| The stock market crash of 2008 lost many | | | | These are sure to be your best investment. |
| investors a lot of money, and had many other | | | | Diversify Within Different Assets |
| investors bailing out of stocks for the safety of | | | | Don't put all of your money into stocks, true |
| savings and checking accounts, treasury bills and | | | | diversification is asset class diversification; including |
| gold. However, it is still possible to invest - and | | | | stocks, bonds, commodities, and currencies to |
| yes, even make money - during the current | | | | name a few. |
| rocky economy. | | | | 401k Plan Investment |
| The broad decline across financial markets in the | | | | Here are a few pieces of investment advice |
| past year has persuaded a small but growing | | | | when considering a 401k plan. First, contribute the |
| number of financial experts and advisers to ditch | | | | full $15,500, or deduct 15% of your gross pay, to |
| the traditional buy-and-hold strategy - which | | | | your 401k plan if you can. This is tax free money, |
| promotes long-term investing in a mix of assets - | | | | and it's a no brainer. If you cannot make the full |
| for a new approach that aims to sidestep future | | | | contribution, be sure to at least contribute in an |
| market plunges and ease instability. | | | | amount equal to your companies match. If your |
| What does this mean to the common everyday | | | | company matches 6% and you only contribute |
| investor? Read on for some investment advice | | | | 3%, they will only match 3%. If you are coming |
| that everyone can use. | | | | near the age of retirement and can't afford to |
| Be Informed | | | | lose any more money in your 401k, get out of |
| First and foremost, the best investment advice | | | | stocks funds and move your money to money |
| you'll ever receive is to take control of your own | | | | market. If you are not comfortable investing |
| future. You are the only one who will have your | | | | money into stocks, put it into a money market |
| best interests at heart. Even if you do not | | | | fund within your 401k; the key is not to stop |
| understand exactly how to invest your money or | | | | investing. |
| don't feel comfortable doing it yourself, an | | | | If you are going to manage your 401k assets, |
| investment advice site such as can get you on | | | | make sure you diversify between different asset |
| the right path to getting the right advice and | | | | classes, if possible. Unfortunately, you are typically |
| asking the right questions. | | | | limited to stocks and bonds. If you don't have |
| Take an Active Approach - Buy and Hold is Out | | | | options such as commodities available to you, go |
| A common misconception about the stock | | | | talk to your plan sponsor and push to get some |
| market is to just "ride it out." Don't sell and | | | | more selection. When you leave your company, |
| eventually your stocks will go back up, right? | | | | be sure to transfer your funds to a rollover IRA; |
| Wrong! If a financial advisor suggests that you | | | | you will be able to trade any asset class here. |
| need to take a long term buy and hold approach, | | | | In Summary |
| you should run. They probably don't understand | | | | There is no one size fits all answer to investing |
| how to invest the right way and figure that the | | | | and you're probably not interested in becoming a |
| market will go higher over time. You want to hear | | | | full time money manager. Investment advice is |
| answers suggesting that the investment advice | | | | always easy to come by but good advice is very |
| you will be receiving is based on a sound | | | | hard to come by. The key is to put people |
| understanding of the financial markets; including | | | | around you who have a good track record and |
| concepts such as technical analysis and options | | | | know how to invest with capital preservation in |
| hedging. | | | | mind at all times. Never get involved with people |
| As we learned in 2008, established stocks such as | | | | who promise you the world. Odds are they will do |
| Lehman Brothers and Bear Stearns can go at | | | | well for a while but their ego will eventually blow |
| anytime, so do your research and find out which | | | | up in their face. |
| sectors have the most potential 2-3 years out. | | | | |