Despite the best intentions of friends and family, there are always a couple of holiday gifts that leave you underwhelmed and confused. What on earth was that person thinking?
The same thing can be said for a handful of the mutual funds in your company 401(k) retirement plan account. You currently own some mutual funds that have let you down this investment year.
For sure, 2013 will end up as a great year for the stock market. Any mutual fund that owns the same stocks as the popular stock market averages has been good to you this year.
But most international, sector, and bond mutual funds have disappointed. There are some mutual funds in these categories that have actually lost money in 2013.
This last week of December, you are most likely in an “exchanging frame of mind.” Take that same attitude towards the worst company 401(k) retirement plan mutual funds that you own now.
You have a couple of options with the proceeds from your mutual fund sale. First, you can sit in the safety of the money market account in your company 401(k) retirement plan account. Now may be a great time to protect those investment gains.
Your second option is to put your mutual fund sale proceeds into a better stock mutual fund option on your company 401(k) retirement plan menu. You might already own one of the best funds on that menu. Think about more shares in one of the best mutual funds available to you.
Exchange your bad company 401(k) retirement plan mutual funds for ones that fit you better. Just like the sweater that does not fit you. And the necktie you can’t imagine ever wearing.
Ric Lager
Lager & Company, Inc.
