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Not completely as typical 401K investor would change their allocations from equity to non-equity.
by aynyc 4y ago
Not completely as typical 401K investor would change their allocations from equity to non-equity.
- kortilla 4y agoNo, the typical 401k investor does not change their allocations.
- theandrewbailey 4y agoTarget-date retirement funds automatically do.
- adastra22 4y agoAnd even these days the typical investor probably uses a financial advisor, who would do such fund reallocation, even if they don't use target date funds explicitly (which they should).
- FooBarBizBazz 4y agoDo they really? When I've looked around at financial advisors they've wanted at least several percent annually of AUM, which, to my mind, is just insane.
- adastra22 4y agoI agree. I don’t use them myself. There are few-only financial advisors though, which are all I’d recommend people use. I’m just saying financial advisors are common. Not that they should be.
- kortilla 4y agoOnly when you’re getting close to the target retirement date. Even those funds benefit from downturns early to mid-career.
- nonethewiser 4y agoFor this hypothetical, I don't think it makes sense to consider anything but a typical 401k investor that only invests in the sp500. Thats all that we're tracking here.