l have a 401k that l know nothing about (in terms on how to change my strategy and stuff) but have been contributing (10% each paycheck) for about 4 yrs now and my balance is near 7,000.Is there a way l can change or reallocate my money so my balance stops going down/minus?Next, l only have a checkings account?l wanna start a savings for my future.What is the ideal way to go about doing this?I am getting married next year so l basically l wanna save for a house/family and stuff...

Instead of a regular savings account put your money into a money market account. It is the same as savings (you still have access) but it has a much higher interest rate (between 4-5%) Your 401k, l would not take out.you would be penalized big time for withdrawing early.you can roll it into a new account though.

Talk to your HR department if you have one, or your boss if you don't. Most 401K plans have several options for you to invest in and you can switch your money from one to another - there is usually a limit on how many times a year you can change.

Open a savings account or money market accound and start putting some money into it regularly. When you get some accumulated, move it to a CD or to some other investment like mutual funds.

This is an excellent time to start figuring out about ur financial future.

1. Make sure u stay out of debt. Pay ur credit cards off every month. If u have credit card debt.pay it off.

2. Have an emergency savings account (out of the stock market) of 3 - 6 months living expenses (whatever u feel comfortable with) & only touch in in case of dire emergency. The idea is that u do NOT want to have to pull out ur investments when the market is down like it is now.

3. Do not have kids until u can afford them. (!!!!!)

4. If anyone depends on ur income & would be in trouble if u died, get low-cost term insurance.

5. (Finally, we get to investing). The market is DOWN now & u r going to see some loss in ur investments. You r young.ride it out. BUT this is an excellent time to figure out ur risk tolerance. This site has links to several risk tolerance quizzes:

http://saveyournestegg.com/diy.html

After u figure out ur risk tolerance, figure out an asset allocation based on ur risk tolerance. It is NOT hard & the same site will help you. But try to keep ur investing costs low. That may be hard in a 401k because, although people do not realize it, 401k is can have very high fees. Try to find out all ur fees. If u can get into index funds, do that.

At ur age, u can afford to take risk & do not be too concerned about ur losses now, The market will rebound. You just want to understand what u r invested in & why. You want to have exposure to bonds, foreign stocks & domestic stocks at least. Your risk tolerance leading to ur asset allocation will tell u how much of each to hold. For example, u may want 20% in bonds, 30% in foreign & 60% in domestic. Your portfolio could be this simple:

20% Vanguard Total Bond Market Index
30% Vanguard Total International Stock Market Index
50% Vanguard Total Stock Market Index

Do NOT use a 'financial advisor'!!!

http://saveyournestegg.com/scam.html