401(k) Real Talk Episode 187: April 8, 2026
Welcome to this week’s edition of 401(k) Real Talk, where Fred Barstein, contributing editor for Wealth Management’s RPA channel, reviews all of last week’s industry news and selects the five most important/interesting stories.
Worth Reading
Read the full raw transcript below:
Greetings & a warm welcome to this week’s edition of 401k Real Talk. This is Fred Barstein contributing editor at WealthManagement’s RPA omnichannel and CEO at TRAU, TPSU & 401kTV – I review all of this week’s stories and select the most important and interesting ones providing open honest and candid discussion you will not get anyway else. So let’s get real!
First Story
The DOL released proposed rules for the use of alternative investments which many experts have praised as being asset neutral noting that the agency should be advocating for proper due diligence, not any type of investment.
Yet alts require plans and their advisor to conduct different due diligence as this asset class is different than current ones and are less transparent. More education is required even if these investments are just sleeves in TDFs and managed accounts.
Though some experts believe that alts can boost returns with fewer companies going private, plan sponsors and advisors are not clamoring for it yet though litigators eagerly awake their use. Recent private credit redemption issues are causing concern but may just be a blip.
Next story:
The March job report crushed expectations with 178,000 new positions added led by education & healthcare, leisure & hospitality, and construction. Unemployment rates dropped a tick.
Some experts say the numbers are deceiving as many Americans have dropped out and have stopped looking plus a big nurse strike ended.
Regardless, it is a good sign and puts pressure on the Fed to lower interest rates and at least keeps companies focused on benefits with most of the cost of retirement plans borne by participants as well as an increased focus on healthcare fiduciary liability and costs, especially pharmaceuticals.
Next story:
Cetera and Ameriprise are the latest BDs to be hit by customer class actions for alleged failure to protect data with data breaches reported by clients of Hightower, Mercer, and Edelman Financial Engines.
FINRA has responded by launching a portal where firms can report cyber threats.
As advisors turn to DC plans to find new clients, the issues around data will only grow as firms struggle to protect it and limit misuse.
Next story:
The good news is that a major publication like Newsweek is covering DC plans. The bad news is that arguments about the evils of ERISA litigation and the merits of private investments appear to be one sided by a legal expert who has little to no industry experience.
The author, Miami based Josh Hammer who is less of a practicing attorney and more of a political pundit, praises Trump’s executive order on alternatives which he claims have been limited by Washington bureaucrats and rails against ERISA litigation which he alleges are promulgated by a cabal of trial attorneys.
It’s worth noting that the Southern Poverty Law Center has characterized the Newsweek opinion section under Hammer as authored by radical rightwing activists.
So as DC plans become mainstream, so will media coverage which hopefully will be more measured and fairer than the recent Newsweek column.
Finally
The most important activities of a plan sponsor are the selection and monitoring of their retirement plan advisor. Yet plans spend the least amount of time on this activity compared to investments and record keepers. Why?
Read my recent WealthManagement.com/RPA column about the 10 biggest mistakes plan sponsors make with their advisor.
Finish
So those were the most important stories from the past week. I listed a few others I thought were worth reading covering:
RPA fees continue to decline
How stable if your stable value fund?
Will DOL pushback on ERISA litigation be harmful?
Median number of investment options unchanged over past five years
Retirement education provider shows dramatic engagement increase through novel approach
Please let me know if I missed anything or if you would like to comment. Otherwise I look forward to speaking to you next week on 401k Real Talk.