Since I published my first list of 15 last fall (one of my most popular, as it turns out), I’ve gotten several very good suggestions — and had an epiphany or two.
Here are a few (more) points to ponder:
- Cheaper isn’t always better, unless it’s the only difference.
- Sometimes you do get what you pay for — but not always.
- If you’re not doing anything “wrong,” you probably aren’t doing anything much.
- You can spend a lot of money in court being right.
- A fund whose allocation is based solely on date of retirement is sure to miss something, but not as much as a fund whose allocation doesn’t take that into account.
- If you don’t know how much you’re paying, you’re likely paying too much.
- Don’t assume that those who aren’t saving via your workplace retirement plan know what they are doing — or what they are missing.
- There’s something about putting decisions down on paper that helps people take them more seriously.
- Figuring out how much to take out is harder than figuring how much to put in.
- The werewolves always outnumber the silver bullets.
- When it comes to workplace retirement plans, there are three kinds of people: those who are ERISA fiduciaries and know it, those who aren’t ERISA fiduciaries and know it, and those who are ERISA fiduciaries and find out via subpoena.
- If you can’t remember the last time you did a request for proposal, it’s probably overdue.
- The default deferral rate for a non-automatic enrollment plan… is zero.
- If you don’t know why “we’ve always done it this way,” it’s time you did.
- You may not know all the right answers, but it’s worth knowing the right questions.