USN&WR: dollar-cost average is a big advantage of 401(k)

401(k) investors: Suddenly trading out of a long-term strategy is never a good idea. "Be careful about making decisions on what the market did today," says Jeb Graham, a retirement plan consultant at CapTrust Financial Advisors. "The stock market is like a yo-yo." But it pays to double-check to make sure you're well diversified. "If you have too much money in outperforming areas of the market such as small caps and emerging markets, you should be rethinking and bolstering your positions in larger companies," says Altfest. The ability to easily dollar-cost average in a 401(k)--in other words, make regular contributions--is a big advantage of 401(k) plans. That way, you don't have to worry so much about buying high and selling low.