NU Online News Service, Nov. 19, 2:45 p.m. – Stock market volatility caused little noticeable change in 401(k) plan asset allocations between the end of 1999 and the end of 2000, according to the Employee Benefits Research Institute, Washington.
Plan participants in the 2000 EBRI/ICI database, which EBRI maintains in conjunction with the Investment Company Institute, Washington, invest three-quarters of plan balances directly or indirectly in stocks.
EBRI found that 51% of plan balances are invested in stock funds, 19% in company stock, 8% in balanced funds, 5% in bond funds and 15% in stable-value investments such as money funds or guaranteed investment contracts. The average account balance (net of plan loans) for all participants at year-end 2000 was $49,024, 12% lower than the previous year.
However, the average account balance of participants who held accounts in both 1999 and 2000 declined only 0.1% in 2000.