Christopher Carosa, CTFA, ischief contributing 
 editor for, aleading  provider
 of essential news and information,blunt commentary 
 and practical examples forERISA/401(k) fiduciaries, 
individual trustees and professional fiduciaries.

Are you familiar with the concept of anchoring and how it produces bad behavior in401(k) plans? Here's the idea: People get stuck on the first thingthey see. You've no doubt heard “first impressions are lastingimpressions.” That's anchoring.

People take the first thing they see and make all future decisions based on how they relate tothat first thing they saw. If the second car you see costs $40,000,it'll seem high if the first car you saw was selling for $25,000.On the other hand, that same $40,000 vehicle would seem like asteal if the first car you saw was instead selling for $65,000.What you see first influences everything you see next.

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Christopher Carosa

Chris Carosa has been writing a weekly article and monthly column for BenefitsPRO online and BenefitsPRO Magazine since 2011 and is a nationally recognized award-winning writer, researcher and speaker. He’s written seven books, including From Cradle to Retire: The Child IRA; Hey! What’s My Number? – How to Increase the Odds You Will Retire in Comfort; A Pizza The Action: Everything I Ever Learned About Business I Learned By Working in a Pizza Stand at the Erie County Fair; and the widely acclaimed 401(k) Fiduciary Solutions. Carosa is also Chief Contributing Editor of the authoritative trade journal and publisher of the Mendon-Honeoye Falls-Lima Sentinel, a weekly community newspaper he founded in 1989. Currently serving as President of the National Society of Newspaper Columnists and with more than 1,000 articles published in various publications, he appears regularly in the national media. A “parallel” entrepreneur, he actively runs a handful of businesses, including a small boutique investment adviser, providing hands-on experience for his writing. A trained astrophysicist, he also holds an MBA and has been designated a Certified Trust and Financial Advisor. Share your thoughts and story ideas with him through Facebook ( Twitter (