Most 401(k) investors don’t fear the next market crash.
They fear losing the 401(k) stock market gains they’ve spent years building.
Along with years of personal and company-matching contributions.
And right now — with the U.S. stock market near all?time highs.
Those fears are completely rational.
I have individual 401(k) advice clients with the same fears now.
They are not asking for economic or stock market predictions.
They don’t need the next hot stock market sector.
They want to protect their 401(k) account balance.
And limit and future losses.
How do you protect your 401(k) stock market gains and contributions?
Pay attention to the current stock market highs.
Not a signal to panic.
A signal to put in place a 401(k) principal preservation strategy.
Ask yourself this timely question now:
“How much of my 401(k) account balance am I willing to lose from here?”
Not in theory.
In dollars.
Or a percent of the account value.
If your 401(k) drops to that level, you don’t “think about it.”
You reduce 401(k) stock market risk.
By selling the worst mutual fund you own.
And moving that part of your 401(k) to the money market option.
I use this 401(k) “stop loss” strategy will all my investment advice clients.
Building your 401(k) balance over the years is the hard part.
Now you only need to protect your 401(k) principal.
Want a simple breakdown of the 401(k) “stop loss” strategy?
Let’s connect and I will share the details.
P.S. Most people don’t know their 401(k) has built?in tools for risk control.
