5 Most Common 401(k) Mistakes.

From Jim Cramer's "Stay Mad For Life".

The Five Most Common 401(k) Mistakes:

1. The most popular 401(k) investment is your employer's stock. Don't ever buy any.

2. The second most popular 401(k) investment is different versions of the stable-value fund. Avoid these unless you're close to retirement.

3. Most 401(k) investors assume that the mix of funds offered in their plan is representative of the mix of actual investments in the market and a good proxy for diversification. Don't be confused.

4. When people leave their jobs, for whatever reason, most choose to cash out of their 401(k) plan or leave their plan alone and pay higher fees to maintain the old 401(k) with their old employer. Both of these decisions are bad.

5. Increasingly, workers are falling victim to automatic enrollment in 401(k) plans, which come with a terrible set of default investments. Pay attention to where your money's going and allocate your assets yourself.