SumDay
Thinks s/he gets paid by the post
- Joined
- Aug 9, 2012
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- 1,862
http://www.nytimes.com/2013/02/12/business/automatic-401-k-plans-growing-in-acceptance.html?_r=0
JANE DOE never noticed as hundreds of dollars disappeared from her paychecks since she was hired two years ago.
Her company started by taking 3 percent out of every check to put into her 401(k) retirement plan. After one year, Ms. Doe -- who is fictitious but typical -- got a 1.5 percent raise, but the company diverted most of that into her 401(k). The same thing happened the following January.
The money has been going into an investment called a target-date fund, which Ms. Doe never specifically chose. That fund is programmed to select an array of stocks, bonds and other asset categories based on Ms. Doe's age. As she grows older, the percentages will gradually shift, without any instructions from Ms. Doe......