How have 401(k) participants allocated their investments?
Participants, on average, had about 68 percent of their 401(k) plan balances invested directly or indirectly in equity securities—the sum of equity funds, company stock, and the equity portion of balanced funds. At year-end 2007, 48 percent of plan balances were invested in equity funds (which include mutual funds and other pooled investments), 11 percent in company stock, and 15 percent in balanced funds. Eleven percent of plan balances were invested in guaranteed investment contracts (GICs) and other stable value funds, 8 percent in bond funds, and 4 percent in money funds.
