So it does keep you investing in good markets and in bad, and that I think tends to serve as a safeguard against investors' own worst behavioral tendencies.The other thing is that they really make it easy for people who are a little bit lazy about their investments.So regardless of the quality of your plan, once you've done a little bit of homework on what the investment options are like, you do want to contribute at least enough to earn that match if your company is indeed offering one.
If you are contributing to a Roth 401(k), the tax treatment is almost exactly the opposite.
You are looking at the investment options, and you can find research on those individual funds on
But you also want to look for what's called the Summary Plan Description.
The key feature there is that you do typically get a higher interest rate than you would earn on your cash, but you get all of the safety or nearly all of the safety of cash, or you get cashlike attributes, I should say.
People who invest in the Thrift Savings Plan that is available to federal government employees have a nice option that is somewhat similar called the G Fund, where you have higher interest rates, but again a lot of safety built in.