For that to work, however, itâs not enough to change the titles brokers use â to make them call their sales representatives âsalespeopleâ and call their services âsales recommendationsâ â youâd also have to completely change the way they market themselves so that their marketing messages are consistent with their regulatory status.
Posts From Christopher Carosa, CTFA
It will be important for 401k plan sponsors to get down and dirty when it comes to understanding the fiduciary liability implications of âcleanâ shares and their equivalent. Furthermore, since the most successful class action suits have involved different share classes of the same fund, you can be sure the introduction of âcleanâ shares will catch the eyes of your not-so-friendly neighborhood class action attorney.
Compliance update, fiduciary update, and exactly how clean are those “clean” shares?
This is not to say the 401k is perfect and that thereâs no need to improve it. These improvements, though, would be more like tweaks rather than wholesale changes.
Compliance test, plan sponsor fiduciary awareness, and the similarity between Paul McCartney’s grandfather and the future of mutual funds.
But, as the clichĂ© goes, âWhat about the children?â Arguably, it is minor children who have the best (and easiest) opportunity to shield themselves from a retirement crisis. They have the advantage of time (to maximize the benefits of compound interest).
Pension problems, spaghetti regs, and the never ending battle between stocks and bonds.
The primary reasons for small businesses that you donât offer 401k plans are cost, complexity, and liability exposure. The traditional 401k plan has a lot of baggage rolled to those areas. It’s complicated. It’s definitely not easy. For local business of 10 to 15 employees that have so many different things they have to deal with, they just aren’t in position to want to have to deal with the baggage with the 401k plan.
Benna expertly explains why small businesses face nearly insurmountable obstacles when it comes to establishing a 401k, Americaâs preferred retirement savings vehicle. He then shows how to re-frame existing retirement plan vehicles in a way that small business owners and employees will find more appealing.
FiduciaryNews.com Trending Topics for ERISA Plan Sponsors: Week Ending 10/13/17
The wrong way to save retirement, the truth about “clean” shares, and Investing: It’s all your fault!