When stock markets get noisy, “what worked before” feels safe.
Past 401(k) mutual fund investment performance offers comfort.
“I’m sticking with what’s always done well in my 401(k).”
“At least I own the mutual funds that did well before.”
“Those mutual funds carried me through the last stock market run.”
None of those thoughts provide an investment management strategy.
To protect your 401(k) principal going forward.
Anchoring to the past investment performance.
Is a dangerous mental and emotional state.
Near all-time stock market levels.
Your 401(k) risk level needs to match the current stock market environment.
War, politics, inflation, oil prices, layoffs, and elections.
It’s not the same stock market environment you lived through.
Your 401(k) investment strategy is no longer about picking mutual funds.
It’s about managing your level of stock market risk.
The safety of your 401(k) principal will not come from yesterday’s winners.
It will come from a stock market risk management strategy.
A 401(k) “stop loss” may be in order now.
A dollar amount or percentage of your current 401(k) value.
If the stock market drops your 401(k) to that level.
A plan is in place to “do something” to protect your 401(k).
Are you sitting on 401(k) mutual funds you are unsure of today?
Let’s connect and I can show you how to protect your 401(k).
P.S. Stock Market volatility tests your 401(k) mutual fund selection process.
