You know that investing in your 401k is vital to your continued financial security, but you maybe confused by the myriad of investment choices and options currently available. If find yourself currently in a quandary over how to best invest your 401k, these simple tips can help you to make an intelligent decision, and avoid common investing mistakes.
According to the Washington Post, the average 401k account has around 40% invested in company stock. While this may seem like a safe way to diversify your investments, and express your loyalty to the company, it is important to remember that true diversification involves investment outside of your own corporation, and that the practice of investing heavily in company stock is not always as safe as it seems.
Investment choices made today can dramatically shape your financial outlook in the future. Be sure to educate yourself in all aspects and options of your 401k plan, and meet with your personal financial planner on a regular basis to determine the best course of investment action for you.