Most 401k programs are made up of a selection by percentage made by the participant. They can be structured by the company administering the fund. They are usually:
1. U.S. Stock Market
2. Bonds
3. Money Market
4. Guaranteed Interest Rate (tied to prime plus something)
These plans allow you based on your opinion to select the percentage of each or some of the elements you want your money to be invested in. Usually you’re adventuresome when you’re younger and maybe go 75% Stock, and 25% Money market, and blow off the rest. If more mature you might go for 25% Stock, 25% Mutual Funds, and 50% Guaranteed Interest Rate.
Companies like The Principal, and Major Insurance Companies are the administrators of these types of deals.
Wayne G4112
