Let's review a little of the past history of 401(k) lawsuits. (Photo: iStock)
How much responsibility do you have for those you associate with? Will you be held accountable for the mistakes they make?
If it's your job to hire them or direct them, then the answers to both these questions are "yes!" Just ask any pro sports coach, manager, or team executive. If you can't get your players to perform, you can probably get away with lopping off a few of their heads. But, beyond a certain point, it's your head on the platter.
The same holds true for business, especially the investment adviser business. If you've got discretion, what happens to the underlying companies in your portfolio can count against you. And what happens if those underlying companies go on the record saying they no longer place shareholder interests as their primary duty (see "Did Business Roundtable Just Break a Fiduciary Oath?" FiduciaryNews.com, August 29, 2019)?
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Christopher Carosa
Chris Carosa has been writing a weekly article and monthly column for BenefitsPRO online and BenefitsPRO Magazine since 2011 and is a nationally recognized award-winning writer, researcher and speaker. He’s written seven books, including From Cradle to Retire: The Child IRA; Hey! What’s My Number? – How to Increase the Odds You Will Retire in Comfort; A Pizza The Action: Everything I Ever Learned About Business I Learned By Working in a Pizza Stand at the Erie County Fair; and the widely acclaimed 401(k) Fiduciary Solutions. Carosa is also Chief Contributing Editor of the authoritative trade journal FiduciaryNews.com and publisher of the Mendon-Honeoye Falls-Lima Sentinel, a weekly community newspaper he founded in 1989. Currently serving as President of the National Society of Newspaper Columnists and with more than 1,000 articles published in various publications, he appears regularly in the national media. A “parallel” entrepreneur, he actively runs a handful of businesses, including a small boutique investment adviser, providing hands-on experience for his writing. A trained astrophysicist, he also holds an MBA and has been designated a Certified Trust and Financial Advisor. Share your thoughts and story ideas with him through Facebook (https://www.facebook.com/christophercarosa/)and Twitter (https://twitter.com/ChrisCarosa).
