The limits of 401(k) Risk Scores
Many 401(k) decisions start with a risk questionnaire.A favorite tool of you online 401(k) provider. You answer a series of questions.Time horizon, investment experience, and stock market risk comfort.You are then given a label—Conservative, Moderate, or Aggressive....
Most 401(k) investors evaluate mutual funds the wrong way
At first glance it seems completely reasonable.You want to own the 401(k) mutual funds.With the best investment performance. If one fund has produced stronger investment returns.The higher-performing option feels like a rational decision. The problem is that...
A 401(k) Investor Had 40 Fund Choices. The Real Problem Wasn’t the Number of Funds.
Even after multiple mutual fund menu reviews.Many individual 401(k) investors feel stuck.Overwhelmed by confusing names and similar choices.. The common 401(k) industry assumption.Is that more mutual fund choices improve decision quality. If a few choices are good,...
