401(k) Workshop Oct. 17 – Open for Flyer

We’re very excited to bring a very high quality 401(k) workshop to North County. Click here for the flyer. A 401(k) plan where a plan sponsor hires a registered investment advisor with specialized 401(k) knowledge is completely different than the typical 401(k) with a broker. Registered investment advisors have loyalty only to the plan and the plan sponsor. They do not accept commissions. Brokers have conflicts of interest  (commissions) with the record-keeper and/or mutual fund company. This makes it impossible for brokers to take on any fiduciary liability. It makes it impractical for them to lead efforts for more transparency and lower fees. Their investment knowledge is often misguided. Please RSVP to roadmap@oreillywa.com or call 760-504-6040. See you at Vista Chamber on Tuesday, Oct. 17, 11:30 for lunch & networking and session starts at 12:00 to 1:30...

401(k): From possible to probable, from reasonable to competitive

  For this article to make sense to the reader, two foundational ideas must be accepted. One is that lower fees lead to better returns in the plan. Two is that investment advice leads to more diversification and better returns. Both are well established in the literature. A number of our blog posts address these important foundational ideas. Not convinced? Click here for a summary of how the Lost Decade hurt those whose investments were concentrated in the S&P 500 Index. This example is perfect for 401(k) plan participants because many participants will place most of their money in large cap US funds because they “understand” these well known companies. 401(k) plans got their largest black eye ever during the Lost Decade. Click here for our blog on the Morningstar report document the relationship between fees and performance. I assure you – this is just the beginning of the proof. Please contact us if you wish to receive more information. The status quo says that if your plan has “reasonable” fees and the fund selection inside the plan “make it possible” for an employee in the plan to have their money in a reasonably diversified portfolio – then you’re meeting basic requirements.. 401(k) plans are based on giving employees freedom to spread their money around the funds as they wish – even if they do it in such a way as to torpedo their returns. Though that seems wrong to us – it is the current situation. We want to make it likely that our beloved employees/co-workers precious retirement assets grow as well as possible – directly impacting the...