It is always tempting for long-term investors to get caught up in weekly market moves, but experts continue to stress the importance of maintaining a strategic perspective and avoiding emotional and overly reactive decisions.
Net trading activity nearly doubled last month, according to the Alight Solutions 401(k) Index.
Fifty-one percent of 401(k) plan assets owned by participants in their 20s were invested in TDFs, versus 23% for those in their 60s.
Experts continue the debate about actively managed funds in light of a publication from the CFA Institute Research Foundation which asks, ‘Is active management worth it?’
As some investment analysts argue inflation has peaked, and that it should soon return to an average annual rate in line with recent history, others are focused on the effects of growing wage pressure and the competition for labor.
It says work is underway to bring uniformity, clarity and accountability to the environmental, social and governance (ESG) investing market.
Despite some fears, participants saw account growth year-over-year as stocks continued to climb off the March 2020 low and consumer confidence surged back to pre-pandemic levels.
Participants in a Morningstar study showed a higher preference for socially responsible funds than they did for traditional investments.
Investment experts said changes in supply and labor, rising wages and housing prices are key trends to keep watching, along with ESG investing and cryptocurrency.
The move by the Thrift Savings Plan to add sustainable funds into its lineup next summer will likely cause private companies to follow suit, experts say.
Results of a new analysis published by Dimensional Fund Advisors suggest that embracing higher equity exposures prior to and during retirement is an inadequate tool to manage longevity risk.
The latest update of the Alight Solutions 401(k) Index shows the average asset allocation to equities rose in June to the highest level in 20 years. The index shows investors were content to watch their balances rise, as there were no days of above-normal trading activity. Average net trading activity was 0.009% of 401(k) balances, down from 0.011% in May.