You’ve been watching the U. S. stock markets climb for years.
Every headline, every post, every chart says the same thing:
“The stock markets only go up.”
If you believe that, skip the rest of this article.
If you have ever wondered:
“What happens to my 401(k) if the stock markets turn?”
This article is for you.
The individual 401(k) investor who’s done everything right.
But now feels uneasy because the market feels too good to continue forever.
Last month, a client sat across from me and said,
“I’ve never seen my 401(k) this high… and I’ve never been this nervous.”
She wasn’t worried about missing out on future stock market gains.
She worried about losing what took her 20 years to build.
Remember your 401(k) mutual fund managers are 100% invested.
They have to be.
If they hold too much cash they risk losing their job.
Let’s acknowledge reality:
The U.S. stock markets are overvalued, overleveraged, and overly confident.
Historically, that combination doesn’t last forever.
Your 401(k) doesn’t come with a built?in safety mechanism.
Your mutual fund managers won’t do it for you.
A major stock market decline could erase.
Years of 401(k) stock market gains.
Years of personal and company-matching 401(k) contributions
Think about a plan to protect your 401(k) principal.
Consider a 401(k) stop loss.
A predetermined dollar amount or percentage of your 401(k).
If the stock markets drop your account value to that level.
You “do something” to protect your 401(k) principal.
It’s the same logic as home insurance, life insurance, or auto insurance.
You insure everything else that matters.
Your 401(k)—your largest retirement asset—deserves the same protection.
Want help creating a stock market risk?managed “stop loss” for your 401(k)?
Let’s connect to share the strategy.
P.S. Don’t wait too long to protect your 401(k) account value.
