Last week I discussed how the trend toward index investments among our clients is accelerating – even for the smallest 401k plans. This week some thoughts on how our clients are using index investments for long term asset allocation strategies.
Smaller 401k plans pay more in fees and have a harder time implementing best practices – right? Not our clients.
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Yale law professor Ian Ayres got hammered last year when he co-authored a paper attacking high cost 401k plans. Professor Ayres and Professor Curtis of UVA are back with a new article on 401k fees and practices. While I don’t agree with every point made in the paper, I do endorse their focus on fees and transparency.
It’s been an interesting year for 401k plans in the news cycle. First, we had PBS’ Frontline piece, The Retirement Gamble, which generated a lot of discussion and debate about fees. Now, we have a professor from Yale Law School who has done some research into 401(k) plan costs.