“Set it and forget it.”
Sounds like a reasonable 401(k) investment management strategy.
But over time, here’s the danger.
It turns into a “don’t look at it” 401(k).
Over time, individual investors who disengage.
Often lose a clear sense of what they actually own in their 401(k).
This isn’t a problem of action.
It’s a problem of orientation.
You don’t need to adjust your 401(k) mutual funds often.
But you do need to know the stocks in those mutual funds.
Not react to every news headline.
Wars, inflation, politics, gas prices, or layoffs.
Awareness of how your current 401(k) mutual funds react.
To up and down stock market trends.
If you own a 401(k) mutual fund now:
That lags when the stock market averages trend higher.
That falls at a faster rate when the stock market averages trend lower.
You need to understand why you still own that mutual fund.
Or even more important..
Why you should not own that mutual fund.
Need a second opinion on any 401(k) mutual fund you own now?
If so, let’s get a connection set up here.
P.S. All-time stock market highs need 401(k) mutual fund diligence.
