Just as they hold fixed income assets to diversify the risk of stocks, participants should hold Roth savings to diversify the risks associated with pre-tax savings. |
They have to make a judgment. The more your employer is putting in pretax the more you should switch to Roth. |
We're pretty confident it will be maintained or continued. Unlike other Bush tax provisions, it actually raises tax revenue under the budget rules because participants are paying taxes today. |
You could argue that lifecycle funds are the ideal investment for 401(k) investors throughout your lifecycle, given their broad diversification. |