We all want clarity in our 401(k) investment management strategy.
But clarity doesn’t come from chasing investment performance.
Or copying your co-worker’s 401(k) mutual fund picks.
Clarity begins with diagnosis.
Acknowledgment of your real 401(k) mutual fund problems.
Here’s how to begin your 401(k) diagnostic journey:
- Know the stocks in your 401(k) mutual funds
- Know your mutual fund asset classes
- Know when stock market risk levels change
Every 401(k) mutual fund you own has a role.
Like the players on your weekly Fantasy Football team.
• Rank your 401(k) mutual funds by annual cost and performance
• Ask: Who’s adding value? Who’s lagging behind?
Set up a 401(k) “Stop Loss.”
• A dollar amount or percentage of your 401(k) account value.
• If your 401(k) drops to that level, you “do something”
Decide if a 401(k) mutual fund is benched or cut from the team.
Your 401(k) is only as strong as the mutual funds you own now.
And the moves you make to protect your 401(k) principal.
Ready to improve your 401(k) investment management strategy?
P.S. Diagnose what you own.
Understand your 401(k) investment management options.
