A very common individual 401(k) investment management problem.
So, here is the solution…
It helps to start at the end of the story.
You own the wrong mutual funds in your 401(k).
(There, I said it. But I don’t feel better).
Technology stocks are powering the recent record-setting rally on Wall Street.
These U.S. mega-cap stocks are leading the way.
But many household name stocks are well below their previous highs.
That divergence has cost your 401(k) a great deal of money.
A timely question for your 401(k) mutual funds now.
How many tech stocks do you own in your 401(k) mutual funds?
The U.S. stock markets are telling you “what to buy” in your 401(k).
Are you listening?
Sure your 401(k) is “up” for the year.
But has it increased in value as much as the U.S. stock market averages?
Your 401(k) account value is growing.
Because you and your company are adding contributions.
Think for a moment about your 401(k) mutual fund investment returns.
You are taking all the stock market risks in your 401(k).
But are you receiving the investment returns for those risks?
Now, look at the other side of 401(k) stock market risk.
Not IF the stock markets drop.
WHEN the stock markets drop.
The future downside risk from current all-time stock market highs is real.
That 401(k) principal risk has to be managed the right way.
All-time stock market highs are always great.
So are all-time 401(k) account value highs.
Don’t “give it all back” in the next stock market decline!
401(k) principal risk is always present.
The key is managing it near the top of a stock market cycle.
Want to know if you own the right 401(k) mutual funds now?
P.S. A “second opinion” on your 401(k) wouldn’t hurt right about now.
