Archive for ‘May, 2010’

401k Best Route to Transocean Ltd

datePosted on 21:12, May 28th, 2010 by lee

Anyone that lives on or routinely travels to the gulf will appreciate the difference between a fiduciary and someone that is selling stock in a company. Transocean is held to a different standard as a fiduciary. As a fiduciary one is held to the highest standard of care . If you owned a million dollars of trans. stock you would have no recource. If you made 10/hour and had a thousand dollars in your 401k it’s a different story. Does the distinction make sense? Why does the stockholder not have the same recourse as the 401k plan participant? Read the rest of this entry »

“Face Reality” Peter Drucker

datePosted on 21:14, May 19th, 2010 by lee

“A time of turbulence is also one of great opportunity for those who can understand, accept, and exploit the new realities” Peter Drucker

The supreme court changed the reality of the 401 (k) landscape when it ruled that one person could sue the plan sponsor. One distraught employee can file a law suit against a CFO and CEO, and he can most likely find a lawyer to take it on contingency. It’s free, and the liability can be personal.

Strong leaders “face up to reality and resist the temptation of what “everybody knows,” which are about to become the deleterious superstitions of tomorrow.” Peter Drucker

401k Compliance Questionaire-59a, 59b, 59 c

datePosted on 21:39, May 18th, 2010 by lee,,id=223440,00.html

4o1k Compliance questionnaire-It is 46 pages and is only 60 questions if you don’t count the a’s,b’s, and c’s. It is not voluntary. No doubt 99.99% of plan sponsors will not have the resources to complete this with internal resources. How much will this increase the cost of maintaining a 401k plan? Someone has to sit down and gather all of the data and begin the miserable process of answering all of the questions. Either the plan sponsor will have to pay for it or it will be deducted out of the participants accounts, someone has to pay for it.

I would urge you to print the document out and show it to prospective clients. I don’t think anyone would believe the government would put such a burden on employers if they didn’t actually see it. I didn’t.