Note: This article is part of Morningstar's May 2016 Risk Management Boot Camp special report. An earlier version appeared Nov. 18, 2014.
A 23-year-old starts a new job. She remembers her parents griping and worrying about their stock investments during the financial crisis, and knows she too would feel terrible if she saw her hard-earned investing dollars go down in value. She decides to steer her 401(k) contributions to the stable-value fund, which seems to be the safest option in her company's plan.
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Christine Benz does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.