Wish your 401k luck, it's going to need it

There is a new rule pending approval which could dramatically change 401(k)s. If the ruling is approved, 401k plan managers, while choosing investments, will have to consider the ESG criteria (Environmental, Social and Governance factors) of investments for the plan. Generally speaking, fees on ESG funds are higher and there is some research which shows the ESG market may have already peaked.

Despite privately held beliefs on whether investments based on ESG criteria are generally better/worse than other investments, these factors, combined or individually, could hurt 401k balances.

Today on Wealth Talks, Tom and John discuss this problem and some ideas for working against a disintegrating status quo.

Resources: How to Build Sustainable Wealth: https://www.life-benefits.com/store/