Most Minnesotans Ignore their 401(k)’s

401(k) jar

I will not bore you with the intimate details. You did not have the time to read all the academic studies on individual investor behavioral over the last few years.

The conclusions are the same. The majority of individual company 401(k) retirement plan participants are too busy or too scared to make changes to how their retirement money is invested.

The favorite company 401(k) retirement plan account investment management strategy for most individual investors is to ignore it completely.

When the stock market rises to new all-time highs, individual investors can get away with ignoring their company 401(k) retirement plan accounts.  But that investment management strategy does not last over the long term.

History will tell you that stock market declines will eventually follow stock market highs.

Your current stock market mutual funds don’t reflect how much stock market risk you are willing to take now. The last few years of stock market gains are only on paper. You have not yet put those gains away for your retirement years.

It is great to ride the stock market roller coaster up.  We all know that the stock market roller coaster ride down is the scary part.

Take the time now to review exactly what you currently own in your company 401(k) retirement plan account.  A few minutes now could save you tens of thousands of retirement plan dollars during the next great stock market decline.

Ric Lager
Lager & Company, Inc.

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