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New RIA with familiar faces gets running start at putting advisors into the 401(k) driver's seat

Two financial entrepreneurs have 50 firms on board; the idea is for Pathway Strategic Advisors to take the fiduciary burden off of advisors who handle 401(k) assets for clients

Author Lisa Shidler February 21, 2013 at 5:42 PM
no description available
Scott Hanson: We think this is the biggest thing we’ve done.

401(k) Stories

Elmer Rich III

Elmer Rich III

February 21, 2013 — 7:21 PM

These are smart, successful guys who are master marketers and made themselves a lot of money already.

Just saw some research that low fees is best predictor of mutual fund results – not MStar ratings.

So the advisor gets a 50bp annual fee for basically being a finder and “..will not be recommending funds or providing advice to participants. So, advisors will not be considered a fiduciary as long as they don’t provide advice. We have a solicitor relationship with the introducing advisor,” Gamble says. “We take on the fiduciary responsibility. These advisors do not recommend our funds; what these advisors do is refer participants to Pathway, they’re not making recommendations.”

Be interesting to see the market acceptance of the model. Seems pretty simple. Assume there is no track record for the investment philosophy.

Interesting question is how many self-investors will switch to guided. That’s easy to test.



March 19, 2013 — 7:55 PM

This sounds like being invited into a swimming pool in a lightning storm! Corey Gamble says that a referral from an advisor is not a recommendation? Since when! They are telling me that an advisor if I recommend my client invest in their funds that I am not a Fiduciary? Do your research. That is not the case. Recent actions by the DOL show it! They are raiding 401k’s and eventually the SEC or DOL will sniff this one out. Run!!!

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Mentioned in this article:

Financial Engines
401k Plan Consultant

RIA Publication
Top Executive: Rick Meigs

Allworth Financial
Mergers and Acquisition Firm, RIA Serving Other RIAs, Advisory Firm
Top Executive: Scott Hanson and Pat McClain

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