Is there a magic number for the number of investment alternatives in a 401(k) plan? No, but, there is a magic range. I have seen a plan that has 200 choices, most of which are inappropriate for an unsophisticated investor with a long term perspective. I have talked to people who are a part of this plan and most of them got confused and walked away. I have seen plans with as few as four choices, which is marginal, but more important than the number is the type of investment choices available....
Published on September 24, 2013 06:53