Y’know there’s this thing called Target Retirement Date ETFs right? Also, aren’t most 401ks either managed or extremely restricted towards very safe investment options?
Y’know there’s this thing called Target Retirement Date ETFs right?
Of course I do.
But a surprisingly large number of people either don’t, or don’t understand it and are terrified of making a mistake, so they end up making the much worse mistake of leaving their 401k contributions in the cash sweep account. (I think in recent years 401ks have started putting contributions in target-date funds by default instead of making people affirmatively choose it, but still, a lot of people lost a lot of years of growth to that issue alone.)
And again, that’s not even talking about the people who simply don’t [think they] make enough money to contribute at all, but would have had money going to their retirement if it had been in the form of a pension that they never had the option to decline and get in their paycheck instead. I have never heard of a 401k that forces you to put money away in order to ensure that your retirement is actually adequately funded, the way that pension plans used to handle automatically.
Y’know there’s this thing called Target Retirement Date ETFs right? Also, aren’t most 401ks either managed or extremely restricted towards very safe investment options?
Of course I do.
But a surprisingly large number of people either don’t, or don’t understand it and are terrified of making a mistake, so they end up making the much worse mistake of leaving their 401k contributions in the cash sweep account. (I think in recent years 401ks have started putting contributions in target-date funds by default instead of making people affirmatively choose it, but still, a lot of people lost a lot of years of growth to that issue alone.)
And again, that’s not even talking about the people who simply don’t [think they] make enough money to contribute at all, but would have had money going to their retirement if it had been in the form of a pension that they never had the option to decline and get in their paycheck instead. I have never heard of a 401k that forces you to put money away in order to ensure that your retirement is actually adequately funded, the way that pension plans used to handle automatically.