Experts worry that 401(k)s put too much emphasis on the investing process, do too little to help people plan, and allow participants to be too aggressive during market rallies or too cautious after crashes. Is there a better a mousetrap?
The 401(k) is the best tool you have to save for retirement, but it can be an awfully clumsy one.
In a typical plan, your employer essentially hands you a list of funds and says, “Here, you pick.” Maybe you spend a weekend agonizing over whether to invest in this stock fund that looks for “opportunities for value,” or this other one that goes after “emerging opportunities.” (Both sound great!)
For some, fine-tuning a retirement portfolio becomes a fascinating pursuit; for most, it falls somewhere between tedious housekeeping and an anxiety-provoking puzzle.