Company 401k plans are notorious for being filled with expensive, sub-par mutual fund options more likely to line your fund provider's pocket than your own.
If this is the case with your plan, you have two equally unpleasant choices: a.
) you can forego the plan completely, forsaking the tax deduction and your future retirement security in the process or b.
) try to make the most of what you've got.
Here are 5 things you can do to make the most of your 401k.

1. Take Full Advantage of your Employer's Match - Not investing up to the full company match is like turning down free money.
   If your employer matches 50% of your contributions up to 6% of your salary, that's like receiving an immediate 50% return on your investment.
   Try getting that somewhere else!
2. Go Cheap - Seek out the the cheapest investment option available and stash the majority of your contributions there.
   Most plans offer at least one or two relatively inexpensive index funds in addition to a slew of over-priced actively-managed funds with little chance of beating the market.
   Stick to the index funds in your 401k and round out your allocation with funds in your IRA or taxable account to achieve your desired asset allocation.
   Studies show that over 70% of actively-managed funds fail to beat the market over the long term and every penny you save on expenses is another penny to compound in your favor over the next few decades.
   
3. Have a Plan - Buying mutual funds without an investment policy and target asset allocation is more like gambling than investing.
   This means deciding how to divide your portfolio between stocks and bonds based on your willingness and ability to take risk and sticking to it through thick and thin.
   For instance, a 25-year-old just starting her career would likely want to keep up to 90% of her retirement portfolio in domestic and foreign stock funds and maybe 10% in bond funds.
   A 55-year-old approaching retirement, however, would probably want a maximum of 60% to 65% of her portfolio in stock funds.
   The important thing is to know your risk tolerance and plan accordingly.
   
4. Rebalance Annually - Most 401k plans have an automatic rebalancing option.
   Use it.
   Annual rebalancing helps you buy low and sell high year in and year out.
   Whenever stocks are cheap, you will automatically buy more of that asset class at lower prices.
   Whenever they are expensive, you will automatically sell stock and buy more bonds.
   
5. Stay the Course - More than anything else, investment success depends on you sticking with your plan in all market conditions.
   If you panic after suffering losses, you will probably end up selling low and locking in your losses.
   Even worse, you will miss out on future gains.
   Once you've made a plan and picked an asset allocation you're comfortable with, it's best to stick with it through thick and thin.