Don't Micromanage Your 401(k)

You have two options when it comes to your 401(k). You can either move the money into different investment options in response to economic conditions, or you can adopt a strategy appropriate to your age and risk tolerance and then stay for the long-haul. Investing for retirement is meant to be a long-term vehicle, not something that you change every time the market takes a turn for the worst.

The best advice is to find a plan that you’re comfortable with and stick to it. If you start to get antsy, then you need to reevaluate your risk tolerance and go from there. The problem with trying to time the market is that it bounces around quite a bit. While past indicators are a good sign of things to come, they’re not necessarily what will happen.

Tell us, are you one that gets uncomfortable and likes to shift your 401(k) around? Has it worked for you, or been more of a hindrance? [CNN Money]