Tag Archives: Risk Management

Risk Management in a Typical 401(k) Plan

Posted on May 2, 2006 by

Background In 1980, a tiny new element of the retirement investment world was born under the not-new Internal Revenue Code Section 401(k). The IRS unexpectedly issued a favorable ruling in response to a request from a consulting firm regarding a pre-tax deferred pay plan. Presto. A whole new era for employee retirement programs began that was destined to re-make the entire retirement plan world (yes, the entire globe). A hallmark design feature which is almost universal in 401(k) plans (but was not required, or even specified in the Internal Revenue Code) is typically the pass-through to employees of the right … Continue reading →

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RISK…..a four-letter word that deserves a real-world definition

Posted on July 14, 2005 by

At FiduciaryVest, we, like our competitors are focused on helping clients manage their investment risk. But, what do we mean when we discuss the topic? After Harry Markowitz published his now 52-year-old paper, unveiling what is still called “Modern Portfolio Theory,” the investment world developed a fetish about the variability of returns earned over annual periods. One of the most important areas of Markowitz’s research was the impact of diversification (low correlation) on overall returns. But, as portfolio management grew exponentially during the past twenty years, most of the heat and light associated with the selection of managers was focused … Continue reading →

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