Contributor: Robert Richter
Imagine a 401(k) plan that does not allow participants to direct the investment of their accounts, a plan where trustees make investment decisions on behalf of the plan as a whole. Some might consider that blasphemy. Participants want – no, they have a right – to direct the investment of their retirement accounts.
As radical as it sounds, it was not that long ago when participant investment direction was rare. Technology has been the single biggest factor in enabling plans to permit participant directed investments. Throw in a threat of fiduciary liability, some marketing, and we have a train that cannot be stopped. I am not suggesting that this train needs to be stopped. I do, however, think it is time to step back and take a look at where this train is headed. ... read more
sales consultant, SunGard’s wealth management business
Contributor: Natalie Wyatt
Children learn color theory in school, where they combine primary colors to achieve a secondary color, and then create tertiary colors from those results. Similarly, the traditionally distinct 403(b) and 401(k) industries now are spreading over into each other’s color spectrums.... read more
partner, SunGard’s Wealth Management Global Services
Contributor: Tim Scott
“If I could give you a choice between 1000 gallons of coffee on the day you retire or a guarantee of receiving 3 cups of coffee each day for the rest of your life after you retire, which option would you choose?” The question struck me as somewhat odd for several reasons, not to mention the fact that I am not a coffee drinker! However, the real point of the question gets to the heart of the recent interest in retirement income products in the defined contribution plan market. If you give me 1000 gallons of coffee (or my personally preferred drink of iced tea), how would I know that 1000 gallons would be enough to last for the rest of my life? How would I take care of that much coffee and keep it fresh? How much could I drink each day and not run out? What if I currently average drinking more than 3 cups per day? Will I be able to adjust to a lower standard of coffee drinking?
... read more