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Employee Benefits Security Administration
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Investing And Diversification

The Pension Protection Act of 2006 directed the Department of Labor to provide plan participants and beneficiaries sources of information on investing and diversification.

Many employees have the ability to choose or direct their investments in their workplace retirement plans. For example, many people who participate in a 401(k) plan choose where the money in their individual accounts is invested among the plan’s options. The Department of Labor has a number of publications that provide information on various types of investments typically offered in 401(k) and other employer retirement plans, as well as information on the importance of diversification.

The Department’s publication, Savings Fitness: A Guide to Your Money and Your Financial Future, provides an overview of how to include retirement savings in your overall financial plan. The chapter on Strengthening Your Fitness Plan, pages 13–17, describes different types of investments and explains how diversifying investments can reduce investment risk. This publication is available in English and Spanish.

Taking the Mystery Out of Retirement Planning is designed to assist individuals who are within 10 years of retirement plan their finances. Chapter 2, pages 9–11, provides information on investing and diversification. In addition, A Look at 401(k) Plan Fees includes descriptions of different types of investments typically offered through 401(k) plans.

Other Information On Investing And Diversification