Most 401(k) mistakes don’t come from bad intentions.
They come from bad assumptions.
Here’s a short list of the worst 401(k) stock market loss assumptions.
“A 401(k) loss is temporary — the market always comes back.”
Truth: The market may recover, but your 401(k) investing career doesn’t.
A 20% loss needs a 25% gain.
To “get back to even.”
It’s math.
The deeper the 401(k) principal loss, the steeper the climb back.
When your 401(k) falls far enough, you’re no longer investing.
You’re rebuilding.
That’s why avoiding big 401(k) drawdowns matters.
More than celebrating big years of 401(k) stock market gains.
There’s a difference between staying invested and staying fully exposed.
A 401(k) “stop loss” may be the answer.
To limit future 401(k)-crushing stock market losses.
A dollar amount or percentage of your 401(k) account value.
If the stock market drops your 401(k) to the “stop loss” level.
You DO SOMETHING to preserve your 401(k) principal.
DISCLAIMER: You can’t successfully “time the market” over the long term.
A 401(k) “stop loss” isn’t market timing.
It’s professional stock market risk management.
Available to any individual 401(k) investor.
Interested in a 401(k) investment management system–
That alerts you to elevated stock market risk levels?
Let’s get a connection started and I can share the details.
Ric Lager
P.S. Protecting 401(k) principal is the best investment strategy now.
