Retirement plan participants who hand pick their own mix of investment options are generally exposed to greater risk due to reduced diversification and a tendency to not automatically adjust their portfolios over time, according to research from The Principal Financial Group.

In analyzing a subset of 2.4 million defined contribution accounts of The Principal, the company compared do-it-for-me participants who use a target date investment option with do-it-myself participants who select their own allocation and services.

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