Failing to Diversify
- Holding too few funds
- Investing in the same kinds of funds
- Loading up on company stock
Rarely Changing Allocations
- 80% of participants never make changes to their original fund allocations.¹
Making Decisions Not Based on Research or Long-Term Strategy
- Using tips, rumors and latest financial news to make investment decisions.
- Relying on friends, family and co-workers for advice.
- Chasing returns, trying to time the market or using “buy-and-hope” investment strategies.
Not Acting on Advice from Financial Advisor
- Most Financial Advisors stay involved with their client’s investments, but prefer to leave their 401(k), 403(b) and 457 accounts alone.
- When the average investor gets advice from a Financial Advisor they often fail to follow through on that advice.
Not Saving Enough
- With the U.S. Social Security System being strained and many companies discontinuing their pension plans, the 401(k), 403(b) and 457 plans become even more important.
¹ Source: Hands-off: Holders of 401(k) Retirement Accounts Are Not Your Typical Investors, Knowledge @ Wharton, 2006