Retirement Investing "Dos" and "Don'ts"
Do set clear investment goals for yourself. This will make tracking and evaluating your retirement savings plan easier. Your goals should be realistic, appropriate, time-specific, measurable, and interesting.
Don't expose yourself to unnecessary risk. Asset allocation can help you spread your investments and minimize your overall risk exposure.
Do consider making regular contributions to your retirement plan. Investing a set amount each month helps you avoid trying to "time the market." *
Do consider increasing your contribution rate each year (even by as little as 1%) when you have an increase in your salary. **
Don't take early distributions. Early distributions may be subject to early withdrawal penalties, plus federal income taxes.
Don't take a loan unless you've considered your other options. Even though you repay your account with interest, the time that your loan is active is time that a portion of your retirement savings is unable to work toward helping you achieve your long-term financial goals.
Do consider talking to a professional advisor. He or she can help turn these "dos" and "don'ts" into a retirement investment strategy that is right for you