74% of participants say that they have a little bit invested in each option in their 401(k) plan, including target date funds.
More than 20% of participants say they have no idea how best to diversify a retirement account.
52% of participants indicated they don’t have the time, knowledge, or experience to manage their own 401(k) portfolio.
With no rebalancing, the asset allocation of a 40% Equity/60% Bond portfolio over 5 years ending March 31, 2014 would have changed to 58% Equity/42% Bond. We’ll keep you balanced.
Asset allocation accounts for more than 93% of a portfolio’s return variance.
Only 37.8% of participants invested in target date funds are using them correctly as their only investment option.
Utilizing professional asset-allocation has shown to increase performance an additional 1% annually.