Featured Topics
Retirement Industry
Magazine Archive
Where Do you Go for Financial Advice?
The findings are part of the annual update of the EBRI/ICI 401(k) database, and reflect that assets in lifecycle funds represent 7.4% of total 401(k) assets in the database, and 25.1% of participants in the database were invested in lifecycle funds. The analysis found that about two-thirds of 401(k) plans included lifecycle funds in their investment lineup at year-end 2007. Across all age groups, more new or recent hires invested their 401(k) assets in balanced funds, including lifecycle funds, the data shows. At year-end 2007, 28% of the account balances of recently hired participants in their 20s were invested in balanced funds, compared with 24% in 2006. At year-end 2007, almost 19% of the account balances of recently hired participants in their 20s were invested in lifecycle funds compared with 16% at year-end 2006. The bulk of 401(k) assets continued to be invested in stocks. On average, at year-end 2007, about two-thirds of 401(k) participants' assets were invested in equity securities through equity funds, the equity portion of balanced funds, and company stock. However, the share of 401(k) accounts invested in company stock continued to shrink, falling by 0.5 percentage point to 10.6% in 2007. About one-third of 401(k) assets were in fixed-income securities such as stable value investments and bond and money market funds.
The findings are part of the annual update of the EBRI/ICI 401(k) database, and reflect that assets in lifecycle funds represent 7.4% of total 401(k) assets in the database, and 25.1% of participants in the database were invested in lifecycle funds. The analysis found that about two-thirds of 401(k) plans included lifecycle funds in their investment lineup at year-end 2007.
Across all age groups, more new or recent hires invested their 401(k) assets in balanced funds, including lifecycle funds, the data shows. At year-end 2007, 28% of the account balances of recently hired participants in their 20s were invested in balanced funds, compared with 24% in 2006. At year-end 2007, almost 19% of the account balances of recently hired participants in their 20s were invested in lifecycle funds compared with 16% at year-end 2006.
The bulk of 401(k) assets continued to be invested in stocks. On average, at year-end 2007, about two-thirds of 401(k) participants' assets were invested in equity securities through equity funds, the equity portion of balanced funds, and company stock. However, the share of 401(k) accounts invested in company stock continued to shrink, falling by 0.5 percentage point to 10.6% in 2007.
About one-third of 401(k) assets were in fixed-income securities such as stable value investments and bond and money market funds.
Copyright ©1989-2010 Asset International, Inc. All Rights Reserved. No Reproduction without Prior Authorization