It was in “This is Spinal Tap” where I heard the line how there was such a fine line between stupid and clever.
When it comes to protecting retirement plans, I always say KISS, the acronym for “keep it simple stupid”. So many times I have seen plan sponsors try to be clever and there is always a high price to pay for being clever.
Whether it’s allowing company stock, too many proprietary funds, or hiring a plan provider who is a relative, people who ask for trouble in their role as 401(k) plan sponsor will find it. Being a plan sponsor means minimizing risk and risky behavior will make you end up paying a price.