There's a popular technique many within the 401(k) industry use to benchmark plan fees. It's called "All-In" and it's meant to aggregate all the fees involved in all aspects of the 401(k) service industry.
It sounds like a nice concept and was recently featured in an Investment Company Institute Report (see "Study Shocker: 9 of 10 401(k) Plans Exposed to Increased Conflict-of-Interest Risk," FiduciaryNews, November 29, 2011). Unfortunately, this method of calculating fees contains a fatal flaw that might just hurt 401(k) investors' chances to retire in comfort.
Sit down. This might be a little controversial for some. It flies flat into the face of a certain academic "consensus" (N.B.: all academic progress requires the ability to boldly stare down conventional consensus and blaze new trails). It's a documented standard on at least one regulator's web-site (although that same regulator recently backed down and tried to erase any incriminatory tracks).
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
- Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
- Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
