In this special edition of Finance Lab, especially for financial professionals, we explore the intricate world of ERISA and what advisors need to know when advising on 401(k) assets held away. If you’re a financial advisor, particularly if you’re not an ERISA specialist, this episode is for you! There is a tremendous opportunity to provide added value to clients, but it comes with some risk if it’s not done properly. Our guest this week, Kevin Clark, the CEO and co-founder of Plan Confidence Corp., shares his journey, highlighting the pivotal year of 2008 when market upheaval compelled him to master ERISA rules and regulations and build specialized software to guide clients on managing 401(k) assets effectively.

We discuss what it means to be an ERISA Fiduciary, the difficulties that come along with that and also how advisors who are not one can proceed. We also discuss the evolving regulations, such as the Fiduciary Rule of 2016 and later updated guidelines, shedding light on the potential risks faced by advisors who fail to adhere to both these and upcoming rules. Don’t miss this episode if you are a financial professional who has an interest in ERISA guidance!

Guest Bio: Kevin T Clark, RF™ is a self-proclaimed ERISA nerd and a DALBAR certified Registered Fiduciaries (RF™). Previously a financial advisor for over 20 years, Kevin is the CEO and Co-founder of Plan Confidence Corporation. Plan Confidence Corporation is an “Internet Only” SEC registered investment firm specializing in providing advice to Americans investing in their employer’s retirement plans (401k, 403b, TSP, etc).

Key Moments:

0:46: We are exploring ERISA intricacies for financial advisors with guest Kevin Clark of Plan Confidence.

1:59: In 2008, Kevin tackled 401k challenges, crafting a process and software to navigate ERISA complexities.

4:48: Hear how Plan Confidence Corp offers tailored software guiding 401k holders, ensuring compliance with ever-changing regulations.

7:06: Kevin explains how working with 401k plans requires becoming a risk fiduciary.

8:36: Working with 401k plans demands a meticulous, documented process, from investment choices to advice delivery.

11:50: Cory points out that advisors must adhere to stringent fiduciary rules.

13:21: Kevin emphasizes that advisors face personal liability and their firms could face class action lawsuits under stringent fiduciary rules.

16:50: Cory adds that a documented, prudent process is key because fiduciaries are liable for their methods.

17:56: Kevin argues that a prudent process shields against liability.

21:39: Investor behavior shifts demand new strategies for advisors.

22:35: What are the two moving parts of a 401(k)?

26:05: Plan Confidence offers customizable software empowering advisors to tailor models for clients themselves based on individual needs.

Additional Resources:

Finance Lab website: https://www.financelab.dalbar.com

Visit the Plan Confidence website: https://www.planconfidence.com/

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