Some people make money investing in 401-k plans consistently, while most make money and then give most of their profits back in a bad market. In 2014, 2015 and beyond, good money management and asset allocation are the keys to investing money in 401-k plans if you want to KEEP the money you've already accumulated in your plan. Here's how to do it.

Investing money in 401-k plans is the key to a successful retirement, but for over a dozen years it's been difficult to make money and KEEP IT. Twice investors have been clipped for 50% or more investing money in 401-k funds. Good money management in 2014, 2015 and beyond and a change in your 401-k asset allocation could help you protect your assets. After all, if you take a 50% loss, you've got to then double your money just to get even.

If your plan is typical you could have a dozen or more options for investing money in your 401-k plan, and all but one or two of these are mutual funds: mostly stock funds and bond funds. Do you know where your money is? Money management is your job if you want to make money over the long term, and step one is to review your 401-k asset allocation (your portfolio) from time to time, at least once a year. If you haven't reviewed your portfolio lately do it now. You might be taking more risk than you think.

Stock funds have outperformed all other options for over 5 years running. This means that if you had about half of your assets in stocks 5 years ago, you've likely got the vast majority of your money there now. And this means that a big decline in the stock market in 2014, 2015 and beyond could severely hurt your plans for retirement. Sometimes it pays to be heavily into stock funds. Other times it's best to be more conservative when investing money in 401-k plans.

If your 401-k asset allocation shows that you are more than 50% invested in stock funds consider cutting back. After 5 very good years, the stock market could be running out of steam. If your plan offers a safe STABLE ACCOUNT that pays interest, take advantage of it. It could pay 3%, 4% or more, and you won't find interest rates like that anywhere else. Remember, investing money in 401-k plans is a long-term proposition and your future retirement income will depend on whether or not you make money investing consistently.

Bond funds need your attention as well. These have been good options for over 30 years because they perform well when interest rates are falling. When rates go up they LOSE money; and in 2014, 2015 and beyond rates are expected to go up after falling for more than 30 years. In other words, bond funds are NOT safe options. If you want to lighten up on risk, your plan likely offers one or two safe options: a stable account and a money market fund.

Consider the stable account first because it will pay a higher interest rate. As for your 401-k asset allocation: equal allocation to a safe option, stock funds and bond funds makes good sense, both for the assets you hold and for new contributions going in from your paycheck. With this asset allocation average investors you can still make money investing in 401-k plans if present trends continue. If the stock market tanks or interest rates rise, money in the safe options will soften the blow.

Investors need to understand that both the economy and market trends change. You can make money investing in 401-k plans over the long term without taking undo risk. The key to success for 2014, 2015 and beyond is good money management and more safety in your 401-k asset allocation. Sometimes it's better to be safe than sorry, and to keep some powder dry in safe options, awaiting future opportunity.

Your 401-K: How to Make Money Investing in 2014, 2015 and Beyond

Your 401-K: How to Make Money Investing in 2014, 2015 and Beyond