How to Invest 401K Money

Video Transcript

"So how do you invest 401K money? First of all, if it's still in the 401K, many times these days there's an online page available to get through the employer's provider, and you can go in there, trade as you would want to, usually a selection of mutual funds from a high risk allocations to low risk, and so you, you can invest while it's in the 401K at your employer quite simply. Now, if the question is, how you invest 401K money once you have left the employer, once you've retired, you can roll the 401K over in to a roll over IRA, and that can be held at a bank, that can be held at brokerage institution, and depending on where you have that money, if it's with a bank, you'll have CD's, money markets, so forth, available to you, maybe some banking instruments. If it's with a brokerage house, you'll have a flurry of secondary market instruments, such as bonds and stocks, etc. So, that is how you would invest your 401K money."