For decades, building a diversified retirement plan portfolio appeared relatively straightforward. Participants were told to mix stocks with bonds, include U.S. and international equities, and rebalance periodically. These days, many advisers argue those assumptions deserve another look. As globalization has tied markets more closely together, plan fiduciaries are being forced to think more critically about where diversification actually comes from when creating a lineup from which participants can choose.
“‘Let’s make a more integrated world economy.’ Well, guess what comes with that? We all start to move in lockstep,” says Rob Massa, managing director and retirement practice leader at Prime Capital Financial. “You want something that’s going to offset some of that risk, and it’s becoming increasingly difficult to do in the 401(k) arena.”
Want to read the full article? Check it out here.
