[aynyc]

Not completely as typical 401K investor would change their allocations from equity to non-equity.

[kortilla]

No, the typical 401k investor does not change their allocations.

[theandrewbailey]

Target-date retirement funds automatically do.

[kortilla]

Only when you’re getting close to the target retirement date. Even those funds benefit from downturns early to mid-career.

[adastra22]

And even these days the typical investor probably uses a financial advisor, who would do such fund reallocation, even if they don't use target date funds explicitly (which they should).

[FooBarBizBazz]

Do they really? When I've looked around at financial advisors they've wanted at least several percent annually of AUM, which, to my mind, is just insane.

[adastra22]

I agree. I don’t use them myself. There are few-only financial advisors though, which are all I’d recommend people use.

I’m just saying financial advisors are common. Not that they should be.

[nonethewiser]

For this hypothetical, I don't think it makes sense to consider anything but a typical 401k investor that only invests in the sp500. Thats all that we're tracking here.