TAG's 401(k) Enrollments Start Today

Over the past dozen years, I've done a LOT of 401(k) enrollment meetings. The question I get asked the most is: "What should I invest in?" The cartoon above is a fine explanation regarding my usual answer. I tell people to DIVERSIFY...because you can never be sure which investments will be going up...and which will be going down. Maddeningly, they all seem to go different directions at different times. Which is why it's important to be spread out your cash into growth stocks, value stocks, large company stocks, small company stocks, and foreign stocks. Why it's important to have some in bonds, and some in cash equivalents (short-term bonds). Most 401(k) plans -- and ours is no exception -- make it easy to diversify by offering all kinds of asset allocation funds where they make the hard decisions for you. But please invest in something, because the government bribes you with tax breaks to tuck money away, and if you're not independently wealthy, it's a good idea to take advantage of every carrot the government waves in front of your nose.