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January 27, 2009
By Eileen Ambrose - Personal Finance
BaltimoreSun.com

So far, employer efforts to get us to diversify our 401(k) investments aren't a resounding success.

We still tend to hold too much stock or not enough. Or, we invest too heavily in our employer's stock, putting our jobs and retirement at risk if the company falls on tough times.

But employers aren't giving up. The newest twist is called "re-enrollment." With re-enrollment, your employer can shift your money out of current 401(k) investments and reinvest the money in a diversified portfolio for you. You have the right to opt out, of course, if you don't want to change.

It's another sign of how 401(k)s are adopting features of traditional pensions, where workers are automatically signed up and investment decisions are made for them. Eileen Ambrose Eileen Ambrose Recent columns

Why do employers care whether you are diversified?

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