Squeeze the Stone

One thing that your mind will try to tell you is that when you invest money, whether in your retirement account or on your own, you have to keep it safe and sound, that you can’t afford to take risks with it. Wrong. The truth is that you really can’t afford not to take risks. You have to invest this money for growth, especially if you are under the age of fifty. The younger you are, the more aggressive you can be.
As long as you have at least ten years during which you won’t have to touch this money, invest the majority of it for growth.
Put your money in whatever stock or equity mutual funds your 401(k) offers. If you are in a SIMPLE, IRA, SEP, or Keogh, and just want to keep your life as easy as possible, look into good no-load index and managed growth mutual funds. Your investment mix can also include a very small percentage in international growth funds if your company offers it. Over the years, stocks or equities have outperformed every other investment out there—so again, the younger you are, the more aggressive you can be.
When you start approaching retirement, and know that you will soon be living off this money, it’s time to consider easing up on your more aggressive investing. Even so, it’s always best— and perfectly safe and sound—to have a nice mix of funds and keep your money diversified.

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