However, one needs to pay attention to the market, and be willing to get out when necessary, and go in when appropriate. Selling everything on March 15, 2000, was a key decision, for example. Of course, I was heavily into the things that had been going up at the time, so that helped also. It is good to be in things with high momentum, so long as that lasts. Building a diversified portfolio will not get you as much profit as picking and switching based on momentum, or relative strength.

You have more control over your IRA. In the 401k, you are limited to the choices offered by the employer and there may be limits on how often you can change your investment choices.