With global concerns about the COVID-19 pandemic and millions of employees now required to work from home, how will fiduciary governance be impacted? As the stock market peaks and troughs, investors are panicking as they watch their retirement dollars ping pong up and down. It is a tense time for all. However, in this chaos and transition, should other priorities take precedent over the retirement plan committee’s fiduciary responsibility?
Plan Sponsor Response to Chaos
According to Malcolm Gladwell in the book “What the Dog Saw,” he explains that when a crisis happens, people generally respond in one of two ways. They either choke up or panic. When a person chokes up, they overthink a situation. Whereas, when a person panics, they think or act too little.
Choking Up: Overthinking
Looking at this situation through the actions of a plan sponsor, let’s say a plan sponsor client responds by overthinking. They request their advisor to … Read More