Hello!
In the older versions of Unreal it was much easier to place accurate physics actors for characters since they intersected with the preview mesh geometry.
I figured out how to fix this myself though I would suggest that the change should be standard in the engine as the other way it is basically unusable.
Please see the image for clarification:
The way you change this is to Enable view Engine Content in the content browser. Search for “phat”. Open up the materials you find. Uncheck the “Disable Depth Test” checkbox.