More on 401(k) Funds

Since I'm going through this process myself, I've been writing articles on eHow and Bukisa about how to properly allocate 401(k) funds. Because I like dealing with money so much, I'm having a lot of fun with all this 401(k) business, but I fear people who aren't very knowledgeable in the area may be confused by my writings. If you read any stuff I write and get confused, please comment!

Pressing on to how to properly allocate 401(k) funds. If you haven't read the above articles, please do. The advice below is supplimental to the advice in those articles.

This article, from Bankrate.com does a better job explaining asset allocation by age than I ever could. Basically, the younger you are, the more risk tolerance you have, so the riskier your investments. You have plenty of time for the markets to make up for any downturns. In the same way, the older you are, the less time you have for the markets to come back from any downturns, and the less risky you want your investments to be.

Did you check your 401(k) yet? Do you know where your money is? All of it? Do you have a good idea of what all the symbols mean? This is your responsibilty. Take advantage of the time you have and the fact that we've got sideways markets right now. Reallocate your assets.

401(K) Check-Up

If you haven't done so recently, it's time to check up on your 401(k). The holidays are over, the market is slowly beginning to stabilize. It's almost time to do your taxes. It's time to take a look at your 401(k) and determine whether you should move some things around a bit. If you decide to leave everything as is, that's fine. Just stop being scared to look at it. You lost money. We all did. Now is the perfect time to take a fresh look and determine what stays, what goes, what gets tweaked.

Now I'm not going to recommend any specific stocks or mutual funds or bond funds. I'm not a stocks expert. My only advice is to look at your retirement savings as unemotionally as you can, at least while you're analyzing how to organize your portfolio. Step back and look at what you've got from a straight numbers perspective. Yes, it's your money. Yes, somebody royally screwed up and made you lose a bunch of money. Yes, you have every right to be beyond pissed about that. But not right now. Right now is time to take a look at things from a mathematical standpoint.

I don't care how scary it is. I don't care who screwed you with your own money. It's still your own money. Your money is your responsibility. No one will ever care about your money more than you will. Do it today. At least start the process. You don't have time not to.