When Chris Costello wanted to test his new online 401(k) advice service called blooom, he asked his sister if she would let him peek under the hood of her account.
What Costello found was typical of workers who do not pay much attention to their accounts ? it was allocated badly, leaving her behind on her retirement goals.
In his sister’s case, she had put her funds in a money market account when the recession hit in 2008 and never moved them back into the market.
“It’s been like four or five years of recovery, and she had made like $10,” says Costello, who is co-founder and chief executive of blooom.
Overall, workers have more than $4.3 trillion invested in 401(k) plans, according to the Investment Company Institute. Yet many of the 52 million workers who participate in 401(k) are not good at making their own investment choices, experts say.
Read More At Reuters.