Ary Rosenbaum published an article recently titled “The Complete and Total Worthlessness of the 401k Fiduciary Warranty.” He makes a great case that not only is your “fiduciary warranty” worthless, it is actually dangerous as it lulls Plan Sponsors into a false sense of security.
He reminds you that the fine print matters, and that you don’t always have the protection you were lead to believe. A great example is my FEMA flood insurance. When the river flooded into our yard last year (the 1000 year flood) our pool pump died. Turns out FEMA only covers things inside your house, and regular insurance doesn’t cover things outside the house – so we had to pay.
If you have a 401k plan that you are responsible for I strongly advise you to read this. Click here.