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With clouds of anxiety about the stock market and the economy, plan sponsors are being called upon to offer counsel to their employees about their 401(k) plans and the available investments. With apologies to T E. Lawrence, here is my list of the seven pillars of wisdom when it comes to investing for retirement:
Take the time to study your investment options. In the world of investments, ignorance is no excuse. Don't simply focus on returns. Read the materials about the funds and ask questions about what you don't understand. Read prospectuses: they contain important information about fund expenses, goals, strategies, and risks. Make your choices informed choices.
Diversify, diversify,…