Put Some REITs In 401(k)s
I find that diversification options, such as a real-estate investment trust (REIT) fund, is missing in many 401(k) plans. REITs can offer added diversification and ultimately be an employee’s only access to real-estate exposure.
With that being said, I do understand the “vanilla” 401(k) options that are in the marketplace today and I am a huge proponent of the 401(k) line-up being simple and easy to understand. Many employees are confused with their choices and how to allocate the fund breakdown, which ultimately may cause investment paralysis.
