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Most Say They Can Manage 401(k) on Their Own

Two-thirds of employed investors who have a 401(k)-type plan said they can manage it on their own, while 35% said they need advice – and many aren’t turning to advisors for that insight.

Among those under age 50, Internet research, cited by 66%, was the top resource cited by those surveyed by Gallup. The second most often used resource was online investment calculators, noted by 58%. Among the under-50 crowd, advisors ranked third (52%) – just ahead of advice from family and friends (50%). In fact, younger investors (50%) were also much more likely than older investors (30%) to turn to family or friends for allocation advice.

That said, nearly two-thirds (63%) of individuals over age 50 cited their personal financial advisor as a resource to help them allocate their investments, well ahead of the 49% who cited Internet research.
Those resources were followed by online investment calculators (46%), and advice from family and friends, at 40%. One in five investors (21%) use target-date funds.

Help Wanted

When asked which of five areas of investing they need the most help with, the largest percentages mentioned were:


  • 32% – knowing what to invest in (32%)

  • 29% – knowing when to reallocate funds


Although 78% of investors who are currently enrolled in a 401(k) say they have access to a financial call center through their plan, only 15% say they rely on it for allocation advice. On the other hand, older investors are twice as likely as those aged 18 to 49 to consult a financial call center (21% vs. 10%, respectively).

On Their Own

Nine in 10 investors say they are satisfied with their own 401(k) plan as a tool for saving for their retirement, including 44% who are very satisfied and 47% who are somewhat satisfied. Just 9% are somewhat or very dissatisfied.

Satisfaction is just as high among those with less than $100,000 invested (90%) as it is among higher-asset investors (93%).

These findings are from the latest Wells Fargo/Gallup Investor and Retirement Optimism Index survey, conducted Jan. 29-Feb. 7, 2016, among 1,012 U.S. investors.

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