When it comes to 401(k) investing, choose wisely

One of the most daunting decisions faced by workers is how to invest their 401(k) plan dollars.

The simplest choice might be a target-date fund, which automatically shifts from aggressive to more conservative investments the closer you get to retirement.

But some financial advisors say if you have the wherewithal, it's worth building a 401(k) portfolio that provides a more individualized investment approach tailored to your particular goals and life situation.

"If you have the opportunity to take a more precise approach, it's a good thing to do," said Jared Snider, a wealth advisor with Exencial Wealth Advisors. "Sometimes one-size-fits-all ends up not fitting any one individual the best."

As of June 30, 401(k) plans held an estimated $4.4 trillion in assets, according to the Investment Company Institute.

Read more: Data from research firm Morningstar shows that $690 billion of that was parked in target-date funds. (Read More)