Your 401k retirement plan sends out periodic statements...or allows you to log in and look at the account.  I hope you monitor on a regular basis!

You'll probably see a summary of the investments and a "pie chart."  The pie chart shows the ratio of stocks, bonds and cash in your plan- the asset allocation.  The asset allocation is important.  If you're a long way from retirement the stock ratio should be higher...if you're closer to retirement stock ratios need to be scaled back.  And it's important to monitor the amount of company stock in your plan.

Here’s a suggestion: If company stock represents more than 50% of the total value of your 401(k) plan, you’re probably taking too much risk.  Diversifying into other investments within your 401(k) plan, like mutual funds that hold a portfolio of stocks and bonds, you can immediately cut risk. Make some adjustments!