401k Plans: Which Assets To Invest In

There are many ways to get information advice about investing, free or for a fee - each of which should be used with caution - particularly if the advisor has a financial stake in your decision.

Experience indicates that the most informed advice tailored to your situation is likely to come from a financial planner, preferably one who is certified and works on a fee basis. While you will pay for the advice, a certified planner is ethically bound to look at how any investment advice he or she gives you fits in with your overall financial situation. Even more importantly, such a person has the necessary knowledge and experience Preferably look for a planner with intimate knowledge of the ins and outs of living with, or after successful treatment of, a chronic or life challenging condition.

Options include:

• Newspaper articles. In addition to current articles, you can access older articles on line such as from the New York Times (www.nytimes.com ) or the Wall Street Journal (www.wsj.com ). Look for basic advice instead of trends.
• Consumer magazines such as KIPLINGER'S PERSONAL FINANCE, and MONEY. Likewise, look for basic advice.
• Technical publications such as MORNINGSTAR or VALUE-LINE. Technical publications can be costly and difficult to understand.
• A financial advisor (also known as a stockbroker). Caution: even though your stockbroker can't earn commission on funds in your 401K, his or her advice might still be skewed toward the products with which he or she is most familiar.
• Your bank. Caution: a banker's advice may be more generic than personalized unless you keep a lot of money in the bank.
• Discussions with family, friends or relatives who are experts in the subject. Beware of talking with people close to you who have more advice than expertise.
• Your employer's human resources department. Employers can now provide specific, retirement investment advice although they are not required to do so. Keep in mind that employers are generally not liable if the advice doesn't work out. Caution is particularly advisable if the employer recommends its own stocks or bonds.
• Financial Websites such as www.morningstar.com (click on "Personal Finance" then on "401(k)s). Even if all you use is a site's calculators, it will help you make reasoned forecasts based on estimates of future earnings on your investments.
• A financial planner (If you don't have a financial planner, see: How To Choose A Financial Planner).

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