Summary: With $2.5 trillion invested in 401(k) retirement accounts 60 million Americans control a powerful chunk of cash. So how much attention do investors pay to this vast pool of savings? Not much. According to a new Wharton analysis of retirement accounts managed by The Vanguard Group in 2003 and 2004 participants in 401(k) plans made little effort to tend their defined-contribution plans once they were set up. Even among those who did trade regularly turnover rates were one-third those of professional money managers. Olivia S. Mitchell executive director of Wharton’s Pension Research Council Stephen P. Utkus principal Vanguard Center for Retirement Research and researchers Gary Mottola and Takeshi Yamaguchi present their findings in a paper entitled ”The Inattentive Participant: Portfolio Trading Behavior in 401(k) Plans.”<br><hr><p style="color:grey;font-size:0.75em;"> Hosted on Acast. See <a style="color:grey;" target="_blank" rel="noopener noreferrer" href="https://acast.com/privacy">acast.com/privacy</a> for more information.</p>
