA’s fiduciary duties.
Here’s where the real disconnect kicks in: participants and pros don’t speak the same language on risk. Participants “feel” it. Meanwhile, advisers whip out rulers like standard deviation or some index, measuring volatility in neat little boxes.
Evolving Retirement Savings vehicles, Beware the Fiduciary Paper Tiger, and The Magician’s (Fee) Secret.
Do 401k plan sponsors know the fiduciary minefield they’re stepping into when they select a QDIA?
When Will Washington Ever Learn? Fees, Glorious Fees! and I Believe in Target Date.
FiduciaryNews.com Trending Topics for ERISA Plan Sponsors: Week Ending 3/29/19
Compliance mixed bag, SEC BI DOA? and “Investments: The Sequel”