New RIA with familiar faces gets running start at putting advisors into the 401(k) driver's seat

These are smart, successful guys who are master marketers and made themselves a lot of money already.

Just saw some research that low fees is best predictor of mutual fund results – not MStar ratings.

So the advisor gets a 50bp annual fee for basically being a finder and “..will not be recommending funds or providing advice to participants. So, advisors will not be considered a fiduciary as long as they don’t provide advice. We have a solicitor relationship with the introducing advisor,” Gamble says. “We take on the fiduciary responsibility. These advisors do not recommend our funds; what these advisors do is refer participants to Pathway, they’re not making recommendations.”

Be interesting to see the market acceptance of the model. Seems pretty simple. Assume there is no track record for the investment philosophy.

Interesting question is how many self-investors will switch to guided. That’s easy to test.

This sounds like being invited into a swimming pool in a lightning storm! Corey Gamble says that a referral from an advisor is not a recommendation? Since when! They are telling me that an advisor if I recommend my client invest in their funds that I am not a Fiduciary? Do your research. That is not the case. Recent actions by the DOL show it! They are raiding 401k’s and eventually the SEC or DOL will sniff this one out. Run!!!