Updated 2026-03-30
Understanding 401(k) Investment Options
Target-date funds, index funds, expense ratios, and how to build the right portfolio
The difference between a 0.03% index fund and a 1.0% actively managed fund can cost over $100,000 across a career. About 85% of actively managed funds underperform their benchmark index over 15-year periods.
Common 401(k) Fund Types
- US Stock Index: S&P 500 or Total Market, 0.01-0.05% fees
- International Stock: Global diversification, 0.05-0.15% fees
- Bond Index: Stability and income, 0.03-0.10% fees
- Target-Date Fund: Auto-adjusting allocation, 0.08-0.75% fees
Pavlo Pyskunov
Managing Director & Investment Fund Director
Pavlo Pyskunov analyzes employer-sponsored retirement plans using IRS publications and DOL Form 5500 filings, helping workers maximize their 401(k) savings through data-driven guidance.
Last updated: 2026-03-30