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Which three of DOL's new 401(k) rules represent the biggest land mines for financial advisors and plan sponsors

Accepting gifts, estimating fees and using asset allocation models all demand treading lightly

Author Lisa Shidler February 14, 2012 at 6:06 AM
no description available
Lou Harvey: It's really going to annoy the hell out of the plan sponsors.

Roland Hofferber

Roland Hofferber

February 24, 2012 — 2:02 AM

My 401k plan is with The Hartford and they have a link to Morningstar’s asset allocation model.
I can no longer access this link for their recommendation and Hartford has not been able to resolve? Is it a possibility that I am shut out because they are now concerned with the possiblity of liability with the new 401k rules?

Brooke Southall

Brooke Southall

February 24, 2012 — 5:05 AM


Interesting question. Let me know if it doesn’t get answered in the next week.


Elmer Rich III

Elmer Rich III

February 27, 2012 — 7:11 PM

We have worked with DC and DB plans and advisors for decades. Suppose we’re some kind of expert on all this.

We take a strong counter view to the handwringing and predictions of doom and gloom for the market and especially for advisors working in it and wanting to enter.

Bottom line — DC and retirement is a great market for advisors. You are sorely needed.

Yes, it is more technical than HNW work — but pretty much every advisor now a days is smart and can learn what they need and partner for what they can’t.

Since the meltdown, there has been endless (electronic) ink wasted on the “end of the world” scenarios regarding advisors and pension business. The “bogeymen” of the IRS and DOL are trotted out like Charlie the bloody mass murderer in endless “slasher” movie remakes. It ain’t true.

The script is the government is evil incarnate and the DOL and IRS are their blood thirsty minions. T’ain’t so.

The DC system, especially is pretty much on auto-pilot, running unexpectedly well, fueled generously by auto payroll deduction. Thank you very much.

If the 401k system was filled with so many “landmines” — the “big boys” wouldn’t still be in the business and so eagerly seeking more. Fidelity would not be a $trillion++ privately held business, etc..

So advisors are best to ignore the scary stories and get to know this great business and market.

Braulio Nieves

Braulio Nieves

March 13, 2012 — 8:25 PM

Any idea of how is ti that the dvisor has to comply with the fees disclosure? I mean like a specific format or something? Also is there any company that may offer a software solution so you can download the breakdown of fees and costs involved every quarter to participants?

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