What steps can be taken to mitigate risks in a 401k investment strategy?

Implement automatic rebalancing to maintain target asset allocations as markets fluctuate. This disciplined approach prevents portfolios from becoming inadvertently risk-heavy over time.

Consider offering target-date or lifecycle funds that automatically adjust risk levels as participants approach retirement. These funds provide best practices for investment strategies without requiring sophisticated financial knowledge.

Establish investment policy statements that clearly define objectives, risk tolerance, and review processes. These documents provide valuable guidance during market turbulence and prevent emotional decision-making.

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