- Feb 2018
I'm questioning your exceptionally poor expression of your thoughts.Yes I know. There are lots of options within most 401k plans. When you are close to retirement you shift to lower earning assets that are more secure so you do not risk much. When you are younger you are in assets that have higher earning potential but are more risky. Why is it you are questioning this basic stuff?
Every 401k plan I was in, --and it has been 13 years, --offered choices from mutual funds (usually those of the house) and little more. You're correct that as you near retirement you should begin transitioning to more stable investments, like money markets in my opinion, specifically so you can transfer the contents of the 401k to your own personal IRA where you will have complete flexibility and control, or can opt for the house to manage it for you. (I wouldn't.)
The reason for keeping total control is that a managed account will always be invested in a "balanced" position, mainly so that when it loses money, you cannot sue for mismanagement since standard and acceptable fiduciary guidelines were followed. And you will, in that case, be GUARANTEED to lose money, but it will be defensible.
So now, how about answering my question in post 27 above? ... How have you done?