More than half (55 percent) of 401(k) investors never rebalanced or changed their investment options in 2008. About a third of 401(k) investors have no idea what percentage of their account is invested in U.S. stocks, foreign stocks or fixed income, nor did they open their fourth-quarter statements, according to a survey by registered investment advisor I-Pension LLC. Of those who did read their statements, 72 percent spent less than three minutes reviewing the results.
“These results point out that a lot of work still has to be done to help 401(k) participants maximize this incredibly valuable workplace benefit,” says Jane Mancini, CEO of I-Pension. “The markets were down dramatically in 2008, but well-diversified portfolios were still the best choice for most investors.”
More than 80 percent of respondents indicated they made their 401(k) investment decisions on their own. These same respondents said they would be likely to request assistance if their employer provided access to investment advice.