CEO Won’t Allow Private Funds In Company’s 401(k)

Observant1

The CEO of RPM International will not allow any private funds in his company's 401(k).
He encountered hassles and delays when transferring ownership of several private-equity funds
to close his father's estate. The transfer of private-equity funds—purchased for his own account—
into an LLC has taken months and some managers charged steep fees for a change in registration.

"Sullivan adds, 'I see this as a move [by private-fund managers] to get their fingers on trillions of dollars
in 401(k) assets and put them into investments that are totally inappropriate. The vast majority of people
who own 401(k)s shouldn’t be investing in illiquid, expensive, hard-to-value assets.'"

"'You sense my anger at a money grab that will not serve this group of hardworking Americans very well,'
says Sullivan. The people driving this don’t give a damn about the average investor. They’re saying,
‘This is the biggest pot of money that we don’t have our fingers in yet, so let’s go get it.’"

https://www.msn.com/en-us/money/markets/why-this-ceo-won-t-let-private-funds-near-his-company-s-401k/ar-AA1UlblF

yogibearbull

Lot of things that IRS or DOL allow aren't allowed by many retirement plans. Plan sponsors/committees have to act like fiduciaries. So, the plan rules are typically a subset of IRS/Treasury/DOL rules. That's a good thing.

WABAC

The people driving this don’t give a damn about the average investor. They’re saying,
‘This is the biggest pot of money that we don’t have our fingers in yet, so let’s go get it.’"

It's hard to conclude otherwise.

a2z

there is also some gatekeeping by corporate HR for plan options, and the corruption (in selection) has been reduced by employee demand for index vehicles. mostly gone are the +2% active fund fee takers, replaced by +1% fee closet indexers.

however, do not be surprised by either verbal or written attempts by trump\gop to force this into plans. the grift is fully in, and the alts expect payback.

Mark

You know I can't even stand to look at him from the backside either. From all angles he just oozes disgusting.

Sven

@yogibb said :
Plan sponsors/committees have to act like fiduciaries. So, the plan rules are typically a subset of IRS/Treasury/DOL rules. That's a good thing.

Exactly. It is likely this is the last set of guardrail in order to protect millions of 401(k) participants.
Private debts are also bad for investors who will need them for income. Cannot imagine that retirees cannot take any withdrawal to pay for their living expense.