In recent years, the influence of politics has permeated nearly every aspect of our lives, from the beverages we choose to drink to the cars we drive. It's no surprise that similar issues have begun to surface in the realm of retirement plan fiduciary decisions. As fiduciaries, we are continually facing pressures from both sides of the political spectrum regarding the types of investments and holdings in retirement plans. These pressures may involve foreign adversaries, social and environmental goals, or religious considerations.
These challenges require fiduciaries to be knowledgeable and aware as they make decisions about retirement plans. Whether it's divesting certain assets or including new ones, it's crucial to ensure that these decisions further the goals of the retirement plan participants as the primary objective. Straying from this focus can create risks and challenges that may seem wise today but could prove problematic in hindsight.
Watch Erik's video discussing this topic in this week's Fiduciary Focus.