You’ve watched your 401(k) grow.
The stock market has been on a historic run.
But deep down, you know how this story can go.
In a few weeks, years of hard-earned 401(k) gains.
Poof.
Let’s talk about something most individual 401(k) investors feel.
But rarely say out loud.
The fear of losing what they’ve built in their 401(k).
The stock markets are generous over the years.
But generosity isn’t a guarantee.
If you feel uneasy about your 401(k) mutual fund balance.
You’re human.
In fact, Nobel Prize winners Daniel Kahneman and Amos Tversky proved it:
Losses hurt more than gains feel good.
It’s called Prospect Theory.
And it explains why so many individual investors panic-sell or freeze.
At the first sign of stock market volatility or pending decline.
So what’s the antidote?
A rules-based 401(k) Investment management strategy.
Customized to your specific default 401(k0 mutual funds.
Think of it like a “stop loss” for your 401(k).
• You decide the percentage drop your 401(k) may suffer.
• You decide the 401(k) dollar amount to risk.
• You protect your recent 401(k) stock market gains and contributions.
This isn’t about timing the stock market.
It’s about a plan to protect your 401(k) principal.
Curious about how a personalized 401(k) “stop loss” strategy could work for you?
