401(k) Social Media Posts November 2017

Dear Readers, Enjoy all of our social media postings in one place for those of you not following us on LinkedIn, Facebook or Twitter. Useful to all especially 401(k) plan sponsors. Not a plan sponsor? Share with your favorite 401(k) account holder or plan sponsor. 11/6/2017 (retweet) Evaluating a fund? Never mind its star rating; go straight to the total expense ratio, says @John_Stepek ow.ly/qIUS30gnhh8 11/7/2017 #401k #fiduciary #EvidenceBased investing small 401(k) plan high fees NOT necessary & get higher quality too ow.ly/u1gs30gn2dZ 11/8/2017 Plan Sponsors: excellent recorded webinar #401k “#fiduciary& fees” by ERISA attorney at partner’s site #SHRM credit http://ow.ly/SYJk50f2aZX 11/14/2017 #Cybersecurity & #401(k) Plans: team up with advisor/providers, create & document procedures, demonstrate prudent #fiduciaryprocess. no surprise there. ow.ly/ebHb30gvRy8 11/15/2017 #SHRM #HR #401(k) Research: employers have green light to push the envelope on default savings rates…. https://goo.gl/mCESYX 11/16/2017: #SHRM #HR #401(k) #plansponsor one tax proposal streamlines some DB and DC rules http://ow.ly/LbBp30gvSJU 11/20/2017:#millenials doing OK, two-thirds saving for 401k #retirement #SHRM #HR ow.ly/C6Sv30gGoHm fb.me/BFlJVaIU 11/28/2017 #SHRM #HR #Fiduciary Most Common #401kFund Lineup Mistakes ow.ly/R5oK30gyPJJ 11/29/2017 #401k account holders want more #investingfee info #hiddenfees #Fiduciary #SHRM #HR#PlanSponsor #retirement ow.ly/yFSh30gG0fw 11/30/2017 #401k #planponsors must address & educate for #retirement #RMD req min distributions. ow.ly/qz3130gG2qY 12/5/2017 Senate passes tax reform bill that impacts #HRbenefits. But which ones? A #SHRM article explores the just-passed bill’s impact on benefits. #401k #retirementplan #403b#Fiduciary ow.ly/OHDf30h0TiM Other dates: A new paradigm for small 401(k). It’s NOT a foregone conclusion that small 401(k) plans must be overburdened with fees – in fact – they can even have competitive fees and improved in quality at the same time.https://goo.gl/fqC9Dr Is Voya your 401(k) record-keeper? – see article on law suit https://goo.gl/EJxcr8 or any insurance/brokerage company? – see us and we’ll show you exactly what you are paying for each 401(k) plan element. We’ll give you our opinion on the fund lineup. The story of attorney of Jerry Schlichter fighting 401k abuse by insurance...

Most Common 401(k) Fund Lineup Mistakes

The most obvious mistake – this is not your field of expertise! The mistake: Not hiring a registered investment advisor fiduciary (RIA), that is a retirement plan specialist, that takes full responsibility for selecting the funds including avoiding all the mistakes I am about to list. Sometimes Brokers (registered reps) and RIAs can make these mistakes – we seem them on plans we’re analyzing regularly. When the funds are selected by the RIA with discretion, it’s described under ERISA section 3(38). Delegating to an expert is a very smart fiduciary move! Not providing the lowest cost share class possible. Related: When the lower cost share class is not able to be accessed, not documenting why. Providing individual funds that are high volatility. They should be provided only inside of a “do it for me” option that is overseen by an RIA. Not providing enough passive low cost funds to construct a diversified portfolio. Too many funds. You want diversification. If a participant allocates across funds that overlap, they achieve concentration, the opposite of diversification. Much of the angst in 2000-2009, the “Lost Decade”, was due to investors placing their assets in overlapping large US cap funds which follow the S&P500 which was down over the ten year period of the “Lost Decade”. Removing actively managed funds from the lineup based solely on recent poor performance or adding actively managed funds to the lineup based solely on recent excellent performance. This points out the fundamental problem that active funds pose for plan fiduciaries. Their selection is very difficult to justify. Quite often when an active manager performs poorly relative to others, their performance turns...