"Without policies such as regulations or taxes on very polluting investments, it's unlikely that wealthy individuals making a lot of money from fossil fuel investments will stop investing in them," says one economist.
I think we need to keep in mind that as the options for 401k investing increase, program participation drops. So in many cases it can become a question of having a retirement fund or having nothing at all. As you increase the perceived barrier to entry for people, they get overwhelmed and quit, or more likely, never start. A majority of people aren’t great investors, they’re not even good investors, and they have no interest in learning the normal guidance. That’s why target date funds are so popular in the first place. Planning to retire in 2050, great, pick the 2050 fund, done. Too many people don’t even get that far.
I think we need to keep in mind that as the options for 401k investing increase, program participation drops. So in many cases it can become a question of having a retirement fund or having nothing at all. As you increase the perceived barrier to entry for people, they get overwhelmed and quit, or more likely, never start. A majority of people aren’t great investors, they’re not even good investors, and they have no interest in learning the normal guidance. That’s why target date funds are so popular in the first place. Planning to retire in 2050, great, pick the 2050 fund, done. Too many people don’t even get that far.