Most people don’t actually know why.
They own the mutual funds in their 401(k).
They picked them once.
Or accepted the default.
Then moved on with life.
When the stock markets are going up, that’s fine.
Now, not so much.
Not a major stock market drop yet.
Enough to make you look at your 401(k) mutual funds.
And realize you’re not sure what you’re looking at.
When you don’t understand what you own in your 401(k).
Stock market declines feels larger.
More personal.
A clearer way to think about a 401(k) mutual fund now:
Ask this question about every 401(k) mutual fund you own now:
“What is the level of stock market risk in this mutual fund?”
Not its past investment performance.
It’s too late to worry about “what to buy.”
It’s time to worry about protecting your 401(k) principal.
Need help with the stock market risk level of a 401(k) mutual fund?
Let’s connect and I can share your specific details.
P.S. If you can’t explain why you own a 401(k) mutual fund. Now is the time.
