Designing a product or platform for the retirement plan market is an incredibly complex task, involving a large number of integrated relationships and coordinated protocols between unrelated parties which all must work seamlessly. “Looking under the hood” (its that Detroit thing, y’know. I do wear my “Imported From Detroit” shirt with pride) of even the simplest of 401(k) arrangements will reveal surprisingly sophisticated sets of arrangements.
It is almost mind boggling to think of what is behind, for example, executing even the simplest 401(k) transaction: an electronic trade between two unrelated mutual funds on a trust platform. With my apologies to James Joyce and my English teachers from the Sisters of the Holy Family of Nazareth, the let me provide the following run-on sentence, listing a number of the logistical tasks involved in pulling off of this “simple” transaction: