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Participants are panicking

When markets go south, participants fly for safety. I’m a fan of dollar cost averaging, but that’s just me and my situation as a 50-year-old with 20 years left to maybe retire.

Alight Solutions has published September updates from its 401(k) Index, showing that with stocks having their worst month since March 2020, plan participants have shifted to safer investments.

Aside from two trading days in the month, it showed that net trading activity moved money from equities to fixed income. Stable value funds accounted for 80% of net inflows and money market funds received another 15%. Half of the net outflows were from target-date funds.

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