P.S. - I've only enrolled once in 401k at my current employer.
Purpose: To increase returns on your 401k investments without any investing knowledge.
You may ask, how the hell can someone do that? The answer is by sharing your 401k portfolio to the community and of course without showing the actual contribution or total portfolio balance.
Assumptions: Your employer offers 401k plan for all of it's employees and this is for employees who are already enrolled or would be interested in enrolling in future.
How does it work? There are three parts to this....
1) Categories of People: There are 3 categories of people. One - who know nothing about investing, Second - who knows a little bit about investing and are semi active and Third - who are very active in investments in general
2) Sharing: Any type of online medium (see below) will give any and every employee an option to share what funds, bonds, etc. they have chosen in their portfolio, what is their allocation in percentage and what is their return since enrolling in 401k and return in last 3 or 6 months. It's up to the employee as to how they would like to share this details i.e. anonymously or using their name.
Once this is accessible online (private to the organization's employees only), anyone and everyone in the company can read the details and make suitable decisions.
3) Making Decision: Now let's say you found top 5 employee's with highest returns. You can choose two paths from here:
i. Easy approach: Just pick the employee you like the best and change your portfolio to match their portfolio. :)
ii. Not so difficult approach: Among top 5 in the list, you analyze the funds they have invested in, their returns and their reason as to why they have invested in such funds. If you agree with their approach, you can either change your portfolio to match their funds or you can mix and match from among the top 5 and balance your portfolio that way.
So for example, if an EmployeeA is new to 401k and investing world, they can take a baby step and go with the Easy approach. If EmployeeB has done 401k for some time and are looking for a decent change but not too aggressive then they can go with Not so difficult approach and take an easy path i.e. just match the highest return made by an employee i.e. the top candidate. And lets say EmployeeC who would like to be little bit aggressive but also take a safer approach then in that case, they can follow the Not so difficult approach but mix and match funds according to their needs.
I believe in sharing and if there is a way you can help someone achieve higher returns without any compromising then why the hell not. It's a win-win for all.
Online Medium: This can be a subscription based product or a cloud based software that the company pays for and keep their data private to just themselves or even a software built by your IT team as I don't imagine it being anything difficult to create.
Thanks for reading....