3ethos CEO Don Trone published an article for Napa-net.org on why a fiduciary advisor may want to include participants are included in investment decision-making.
Aristotle identified prudence as the ability to understand the perspectives of others — being able to see another person’s point of view. Therefore, the duty to be prudent raises two interesting questions for 401(k) plans:
• Is it a good idea to get the perspective of rank-and-file participants by having them serve on the investment committee?
• Can a plan sponsor be certain that it is being prudent if rank-and-file participants are not actively involved with the investment committee?.