But people aren t doing it. We need to do it for them. Even if you could teach this, most people wouldn t go back to rebalance their portfolios, he explained in a recent telephone interview. The problem isn t the aggregate, it s what the individual has , he said. There will be no sense of strategy that has been communicated to the participant.
Company stock is another problem.
A lot of companies have a very strong stock culture. If you work for the company, you re supposed to own the stock. But every year some company goes down and leaves its employees high and dry. Then offer pre-built portfolios at different risk levels. The same portfolios, constructed with a combination of inexpensive asset indices and managed assets, could be offered at large cost savings.