Target-date Funds Under the Microscope

Robert Powell’s article on Marketwatch is a well written overview of the concern Congress has regarding these funds’ performance and construction, which consequentially were given Congress’s blessing in the ’06 Pension Protection Act. However, it was clearly stated in the PPA that a company’s fiduciaries must do their due diligence in reviewing these funds, just like the other investment options in the plan

Read More

3 Simple Steps on How to Decrease the Risk of Participant Lawsuits

Step #1: Take Advantage of the Available Safe Harbors. Participants need help, and one of the safe harbors specifically helps participants and protects plan fiduciaries alike. The PPA created the role of PPA Fiduciary Adviser, which provides investment advice for a fee. Most providers have not responded because the regulations are simply too onerous. However,…

Read More

Investment Behavior and Traffic – An Analogy

“Investing is like being stuck in traffic: the lane you’re in is moving to slow so you jump over to the one that appears to be going faster, but when you get there that lane slows down to because of all the other people that jumped into it”.

Read More