Investing in target-date funds continues to be popular in 401(k) plans, especially among participants in their 20s, according to a study by the Investment Company Institute and the Employee Benefit Research Institute.
Younger plan participants had allocated 54.1% of their 401(k) assets to TDFs at the end of 2019, the study found, compared to an allocation of 28.8% among participants in their 60s. And 31.3% of 401(k) assets in the database overall were invested in target-date funds at year-end 2019, up from 26.6% at the end of 2018.
The study also showed that more workers are investing in equities, and linked that to the use of target-date funds.
“As 401(k) plan participants have increased their investment in target-date funds, their overall share of assets in equities has grown,” Craig Copeland, EBRI director of wealth benefits research, said in a statement.
About two-thirds of participants in their 20s had more than 80% of their 401(k) plan accounts invested in equities at the end of 2019, up from less than half of participants in their 20s at the end of 2007. Overall, almost 95% of 401(k) participants had at least some funds invested in equities at year-end 2019.
Only 5% of plan assets were invested in company stock at the end of 2019, down from 19% in 1999.
The Reddit trading community's formal comment letter against the proposal is drawing widespread attention across finance and tech circles.
RIA aggregator adds $4.8 billion in client assets across seven states as demand grows for alternatives to traditional succession models.
As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management
Shareholder targets FS KKR Capital's directors over alleged portfolio valuation and dividend missteps.
UBS has a history of costly litigation stemming from the sale of volatile investment products.
As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management
Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline
