The 411 on your 401k

Hello Divas!

I’m here to give you the 411 on your 401k money. Listen up!

Now when a diva leaves the house, she always looks good. Friday night I went on a blind date. I spent 3 hours in the beauty salon and forked over $130 getting my hairdo done. I spent another 2 hours and $25 getting my nails and toes done and that’s a deal in New YorkCity. Then I had to decide what to wear. Since this was a first date, I went all out and took a photo of myself in 2 different dresses and emailed it to friends to help decide which dress was best for the date. As every diva knows, it is important to take the time to pull your look together and soliciting feedback from friends helps a lot.

Ladies, the same holds true for your 401k money.

Count it up, I spent at least 6 hours getting ready for one date. However, a successful 401k diva knows its not only about looking good, but knowing your stuff! And the stuff I am talking about is quite possibly the largest investment many of you have — your 401k money.

So here get to it! Here is what I need you to do….

Get to know your 401k statement. Read it, understand it and embrace it divas, it’s not a bill. It’s your future and it’s your money.

Go pull out your most recent statement and see if any of this applies…

• Is most of your money invested in one fund?
• Do you have a significant amount of money invested in your company’s stock?
• Are all the mutual funds you own located in the United States?

If you answered YES to any of these questions then listen closely…

Unless your 401k money is invested in a something called a target retirement fund, then having all or even most of your money in one fund is NOT a good idea. Think about it, what happens if the fund doesn’t do well? Think of it like dating ladies! Until you find Mr. Right, chances are you are going to date several men. When one is not available or acting up, then you call the next guy on your dating list. It’s the same thing with funds. It’s a good idea to have several so if one is underperforming, you have others you can count on!! You have to spread the money to different funds in order to minimize your financial risk.

For those of you investing a significant portion of your money in company stock, I have one word for you Enron– enough said!

And finally, we all love America ladies. But when it comes to your money, you need to go where the action is and there is plenty of action and money to be made in overseas markets. Now do me a favor and take a look at the label on the back of your shirt, skirt and shoes. Check your make up products, the label on your handbag and the manufacturer of the car you drive. We live in a global sociey. Just las large U.S. companies are investing more resources overseas, so should you. Investing in international funds allows you to potentially make money when your u.s. funds are underperforming.

So take a look at your statement right now and see how you are doing. Your future is at stake and the 401k diva is here to help!

And oh about that blind date on Friday, the 6 hours paid off. We had a fabulous time!