How can I follow your recommendations with my 401(k) plan?

The most important contributor to investment performance is your asset allocation. Usually it is more important to be in the right type of fund than in a specific fund. So you can follow my recommendations by using whatever funds your 401(k) allows in each category. If your 401(k) does not offer consistently good funds or doesn’t offer funds in each category, decide which are the best and worst offerings in the plan and invest in the best. For example, if your 401(k) plan offers good U.S. stock funds but bad or no bond and international stock funds, do most of your U.S. stock investing through the 401(k) plan. Invest in the other assets outside the 401(k) plan. An alternative available in many plans is a broker window. This allows you to pay an extra fee and invest in almost any fund or other investment through a brokerage account at a broker selected by the plan sponsor. Many 401(k) offerings are so bad that you’re better off paying the extra fees to get in different funds.