Use Your Head Fo' Something More Than a Hat Rack!

You've done everything right.

You were a good kid that listened to his or her mom and dad. You got great grades and elementary and high school was a breeze. You made your parents proud and recieved a full ride to college. You were a stand out student and ranked in the top 5% of your graduating class. You've always known what you've wanted and that was a post graduate degree---done no problem.

Now you're getting job offers out the whazoo! $85, 90, 100K to start. You picked the perfect job, they move you, throw in a company car. You're off to a fantastic start!

Now it's your first day of work, time for a brief orientation. You shake hands, you're welcomed aboard, everyones impressed with you and your guided to Human Resources for paperwork.

Your first major decision in your new profession is not a 125 page competitive analysis of a Chinese company in Singapore. It's choosing what mutual funds to place in your new 401K account.

A decision that can and will affect the rest of your life.

You close your eyes and take a deep breath and make your decisions the same way you did when you had no clue of what the answer was.

You PICK C!

Or in this case, every third mutual fund.

Now some of you laugh but I can't tell you the number of stories I've been told of how well-educated young professionals decide to pick investments for their 401K's.

So if you're clueless, it's okay. It is what it is but what are your options?

In the words of a young woman about to make this decision with no idea of what funds to choose.

"...I could feel the HR Director becoming impatient. So I just filled in the circles. I didn't want her to think I was stupid."

You've done everything right your whole life, how could you screw this up?

The fact is you don't have to decide immediately. An HR Director friend of mine says, "Most corporations will give you up to two weeks to decide, so take your time. Call a financial advisor."

He's absolutely right. Many advisors would love to help and establish a relationship with a possible new client. Give it a shot, you'll be surprised.

So listen to your parents, get good grades and get the perfect job. And when it comes to deciding what funds to choose for your 401K, as my Granny would say,

"Use your head fo' something other than a hat rack!"