Employer-sponsored plans allow you to choose from lots of investments to get a mix that's closest to your personal taste. There's no right or wrong mix. You need to combine investments from several asset classes . that's diversification. And, you need to size pie slices to emphasize your personal preference, time frame and risk tolerance . that's asset allocation. Use these steps:

1. Determine what percent of your pie will be devoted to each asset class.
2. Select investments in each of those classes.
3. Monitor and adjust your choices over time.

There are two ways to diversity and allocate assets. Which will it be for you?

Do-it-yourself approach Let a pro do it