You have a 401,000 plan and you don't know how to invest in it. Don't feel bad, few people know how to invest even though they know they have to invest to make progress. Here is your first guide and a simple investment strategy that will work for you year after year.

Your goal as a futile investor is to earn a good return with only moderate risk on your 401k or other retirement plans. This simple investment strategy is designed to do just that in the long run. You can also hire professional advisors for 401k asset allocation via https://www.edwardjones.com/us-en/financial-advisor/tyler-simonds.

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If your plan is typical, most of your investment options are mutual funds. From the safest to the highest risk, they fall into four different categories: money market, bonds, mixed funds and equities. Money market mutual funds are safe and earn interest. Bond funds pay higher interest rates but fluctuate in value, which gives them moderate risk. 

The value of equity funds fluctuates more and more, making them the riskiest; but has high profit (growth) potential. Another investment option, mixed funds, invests in stocks and bonds and is not part of our simple investment strategy.

It is your job to decide where your installments go for each payment period. This is known as asset allocation and is your first consideration. Here's how to invest in a variety of investment options using a simple 2-step investment strategy. 

First, adjust your asset allocation so that half of your installments go to a money market fund for each payment period … or a STABLE PROFILE if your plan has one and pays higher interest. The other half is divided equally between pension funds and funds.