401(k) investors rushed to a safe shelter in the second quarter
According to Alight Solutions ‘401(k), retired investors were not happy to ride the second quarter’s choppy market index.
The trading levels in these retirement accounts reached the highest level in five years as 401(k) investors actively shifted funds from stocks to bonds.
People mainly withdraw a large amount of 401(k) money Applicable date funds -To my disappointment. Some people traded shares in the company, made US equity funds medium sized for more conservative bonds, providing lower money market funds and stable value funds.
In fact, investors exchanged stocks for bonds on 40 days of 61 trading days, and data shows 42% of the inflow became bonds.
read more: What is 401(k)? A guide to the rules and how they work.
“These moves towards investing in bonds reflect the desire among investors to reduce retirement account volatility,” Rob Austin, who told Yahoo Finance, told Yahoo Finance. “Some people responded to market fluctuations, but they took a more measured approach and re-adjusted their portfolios to meet target allocations, particularly as stocks outweighed bonds in the second quarter.”
According to Austin, the tide began to change in June when trading activities braked, compared to April and May. New contributions to stocks increased from 70% to 70.4%, with international stocks surpassing the list of net inflows of stocks.
These findings contrast to Fidelity Investments’ first quarter. analysis.
“We saw a lot of positive savings behavior among our employees,” said Mike Shamrell, Vice President of Workplace Thinking Leadership at Fidelity Investments at the time.
“It was really encouraging to see people continue to save money, not pull back and make so many changes to their asset allocation, that there was a lot of change,” he said.
That’s why.
Kelly Hannon is a senior columnist for Yahoo Finance. She is a career and retirement strategist and author of the next 14 books.”Retirement Bite: Gen X Guide to Ensuring Your Financial Future,“”Controlled with 50+: How to succeed in the new world of work“And follow her, “You should not get older to be rich.” Blue skiing.
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