I always wondered why my brokerage account felt so modern (Wealthfront), but my 401k feels like it's from the stone age. Makes complete sense.
Do all employees have to use the automatic advising, or can they invest independently if they want?
Do all employees have to use the automatic advising, or can they invest independently if they want?
That said, we've found that most 401k users don't want to bother with analyzing and choosing between dozens of confusingly-named funds. They're much happier (and better off financially) with a solution that automatically gives them a globally diversified, low-cost, regularly-rebalanced portfolio without doing any of the work.
That said, employees using our investment advice get additional diversification (6-7 asset classes), as well as a more personalized recommendation that takes into account not just your age, but also your risk tolerance, financial situation, other investments, etc. We think that's better than a one-size-fits-all fund.