The Consumer Boomer posted a very good article last week called Things to Avoid Investing in Your 401K to Prevent Delaying Your Retirement.

He suggests 4 investments that can devastate your 401(k):

1. Too Much Company Stock

This is perhaps where I see people make their biggest mistake. You just have to think about Enron to know why. Some plans don’t give employees enough choice. This is one place to talk to your HR department and get other alternatives.

2. Today’s “Hot” Tip

Hot tips are almost always financial disasters. Ignore them, no matter how plausible.

3. Commodities and Currencies

These investments are generally very volatile. You certainly don’t want to be making Forex or currency futures investments unless you REALLY know what you’re doing (and even then, I’d be exceptionally careful).  This is certainly not for beginners.

However, the only place I disagree with the author of this article is that investing in some gold — and only with a small part of your 401(k) — is a good, conservative hedge.

You can find out more about how investing in gold compares to investing in stocks here.

Don’t invest in rare gold coins, gold-mining stocks or gold futures — that’s way too risky. But solid gold ETFs can be a simple way to provide an inflation hedge to your 401(k).

4. Real Estate

I’m definitely not a fan of real estate investing right now. However, even if you want to invest in real estate, your 401(k) is probably not the best way to do this. For example, you can’t deduct depreciation, which puts your real estate investing at a significant disadvantage.  If you want to invest in real estate, I suggest you do it outside your 401(k).

So what do you think? What other advice do you have for retirement investing? Let us know by commenting below.