Procedural vs. Substantive Prudence: Why Fiduciaries Are Switching to Soteria
⚠️ Advisors & Plan Sponsors: Are you exposing your clients (and your firm) to unnecessary fiduciary liability by relying on "standard" Target Date Funds?
The current industry standard—"Procedural Prudence"—is failing. By defaulting to off-the-shelf TDFs, fiduciaries are exposing Baby Boomers to up to 85% risk in the critical "Retirement Risk Zone."
In this deep dive review, we explore the Soteria Investment Model: a software solution designed for Recordkeepers and RIAs that facilitates Personalized Target Date Accounts (PTDA).
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In this video, we cover:
The Fiduciary Trap: Why sticking with the "big three" TDF providers offers legal safety for you, but financial danger for your participants.
The "Risk Zone" Math: Why a market correction at age 65 is mathematically unrecoverable compared to age 30.
The Bond Duration Risk: Why the "safe" portion of traditional portfolios is no longer safe in today's interest rate environment.
Substantive Prudence: How to upgrade your fiduciary standard from "following the crowd" to "following the science."
The Soteria Solution: How our software allows fiduciaries to implement the Safe Landing Glide Path (SLGP)—a U-shaped equity path designed to mitigate Sequence of Return Risk without sacrificing longevity.
CHAPTERS:
0:00 - Introduction: The "Silent Default" Crisis
2:56 - Sequence of Return Risk: The Mathematical Reality
11:05 - The Legal Shift: Procedural vs. Substantive Prudence
16:30 - The Solution: Personalized Target Date Accounts (PTDA)
27:23 - Fiduciary Liability: Lessons from Recent Cyber Theft Cases
32:20 - How Soteria Software Solves the "One Size Fits All" Flaw
Who is this video for?
This content is designed for Plan Sponsors, ERISA Attorneys, 3(38) Investment Managers, and Financial Advisors looking to mitigate liability and offer a scientifically superior alternative to standard Target Date Funds
