This section introduces you to some basic investment concepts and general information related to making investment decisions, whether it be for money inside a retirement plan, such as an IRA or 401(k), or for money outside a retirement plan. When you sign up for a 401(k) plan, you choose from among investment vehicles offered by the plan. Which vehicles you choose should be partly dictated by your age.

If you are age 35 or younger and have started to build your retirement nest egg, time will enable you to take advantage of investment vehicles with long-term growth potential. You will have the ability to ride out the market's peaks and valleys, and take advantage of growth potential.

If you started saving for retirement towards the middle of your working life, or are age 35 to age 50, you can easily enjoy a middle of the road strategy with your retirement investments. You can strike a comfortable balance between growth funds and fixed-income funds to work toward your goal.

If you are currently age 50 or older, it's time to get more conservative. Concentrate on preserving your capital. Less risky investments will be less likely to drop in value.