How to allocate into "cash" in an employer 401(k) plan?

I'm a new member / user, and I have a question regarding how to follow a plan using my employer's 401(k).

The model recommends I allocate ~16% of my account into Cash holdings. The 401(k) allows be to select from available funds, but does not appear to have a "cash" option. Is this common for 401(k) plans, and how do others allocate into "cash" when a cash option is not available?

Thanks,

Enrique

eamorales asked · 01/12/2011

Re.

#1
Enrique,

Since we don't have individual money market funds data, we generally use CASH to represent that.

In general, funds can be used as CASH are

a). money market funds.

b). stable value funds

c). managed short term investment portfolios.

Hope the above helps.

Thanks,

John
johnz · 01/13/2011 12:43:15

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