In our opinion, this article, which is an interesting read on participant behavior as it relates to allocation of investments, just further proves that participants need the value of guidance and education to make certain that they are not just picking easy ("top down"). If participants are trying to do the allocations themselves, they should also not be selecting a mixed allocation where it adds up easily to 100%, meaning 10% to this, 20% to that, etc. Really not how a proper allocation is done. We do believe in the general value and virtue of target-date funds, which are prudently allocated based on time horizon (note: not on risk). Not perfect, but the easiest option.
In my 20 years of financial planning and retirement plan advice, I have seen things like this many times, as well as the partial allocations to several different target date funds, which also has minimal risk-reduction, if any at-all.
I will summarize to say that out of this all, regardless of the funds that participants choose, or don't choose, or the allocations that they select, the best is just being in the plan. Like the lottery, you cannot win if you don't "play", you cannot retire (well) if you don't plan. Get in, save, save more, get some guidance and take care of your health so you can live a long fruitful retirement.
Thanks for reading, continued health and success to you and if we can be of any assistance, please do not hesitate to reach to us.