Riding the run-up on Wall Street

NEW YORK (CNNMoney.com) -- The stock market hit yet another high last week and analysts attribute this to a number of blue-chip companies reporting higher profits. We're going to tell you how to take advantage of this.

Remember back in February when the Dow tumbled more than 400 points? We were telling you to stay calm. The same applies here. If you're invested in a 401(k), you should be thinking very long term. That means ignore the daily gyrations of the stock market.

You're better off spending your time fixing problems in your 401(k) than you are focusing on how the Wall Street indices are doing. That means checking your asset allocation.

One of the biggest errors investors make is overexposure to a handful of large, domestic stocks. To find out exactly what's in your portfolio, go to Morningstar.com and click on Portfolio X-Ray. It's free.

Remember, you want to cover all your bases here. Don't just look at large cap stocks. Concentrate on a variety of small to mid-size companies, international companies and bonds.

If you left a job, and didn't take your 401(k) with you, you could be leaving money on the table. Roll it into an IRA or into your new job's 401(k). It's much easier to streamline all your retirement accounts than to have them scattered everywhere.

Of course, if you had a great plan at your old place of business, it couldn't hurt to leave it there. Just don't forget about it.

Ok, so you've been doing everything you are supposed to by contributing to your company's 401(k). But these days, even that may not be enough to ensure your retirement. Consider investing in an IRA in addition to your 401(k).

Of course, you'll want to consider IRAs that don't have high account maintenance fees or custodial fees. Check out Vanguard and Fidelity. Fees are generally lower at these companies.

Did you get a raise this year? A sweet bonus? It's a good idea to make a habit of increasing your 401(k) contribution whenever you come into some extra cash.

Contributing the max is one of the most important elements to achieving your retirement goals. Even if you raise your contribution by just 1 to 2 percent, you'll be glad you did later on down the road when all those investment returns add up!