Top five questions plan sponsors have about 401(k) s (and the answers)
Dead aim
Defaulting 401(k) investors into the target date fund option of the plan improves participant’s diversification and returns over time while reducing volatility. J. P. Morgan proprietary data on more than half a million 401(k) participants shows that investors in target date funds beat their counterparts who selected their own investments by more than 2% on average over three years.
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