Last week, I asked NewsDash readers which, if any, of the tips they incorporate in their processes, and what they think about the guidance in general.
The responses were:
- Establish a process for comparing and selecting TDFs – 23.1%;
- Establish a process for the periodic review of selected TDFs – 46.2%;
- Understand the fund’s investments—the allocation in different asset classes (stocks, bonds, cash), individual investments and how these will change over time – 46.2%;
- Review the fund’s fees and investment expenses – 61.5%;
- Inquire about whether a custom or nonproprietary target-date fund would be a better fit for the plan – 15.4%;
- Develop effective employee communications – 46.2%;
- Use a variety of available information and resources to learn about and evaluate funds – 46.2%;
- All of them – 23.1%;
- None – 15.4%; and
- We don’t offer TDFs and haven’t considered offering them – 15.4%.
Responding readers were not very verbal in this survey, but Editor’s Choice goes to the reader who said: “There was nothing new in the DOL tips that a prudent plan would not have already been doing.”
Other than the tripwire regarding non-proprietary and custom TDFs, there was nothing new here. And that's probably a good thing.
Whew, it says tips. I cringe when I hear "we're the gov't and we're here to help you."
We were already there. There was nothing new in the DOL tips that a prudent plan would not have already been doing
NOTE: Responses reflect the opinions of individual readers and not the stance of Asset International or its affiliates.