What are the typical investment options available in a 401(k) plan?

The typical investment options available in a 401(k) plan are indeed stocks, bonds, and mutual funds. These options provide a diversified approach to investing, allowing participants to build a retirement portfolio that aligns with their risk tolerance and investment goals.

Stocks represent equity in companies and can offer growth potential, while bonds are fixed-income investments that generally provide more stability and consistent returns. Mutual funds pool money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities, making them an attractive option for those who prefer professional management and diversification.

401(k) plans are designed to cater to a wide range of investment needs and preferences, which is why the inclusion of a variety of asset classes like stocks, bonds, and mutual funds is standard. This helps participants manage risk and achieve a balanced investment strategy for their retirement savings. Other options, such as company stocks, real estate, and precious metals, might be offered in some plans but do not represent the typical or standard choices for most 401(k) participants.