The current U.S. stock market environment is causing concerns for the most experienced and sophisticated money managers. It is no wonder that the thought of losing the last several years of stock market returns fills individual company 401(k) retirement plan participants with dread.
There are two likely outcomes to the current stock market decline. One, is losing a little of your retirement plan savings once-in-a-while due to stock market noise. Over the last few years these kinds of stock market declines have not lasted very long. Each decline was followed with another new all-time stock market high.
The other possible outcome is a life-changing loss of 25-50%. It has been over nine years since that kind of historical stock market decline. The current stock market environment makes the ladder event more likely to happen than at any time over the last few years.
Have you ever thought you’d be happier if you could just pay someone else to do watch your company 401(k) retirement plan account? Like a lot of other things in life, there is a study that will help you answer that question.
The National Academy of Sciences of the United States of America has studied the topic of, “Buying Time Promotes Happiness.”
The study concluded that spending money to outsource disliked tasks, reported greater overall life satisfaction.
Researchers also found that when people used money to buy more time they were happier than buying more stuff.
There is no reason to feel guilty about paying someone for a task that you could easily do yourself. You don’t work on your own teeth or cut your own hair. Not many people do their own taxes, write their own wills, or repair their own vehicles.
Less sophisticated and time-starved people spend their money wisely on tasks that they realize they are not experienced and qualified to do for themselves.
The current stock market environment is another good reminded that your mental well-being and financial security requires a timely review.
Ric Lager
Lager & Company, Inc.
