Tomorrow is National 401(k) Day, an effort from The Profit Sharing/401k Council of America to highlight the importance of employer-sponsored profit sharing and 401(k) plans. An annual event, National 401(k) Day is the first Friday after Labor Day (because retirement follows work. Isn’t that cute?).
401(k)s have remained relatively stable through the recession, but, according to the Wall Street Journal, that may just be a result of investor inertia. When forced with a difficult decision, investors will look for rules of thumb to guide them. “If you like stocks, why not put 100% of your money into them? If you don’t, then why not set a zero allocation to stocks? And once you pick a nice round number, why change it?” the paper asks ironically.