“Investors feel confident they’re getting the most out of their 401(k)s but acknowledge not knowing much about them,” writes Thomas Seubert in An interesting wealthmanagement.com piece, citing a Scarborough Capital Management’s 401(k) Pulse Survey. Other excerpts from the article (headlined 401K Investors Feel Confident, Know Little About Their Investments):
“Of the 1,000 investors with 401(k)s surveyed, 68.7 percent responded they are confident or somewhat confident in investment decisions made for their 401(k), while only 22.7 percent of respondents believe they know how their 401(k) is actually invested. About a quarter of those surveyed said they feel totally uneducated on the subject.
“The survey also indicated that, in certain situations, investor behavior is difficult to predict. About an even split of respondents with multiple 401(k)s opted to keep them separate as compared to those who rolled the accounts over. Likewise, about half of all investors decide to work with a financial advisor—regardless of their income level.
“The survey also found a higher number of young people dipping into their retirement savings in order to purchase a home. While, generally, few Americans actually dip into their 401Ks to purchase real estate purchases, a majority of those who did say they would do it again.”