Most individual 401(k) investors ride the stock market rollercoaster.
Hands up during the climb when the view their all-time 401(k) account statements.
White-knuckled during the most recent stock market decline.
Want to step off the ride and protect your 401(k) stock market gains?
You don’t need to time the exact top of a stock market cycle.
You just need to limit 401(k) account losses during the decline.
Here’s how:
* Sell the worst-performing or highest-fee mutual fund in your 401(k).
* Shift the sale proceeds into your 401(k) money market option.
* When the stock market decline ends, reinvest in stronger 401(k) mutual funds.
This isn’t market timing.
It’s raising a 401(k) cash balance.
To buy better 401(k) mutual funds at sale prices.
Simple in theory.
Emotionally hard in practice without a 401(k) “stop loss.”
But it’s one of the best 401(k) investment management moves you can make.
To take full advantage of a stock market decline.
Want an intentional stock market decline strategy for your 401(k)?
P.S. Get a checklist for evaluating your 401(k) mutual funds.
