For many of us, our 401k is the only resource we are using for retirement. It has also been affected dramatically by the stock market drop. Even though many of you do not even want to open your statements, there are things you can do to fix your 401k and make sure it is on the right track.
Are you close to retirement? There are one-year CDs that are 3% or dividend yielding stock mutual funds around 4%. Even if bond yields are low, start moving your 401k portfolio to a higher percentage of bonds.
Looking for hot funds for your 401k? First make sure you have Large cap, Small cap, International and Bonds. Then you can add emerging markets or REIT funds to the mix. Don’t forget a small portion in stable value and to keep your exposure to your company’s stock fairly low (less than 10%).