By Lisa Shidler

It is all about the discernment of services provided and the value they add and the supercharged competitive business emerging. The delineation of services rendered has never been so competitive. The deeper one goes the better, as financial services (asset/liability study, investment policy, portfolio construction, performance monitor, etc.) required by statute have not been the focus of the financial services business for quite some time. SCW

What benefit, if any, is there for a Chevron retiree to move to Fidelity? My Dad is retired from Chevron and is wobbly; not sure if he should rollover funds to Vanguard IRA or stay w ESIP.

How Vanguard lost a $19.4-billion 401(k) account to Fidelity and why it's the exception to the rule -- and isn't

Fidelity

BrightScope

Financial Engines

The Vanguard Group

Chevron Corp.

Mike Alfred

Larry Raffone

The days when RIAs were the outsiders at the 401(k) party are fast coming to a close. What's new is that the mass of 401(k) assets 
is getting critical at about $3 trillion; fiduciary advisors are getting appreciated; fat fees and questionable kickbacks are getting exposed and stepping out of line is getting dicier as the Department of Labor tightens the regulatory screws.

The old reasons why the 401(k) business is attractive are still in place: there are fresh assets pouring in every month and when employees leave jobs or retire, they produce rollovers that build up IRA accounts for financial advisors. The drawbacks of getting into the 401(k) business are still in place, too. Dealing with retirement assets is really a second line of business and it remains -- unless you overcharge with hidden fees -- a low margin business with high potential fiduciary liabilities.

Still, the outsourcers, infrastructure and accumulated knowledge for RIAs to capitalize on is growing daily and a the mega-shift of assets away from brokers is making the 401(k) business riskier and riskier -- to ignore.

401(k) Stories

Chevron boots the hyper-fiduciary Malvern, Pa.-based indexing giant in favor of Fidelity after two dismissed lawsuits

How Vanguard lost a $19.4-billion 401(k) account to Fidelity and why it's the exception to the rule -- and isn't

Stephen Winks

Juliet

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