It is easy to fall into the financial media talking head trap.
The current stock market rally.
Pressure on The Federal Reserve to lower interest rates soon.
The Trump tariffs are “no big deal.”
The financial media will grab on to any reason they can find.
To promote the upward bias of stock prices.
Congratulations for the great 2025 year in your 401(k) account.
But let’s not forget one thing…
A key 401(k) investment management concept.
Growing your 401(k) is one thing.
Preserving those gains is another.
Take advantage of the last several months of 401(k) gains.
Set a 401(k) “stop loss.”
It starts with identifying the worst 401(k) mutual funds you own now.
The ones you owned that have lagged on the upside.
And gone down more during the stock market declines.
A “stop loss” will help get rid of your worst 401(k) mutual funds.
A dollar amount or percentage.
If that mutual fund price drops to the “stop loss,” you are gone.
Sale proceeds into the 401(k) money market fund.
Safe and ready for the upcoming stock market sale.
If the stock market takes a turn for the worst.
A “stop loss” allows you to “do something” in your 401(k).
To not “give back” the majority of your 2025 year-to-date 401(k) gains.
Even more important to future 401(k) growth…
You will have money to spend in your 401(k).
At or near the next stock market bottom.
Want to upgrade the quality of your 401(k) mutual funds?
Simple. If you know how.
Then let’s get a LinkedIn connection started.
Ric Lager
P.S. A 401(k) “stop loss” can improve your long-term investment results.
