Investing has two parts: investing and growth. You want a good financial investment for your 401k plan but how do you know what a good financial investment is?
For 401k advice like that, start by talking to the financial advisor who is assigned to your 401k plan.
The 401k plan advisor can usually help you recognize a good investment; although the economic crisis has actually changed what a good financial investment looks like.
Before the economic turmoil, any stock or mutual fund that you chose for your 401k account usually increased in value with little work on your part.
So most stocks, bonds and mutual funds appeared to be good investments. This made most investors feel confident in the market. Most account values were growing rapidly enough to bring about that confidence. And why not, 401k account values rarely decreased.
Well now with the economy and the markets in shambles a lot of 401k investors are confused about what a good financial investment is; how much they should invest; should they buy or sell. We have had mini market corrections, but not enough of an upward swing to bring back total investor confidence.