Leave it to Charlie Epstein to take issue when his 401(k) industry is attacked. The object of his ire this week is none other than English-expat funnyman John Oliver.
Oliver turned his well-honed comedic scorn to the 401(k) industry recently which, while amusing, was rife with misinformation—or so says Epstein.
The author, owner of Epstein Financial Services and self-proclaimed “America’s 401(k) Coach” good-naturedly rips the quality of England’s economy and English beer before moving on to more serious topics. It’s well worth a watch.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
Epstein gets this so wrong.
I don’t want the JUNK (expensive products) in the non-fiduciary part of his “toolbox.”
Applying the fiduciary standard all of the time ensures that plan sponsors (employers who run businesses, and who are not experts in investments) received trusted advice from an expert – not a salesperson.
Fiduciary status, once assumed, extends (under common law) to the entirety of the relationship. The fiduciary hat, once assumed, is never easily removed. The “two hats” doctrine (now I am a fiduciary, now I am not) is just wrong.
In John Oliver’s production company’s plan, the “financial representative” was registered as an IAR, RR, and insurance agent (i.e., held all three licenses). And this financial representative acted as a non-fiduciary … which led to the problem of a highly expensive plan. Only four options were presented to the production company – all four were expensive!
Consumers need to ask: “Are you a fiduciary – all the time?” Because the fiduciary standard restrains greed. Absent fiduciary status, the “suitability” standard results in excessive fees, costs and unreasonable compensation, in many instances.
Don’t do business with those who seek to escape or deny their status as a fiduciary. A good “coach” would tell both consumers, and advisers, this.
Should politicians not be held to a FIDUCIARY STANDARD with civil and criminal liability similar to ERISA and DOL regulations?