The incredible growth and success of target date funds heralds the notion that most participants in a 401(k) or defined contribution (DC) are better off outsourcing investment selection and management to an experienced professional. Should employers sponsoring a DC plan follow suit?
Leigh Elliot, HR manager at a 220 person Midwest company who attended a TPSU (The Plan Sponsor University – affiliate of 401kTV) held at Notre Dame explains how his company has successfully hired an advisor to take over the selection of investments that are available on their 401(k) plan. Known as a 3(38) fiduciary, the advisor has full discretion compared to a 3(21) fiduciary who simply suggests.
What’s best for you? Watch Leigh’s video and find out.
