Tag Archives: plansponsors

An Inconvenient Truth: Cost-Inefficiency and Closet Indexing in 401(k) Plans

“Facts do not cease to exist because they are ignored” – Aldous Huxley The Sixth Circuit Court of Appeals’ recent decision in the CommonSpirit Health (CommonSpirit)1 401(k) action has brought renewed attention to several key 401(k) compliance and fiduciary liability … Continue reading

Posted in 401k, 401k compliance, 401k investments, 403b, Active Management Value Ratio, AMVR, best interest, closet index funds, compliance, consumer protection, cost consciousness, cost efficient, cost-efficiency, ERISA, ERISA litigation, fiduciary compliance, fiduciary duty, fiduciary law, fiduciary liability, fiduciary liability, Fiduciary prudence, fiduciary prudence, fiduciary responsibility, investments, Mutual funds, pension plans, plan sponsors, prudence, Reg BI, retirement plans, risk management, wealth management, wealth preservation | Tagged , , , , , , , , , , , , , , | 2 Comments

“Meaningful Choices”: Cost-Efficiency, the CommonSpirit Health decision, and the Future of 401(k) Litigation

Recently, the Sixth Circuit handed down its decision in the Smith v. CommonSpirit Health (“CommonSpirit) 401(k) action.1 My immediate reaction was “hello again SCOTUS,” as once again we have inconsistent and irreconcilable rulings between two circuits involving ERISA litigation The … Continue reading

Posted in 401k, 401k compliance, 401k investments, 403b, Active Management Value Ratio, AMVR, best interest, closet index funds, cost consciousness, cost efficient, cost-efficiency, ERISA, ERISA litigation, fiduciary compliance, fiduciary duty, fiduciary law, fiduciary liability, fiduciary liability, Fiduciary prudence, fiduciary prudence, fiduciary responsibility, fiduciary standard, investment advisers, investments, Mutual funds, pension plans, plan sponsors, prudence, Reg BI, wealth management, wealth preservation | Tagged , , , , , , , , , , , , , , | 1 Comment

At What Cost?: Annuities, Cryptocurrency, and Fiduciary Law

A [fiduciary] is held to something stricter than the morals of the market place.  Not honesty alone, but the punctilio of an honor the most sensitive, is the standard of behavior….1 Fiduciary law is a combination of three types of … Continue reading

Posted in 401k, 401k compliance, 401k investments, 403b, Active Management Value Ratio, AMVR, Annuities, consumer protection, cost consciousness, cost efficient, cost-efficiency, Cost_Efficiency, ERISA litigation, evidence based investing, fiduciary compliance, fiduciary duty, fiduciary law, fiduciary liability, fiduciary liability, Fiduciary prudence, fiduciary prudence, fiduciary responsibility, fiduciary standard, investment advisers, pension plans, prudence, retirement plans, risk management, securities compliance, wealth management, wealth preservation | Tagged , , , , , , , , , , , , | 2 Comments

Heuristics, Cognitive Biases and 401(k)/403(b) Fiduciary Decision-Making

The number of 401(k)/403(b) cases continues to grow. And it will continue to do so unless and until plan sponsors take the time to truly understand their legal responsibilities and adjust their plans accordingly.  I am on record as saying … Continue reading

Posted in 401k, 401k compliance, 401k investments, 403b, Active Management Value Ratio, ERISA, ERISA litigation, fiduciary compliance, fiduciary duty, fiduciary law, fiduciary liability, fiduciary liability, Fiduciary prudence, fiduciary prudence, fiduciary responsibility, fiduciary standard, investments, retirement plans, wealth management, wealth preservation | Tagged , , , , , , , , , , , , , , , | Leave a comment

Costs, Correlations and Prudent Fiduciary Investing

The financial adviser tells you that a fund has a five-year compound return of 20 percent. The fund’s advertisement tells you that the fund has a five-year compound return of 20 percent. Morningstar tells you that the fund has a … Continue reading

Posted in 401k, 401k compliance, 401k investments, 403b, fiduciary compliance | Tagged , , , , , , , , , , | Leave a comment

“The Active Management Value Ratio 4.0: What Investors and Investment Fiduciaries REALLY Need to Know About Wealth Accumulation and Preservation”

The new video is available on the InvestSense YouTube channel.

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