Speaking at an industry conference years ago, Schwab CEO Walt Bettinger — who grew up in the 401(k) world — noted that there are three types of 401(k) providers: market leaders, market followers and rule breakers. Clearly casting Schwab as a rule breaker, Jim McCool, Schwab’s COO (and Bettinger’s longtime colleague) announced the firm’s all-ETF 401(k) platform at the 401kWire Summit in March 2011. McCool stunned a room full of active mutual fund executives when he declared that participants should spend their money on advice and not active money management. But rule breaking can take time — as is evident in Schwab’s recent announcement that it may delay the all-ETF 401(k) platform’s launch until 2014. Stay tuned.
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