You thought picking your 401(k) mutual funds was hard.
Managing those mutual funds in a stock market downturn is even harder.
Ever thought about a “stop Loss” for your 401(k) now?
It’s a pre-set limit on how much you’re willing to lose.
If your 401(k) account value drops to the “stop loss” level.
You “do something” to preserve your 401(k) principal.
In theory, a 401(k) “stop loss” is solid investment strategy.
In practice, most investors struggle to follow through.
Selling a 401(k) mutual fund can be a difficult decision.
Especially in a 401(k) where decisions are long-term.
A “stop loss” strategy is logical, organized, and disciplined.
Human behavior during a stock market decline is none of those.
The fact is that stock markets decline periodically.
That is a feature of 401(k) mutual fund investing.
It’s reasonable to want to protect 401(k) principal.
Years of stock market gains.
Years of personal and company-matching 401(k) contributions.
What good is the upcoming stock market “sale” prices….
If you have little to no money to spend in your 401(k)?
Review your current 401(k) mutual fund ranking.
To make sure it aligns with your comfortable level of stock market risk.
Are you concerned now about one or more of your 401(k) mutual funds?
If so, let’s get a connection started, and I can share the details.
P.S. Long-term 401(k) success depends on avoiding large losses.
