Finance Friday: The Naïve Approach for Retirement Investing

A study from earlier this year found that 401k investors sometimes follow what I call a “naïve” investing strategy. These workers evenly divide their 401k money among their mutual fund choices. Thus if a plan has 5 investment choices, a worker invests 1/5th in each fund; if a plan has 7 choices, the worker invests 1/7th in each fund. The problem is that the people who choose your plan investment options aren’t making plan choices—in any way at all—along this train of thought. The result? A potential train wreck for your retirement savings.


About Mike Wilson

Michael L. Wilson, MBA, CFP®, CRC®, is the owner of Integrity Financial Planning. Prior to founding Integrity in 1998, he worked for two years as a faculty member at the College for Financial Planning in Denver, training other financial advisors. Mike has 10 years of experience in the mutual fund industry, having worked with Fidelity Investments and Invesco Mutual Funds. He holds an MBA in Finance from Baylor University. Learn more about his work at
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