Many 401(k) participants sign up for a workplace retirement plan without realizing they are supposed to actively choose how their money is invested. When no choice is made, employers are legally permitted to route contributions into a default investment — and in 98 percent of plans, that default is a target date fund.
Zachary Mineur, CFA, CFP® was quoted in The Washington Post on what participants should do to take control of their retirement investments:
“Participants should reach out to their HR departments, log in to their workplace portals, or read the plan documents to learn what the default is and what other available options there may be.”
