Here’s my best effort.
For a strategic wake-up call for 401(k) investors riding high.
Thinking the historic stock markets gains will last forever.
Truth is, I have no idea on the short-term or long-term stock market direction.
Even more truth:
My individual 401(k) investment advice clients are not worried.
About preserving their recent all-time high 401(k) account balance.
They will be the first to admit.
401(k) stock market gains aren’t guaranteed.
A strategy to preserve the largest part of those gains is the best plan.
That is where a 401(k) “stop loss” comes in handy.
A dollar amount or percentage of your current 401(k) account value.
If the stock market drops your 401(k) account value to the “stop loss.”
You “do something.”
Sell all or part of the worst 401(k) mutual funds you own now.
Proceeds go to the safety of the money market account.
You have a 401(k) money market balance for the next stock market “sale.”
Even better, you can upgrade the quality of your next 401(k) mutual fund picks.
Do you have a plan in place to protect your 401(k) going forward?
If not, a simple LinkedIn connection can get you started. Let’s go.
P.S. What’s your biggest fear about preserving 401(k) stock market gains?
