Getting Your 401(k) In Shape – Page 8

plan, remember that the contribution levels and investment options must be adjusted, based on your personal savings needs and attitude toward risk.

Remember to rebalance your portfolio occasionally so that the mix of investments you originally chose–the proportions of stocks and bonds in your asset allocation plan–is maintained.

Don’t over manage your 401(k). Even if your employer provides you with Web access to your account and allows you to change your investment options as often as you wish, it’s a bad idea to drop whatever went down yesterday in favor of whatever is going up today.

Focus on the long term. Even if your 401(k) is not performing as well as you’d like today, remember that saving for retirement is a marathon, not a forty-yard dash.

From the book Take on the Street, by Arthur Levitt Â©2002 by Arthur Levitt. Reprinted by arrangement with Pantheon Books a division of Random House Inc. (Log on to www.black enterprise.com to order a copy.)