When Nest Eggs Change Colors
FOR as long as 401(k) accounts have been around, investors have generally stuffed them with stocks, while bond and cash holdings have been relatively sparse.
Yet for the first time since Hewitt Associates began tracking 401(k) accounts in 1997, American workers in February held less than half of their 401(k) money in stocks.
Instead, most of their nest eggs now sit in fixed-income and cash instruments, including stable-value, bond and money market funds, according to Hewitt, the employee benefits consulting firm. The proportion of 401(k) money in stocks fell to slightly less than 48 percent in February, down from 53 percent at the start of the year and 69 percent in 2007.
Read more via Fundamentally – Look Inside the Nest Eggs, and You’ll Find Less Stock – NYTimes.com.