Don't be wedded to a particular fund just because you're a long-term investor. But keep in mind that even good funds can be swept into a downdraft because a whole category is out of favor. But Benna cautions that long-term cumulative returns don't always tell the whole story, because one outstanding year can skew the results. Instead, look at a fund's performance year by year and quarter by quarter over the long term so you can see how it has done in good and bad times. Keep company stock holdings in check.
Many employers give matching contributions only in company stock.
That amount can grow even more if you elect to invest some of your own contributions into company stock. That way you won't be vulnerable to big losses if the stock tanks. If you're near retirement, however, check with an accountant before you sell company stock. You may be able to take advantage of an IRS rule that bases taxes on the price of the stock when the company bought it for your account. It's a mistake to try to time the market.