Most Individual 401(k) investors don’t realize.
How much harder it is to recover 401(k) losses.
Than it is to avoid them in the first place.
A big 401(k) loss requires an even bigger gain.
To “get back to even.”
Here’s a simple scenario in real numbers:
• You have $500,000 in your 401(k).
• The market drops 20%.
• Your 401(k) balance becomes $400,000.
To recover, you now need a 25% gain to return to $500,000.
That’s the part most 401(k) investors never see.
I help my individual 401(k) advice clients set a “stop loss.”
To position their 401(k) accounts before major stock market downturns.
Not “timing the market.”
Reducing 401(k) principal exposure as stock market risk rises.
When the stock market falls:
• Their 401(k) losses limited to a pre-set dollar amount or percentage.
• Their 401(k) builds a cash balance to buy best mutual funds at lower prices.
This isn’t prediction.
It’s professional stock market risk management.
It’s not “Can you recover from a 401(k) loss?”
It’s “Do you need to experience a major 401(k) loss in the first place?”
Interest in how a “stop loss” would work in your 401(k) now?
Let’s connect on and I can share your personalized numbers.
P.S. Avoiding a major 401(k) loss is often more powerful than stock market gains.
