Do you know how your 401(k) funds are invested—the kind of companies they hold, and what those companies are doing to respond to urgent global risks like climate change? There’s a good chance that, like almost half of workers, you don’t. You hand your contributions over to the plan, which puts them in whatever investments your employer and their fund manager have picked.
Then you sit back and hope your balance grows. Whether it does, and how much, depends on where those fund managers are putting your money. Since default allocations and target date funds are how most people’s 401(k) funds get invested, it’s imperative that they reflect the financial interests of employee-investors like you.
