Maximizing Returns in Your 401(k)

Just in time for New Years resolutions, a group of folks at Wharton and Vanguard have collaborated on an empirical study of more than a million 401(k) plan participants to figure out which trading strategies work (and which don't) to maximize long-term returns.  Their findings: high-turnover trading hurts long-term returns, periodic re-balancing helps long-term returns, and holding balanced or lifecycle funds is the best "trading" strategy of all.  For the entire article, see Takeshi Yamaguchi (Wharton), Olivia S. Mitchell (Wharton), Gary R. Mottola (Vanguard), & Stephen P. Utkus (Vanguard), Winners and Losers: 401(k) Trading and Portfolio Performance.

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