Nevin's Data "Points"

In the course of my day, I talk to (and email with) people, read a lot, and every so often jot down a random thought or insight that gives me pause and makes me think. See what you think. It’s not what you’re doing wrong; it’s what you’re not doing that’s wrong. The best way to stay out of court is to avoid situations where participants lose money. The key to successful retirement savings is not how you invest, but how much you save. Does anybody still expect their taxes to be lower in retirement? If you don’t know how much you’re paying, you can’t know if it’s reasonable. Everybody wants a pension, but nobody seems to want an annuity. Everybody’s “committed to the business”…until they aren’t. Retirement income is a challenge to solve, not a product to build. “Stay the course” is only good advice if you were on a good course to begin with. Does anybody but lawyers actually read those legal “disclosures?” (that’s a rhetorical question.) When selecting plan investm...

A recent Alliance Bernstein survey found that plan sponsors’ awareness of their fiduciary role, much less the responsibility, has deteriorated significantly in recent years. In fact, their survey found that less than half of plan sponsors knew they were fiduciaries. Here are, in my estimation, the three biggest mistakes fiduciaries make. Not knowing they are fiduciaries. As noted above, a significant – and apparently growing – number of individuals who are, in fact, plan fiduciaries are oblivious to that reality. The reasons for that are varied, though the Alliance Bernstein survey  suggests that knowledge gap is wider among those who serve on a plan committee than with those who have primary responsibility for the plan. Of course, fiduciary status is based on one’s responsibilities with the plan, not a title. Simply stated, if you have discretion in administering and managing the plan, or if you control the plan’s assets (such as choosing the investment options...