Individual 401(k) investors are looking for answers.
What are the best mutual funds now?
Where is the next hot stock market sector?
At this stage of the economic and stock market cycle.
Interest rates poised to go higher.
I am convinced those are the wrong questions to ask.
A timelier 401(k) investment managmeent question:
“What risks am I taking in my 401(k) I don’t understand?”
You already own several years of 401(k) stock market gains.
Accumulated personal and company-matching 401(k) contributions.
It’s time to think about a balance.
Future stock market gains versus current stock market risks.
The largest threat to your 401(k) in the immediate future.
Is the mutual fund stock market risk you don’t know you have.
You can never eliminate stock market risk in your 401(k).
You can have a plan in place to protect your 401(k) principal.
Figure out how much 401(k) loss you can live with.
You don’t need to participate 100%.
In the next stock market downturn.
A dollar amount of your current 401(k) account value.
Or a percentage of your current 401(k) account value.
Most of my individual 401(k) investment advice clients.
Use a 10-20% stock market decline as their 401(k) “stop loss.”
If the stock markets drop their 401(k) account values to that level.
They “do something” to protect their account value.
Managing potential 401(k) account losses is your responsibility.
Ready to know your limit to potential 401(k) account losses?
Let’s connect to calculate your best 401(k) “stop loss.”
P.S. Managing stock market risk should be part of 401(k) investing.
