This paper examines portfolio choice, trading behavior, and realized rates of return of more than seven thousand 401(k) retirement accounts during the April 1994-August 1998 time period. The evidence on equity allocations is indicative of prudent behavior: on average our investors hold 40% of...

We study a new and unique data set of daily aggregate transfers of funds between mutual funds held in 401(k) accounts. We find that 401(k) transfers correlate strongly and positively with contemporaneous daily returns in the corresponding asset class. GMM estimation based on the...

This paper studies a newly available data set of daily net transfers in several asset classes for roughly 1.5 million 401(k) participants, during the August 1997-September 2002 period. The main stylized fact is that 401(k) transfers correlate strongly and positively with the same-day asset...