Should you continue your “buy-and-hold” 401(k) in a falling stock market?
Part of it depends on your 401(k) investment management strategy.
You have one, right?
If you don’t have one, this topic is even more critical.
Growing your 401(k) is one thing
Easy to do in a rising stock market environment.
Too many individual 401(k) investors.
Never take time to think about the other side of 401(k) investing.
Preserving 401(k) stock market gains.
Enter into your 401(k) investment management strategy.
A 401(k) “stop loss.”
A dollar amount or percentage.
If the stock markets drop your 401(k) account value to that level.
You “do something” in your 401(k).
You sell the worst 401(k) mutual fund or funds you own.
The sale proceeds go into the 401(k) money market fund.
Sorry to be the one to tell you.
But you own at least one or more 401(k) mutual fund you should not own.
These mutual funds have lagged the popular stock market averages.
Clear when you analyze the best mutual fund data.
You should have your 401(k) invested in better mutual funds.
A 401(k) “stop loss” will upgrade your mutual funds.
Sell the worst ones.
Buy the better ones when stock market risk changes.
How do you react when your favorite retailer has sales prices?
On items that are on your wish list.
You have the cash or credit card balance to take advantage.
Of the best sale prices.
The stock market sales has begun.
Have a 401(k) money market balance to take full advantage of the sale prices.
Want to upgrade the quality of your 401(k) mutual funds?
Then let’s get a LinkedIn connection started.
P.S. A 401(k) “stop loss” can improve your long-term investment results.
