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A new type of 401(k): No fund picking allowed

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The extent of investing—for many people—is choosing from an employer-supplied list of funds for their 401(k). And for many of those people still, that is a nerve-wracking experience. David Booth, founder and co-CEO of Dimensional Fund Advisors, says it’s like giving people a license for a machine they don’t know how to drive. Dimensional launched a new service that provides tools to see if your contributions are likely to get participants to their retirement goal instead of having them move money in and out of funds. The idea places less emphasis on investing and more about teaching clients how to better save for retirement.