At least one major recordkeeper has noted a big uptick in participant trading in the wake of recent market moves – but have you sensed any shifts in the plans you support? Have you rebalanced your account(s)?
As it turns out, the Alight Solutions 401(k) Index™ found that 401(k) trading activity has been exceptionally high in recent days, with trading on Feb. 5 almost 12 times the “normal” level of trading. Alight notes that the last time trading occurred at that level was in August 2011, coinciding with the last time the S&P 500 saw its biggest single-day drop.
That uptick was a rarity for trading in the index, which tracks the activity of some 2 million 401(k) participants and $200 billion in plan assets. Indeed, 2017 was the slowest trading period in two decades, though the fourth quarter had seen an uptick in activity. The slowing of activity had been at least partially attributed to the presence and prevalence of target-date funds, now the largest asset class in the 401(k) Index.
In this week’s NAPA Net reader poll, we’d like to know: Have you sensed an uptick in concern, or movement/rebalancing in the plans you support? And have you done anything with your own retirement accounts?
You can reply to this week’s NAPA Net reader poll at https://www.research.net/r/DWP398L.
And we’ll have it all wrapped up for you on Friday!
