401k

I talked to a friend last night (I won't say his name for privacy purposes), but we talked about how to allocate a 401k.  The best way to allocate a 401k is to spread your investments in all allocations.  I allocate my 401k differently because i've done this for several years already and i'm familiar with the changes and trends of the US markets.  But, if you are just getting started it you should start with a different approach.  You should "diversify".  It is written on every book about investing and any financial adviser will tell you the same.  When you diversify, you are spreading your investments on safe and risk accounts.  A typical 401k breaks down like this:

Safer: Money Market Accounts:

Safer with little risk: Bonds, Fixed, Mortgage

Medium: Balanced allocations, Large Caps

High: Small Caps

Higher risk: International, Emerging markets

So, you need to spread them out on all of them.  You will make and loose money, but that's how you start.  You will never make money without loosing.  I had a -2% on one of my accounts YTD one time.  This year i have 20% YTD already on that same account.  I've watched my 401k account since, who knows 2001 i think.  I've seen my account in ups and downs many times.  But no more.  After all this years, i can manage to get positive gains YTD.  Last year, i got around 13% YTD on my 401k.  This year is up 16.5% YTD.  My plan this year is to pull a 30% + if possible on my 401k.  We'll see.  I will post more stuff later and how to do it.  Because, know one will tell you when you should take your money out or put you money in when the US rocks or goes to recession.  Did anyone tell you when to sell your house before the housing market broke down in 2008-2009?   

Let me suggest some stuff to get you started.  I had read them and i recommend them to you.

Real Money by Jim Cramer

5 Waves to Financial Freedom by Ramki Ramakrishnan

Read your 401k allocations and call them.  It's free to talk to your 401k advisers.  

Watch Mad Money

Will post more stuff later.