Choosing the right target-date fund is critically important for plan sponsors, and yet it’s a decision that gets made by default far too often, according to Mark Davis, senior vice president and financial adviser with CAPTRUST Financial Advisors. Davis made his remarks as part of a panel discussion at the ASPPA 401(k) Summit, held recently in Las Vegas.
Particularly in the smaller plan market, he noted, plan sponsors often choose their recordkeeper first, then default to the investment options offered by the recordkeeper when it should be the reverse.
