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Chapter 2. The Rules: Understanding Your... > Valuation: What Is It and Why Do You... - Pg. 28

The Rules: Understanding Your 401(k) 28 · Description of the investment options · Prospectuses or trust agreements that describe the objectives of the fund, the fund manager, the fund's expenses, the performance history of the fund, and other important information about the investments · Description of all transaction fees associated with the buying and selling of the investments · How, when, and to whom you give investment instructions Plan sponsors who provide you with a choice from at least three different types of investments, allow you to change investments at least quarterly, and tell you that "the plan intends to comply with the Employee Retirement Income Security Act of 1974 (ERISA) Section 404(c)" have just limited the company's liability to you. In other words, don't try suing the company if the stock market drops 1,000 points. After all, it's not the company's fault. Remember, the company's responsibility is to provide a broad selection of investments for you to choose from, not to invest your money for you. That's your job. Warning! Even though you can change your 401(k) investments daily doesn't mean that you should. Changing invest- ments too frequently means that you are trying to time the market, sensing when the market is about to go down or up and selling or buying accordingly. No one has ever consistently called all the ups and downs of the