Home

401(k) Investment Strategies

|
|  Updated:  
2016-03-26 20:50:54
RRSPs & TFSAs For Canadians For Dummies
Explore Book
Buy On Amazon

You usually have some say in how the money in your 401(k) retirement account is invested, even if your employer manages the 401(k) account. If you're the sole decision-maker, the following tips on how to invest your funds are even more important:

  • Come up with a plan. Know what you're doing and why: Don't invest blindly, hoping that it'll all come out well in the end.

  • Establish realistic expectations, and then pick funds that have the potential to meet your goals. Learn from others, but build the portfolio that's right for you.

  • Remember that higher risk doesn't guarantee a higher return.

  • Avoid funds that have dramatic up-and-down swings, particularly if you're nearing retirement.

  • Invest in a mix of asset types, because no one knows which investments will be hot at any point in time.

  • Find a professional to help you choose the best investments.

About This Article

This article is from the book: 

About the book author:

Ted Benna is commonly referred to as the “father of 401(k)” because he created and gained IRS approval of the first 401(k) savings plan.

Brenda Watson Newmann began her career as an Associated Press foreign correspondent and later moved to Silicon Valley as Managing Editor at 401k Forum/mPower.