Search the News Archive

Most and Least Expensive States for Health Care, Ranked

"Health care costs averaged over $10,000 per person in 2020, but the exact amount varied by state. [Forbes] compared all 50 states and the District of Columbia across 11 key metrics using data from the Kaiser Family Foundation ... South Dakota topped the list of states with the most expensive health care, while Michigan is the cheapest."

If the SEC Is Telling You to Ask Your Financial Advisor These Questions, You Probably Should

"While advisers don’t have to give you these questions until June 30, 2020, you should start asking them now. This article gives you those questions and adds my thoughts about the answers."

Plan Sponsors to 401(k) Advisors: What Have You Done for Me Lately?

"The lack of thorough service by plan advisors of 401(k)s is not sitting well with plan sponsors.... [In] an annual Plan Sponsor Attitudes survey, 38% of sponsors are looking to switch advisors, up from 30% in 2016 and 9% in 2013. Advisor complacency, coupled with a need for more knowledgeable advisors, is prompting the switch."

Key Investor Lessons from the New DOL Fiduciary Rule

"Under the new rule, the definition of ERISA level fiduciary 'investment advice' is broadened significantly. This change means that more types of advice, including one-time advice which was previously exempt, now require advisors to meet fiduciary standards.... The updated rule removed the requirement that the advice must be on a 'regular basis.' "

IBM 401(k) Participants Need Their Own 'Shadow' Fiduciary to Guard Retirement Benefits

"The existing legal framework is, and has for decades been, failing participants in retirement plans of all stripes ([DB], as well as [DC]) ... [The author's] advice to IBM's 401(k) participants is that they establish their own 'shadow' 401(k) fiduciary, or retirement benefits guardian, whose role will be to vocally represent their interests solely.... The goal is to prevent an employer-retirement plan sponsor with infinite resources, assisted by expert advisors, and limited incentive to tell the truth, from using arcane devices to pursue its own objectives whilst workers are kept in the dark."

Best Practices When Adding Cryptocurrency to Your 401(k) Investment Line-Up

"Plan participants, for example, should get access to high-quality, personalized educational content and tools to make sure they understand the asset, the risks associated with it and the role it can play in a properly diversified portfolio. Plan advisors should then monitor allocations and alert employees when their crypto allocation exceeds prudent thresholds."

Restricted Stock, Restricted Stock Units, Restricted Securities: Understanding the Differences and Why They Matter

"[Restricted Stock Units (RSUs)] are now the most frequently granted equity awards in public companies. However, companies, employees, and financial advisors often call RSUs 'restricted stock' or 'restricted securities.' ... [T]hose three things are not the same. As a lawsuit by current and former Uber employees shows, it's important to know what type of stock grant you have and its tax treatment."

Best Buy's 401(k) Meltdown

"As hard as times are for investors in Best Buy's shares, far grimmer is the plight of the 110,000 employees participating in the company's approximately $1 billion 401(k) plan. Not only do they have to worry about possibly losing their jobs if the company can't right itself, their so-called retirement plan is heavily invested (17%) in company stock. Assuming the company stock in the plan has lost half its value this year, employee retirement assets have likely taken a near 9% hit.... To add insult to injury, Best Buy's 401(k) participants have been paying over a million a year to financial advisors involved in the design and administration of an optimal retirement plan for them[.]"