By Dan Solin – “It is difficult to get a man to understand something when his salary depends upon his not understanding it.”
Employers need to appreciate their potential exposure as fiduciaries to plan participants. It’s only a matter of time before an enlightened court reviews the studies and concludes the inclusion of any actively managed fund in a 401(k) plan violates the duty of prudence.
Brokers and insurance companies will never “understand” this evidence. Their salaries depend on their not understanding it.