Tag: equity allocation
Abstract We examine the international equity allocations of over 3 million individuals in 296 401(k) plans over the 2006-2011 period. These allocations show enormous cross-individual variation, ranging between zero and over 75 percent, as well as an upward trend that is only partially accounted for by the slight decrease in importance of the U.S. market…
The brief’s key findings are: Since many households fail to shift their 401(k) assets towards less risky investments as they age, target date funds do it automatically. Conventional target date funds rely only on the participant’s age to determine the asset allocation strategy. In contrast, semi-personalized target date funds add information on the participant’s earnings,…