In the past couple of weeks, you have most likely received your company 401(k) retirement plan account statement dated June 30, 2019. Equally likely is the fact that you have never had so much money in your 401(k) before.
If you have not had time to review your most recent statement, not to worry. Access your company 401(k) account online. There is a good chance the balance is even higher yesterday than on June 30th.
Congratulations on making so much money! What is your plan to keep it?
William Shakespeare is arguably the most famous playwright in history. His plays have been translated into every major living language. His works have been studied more than any but the Bible. For centuries, people have been moved by his wit and his wisdom.
Shakespeare never actually wrote about finances. But many of his lines contain important financial lessons. One particular quote comes to mind now with the current all-time high stock and bond market valuations.
“Better three hours too soon than a minute too late.”
The Merry Wives of Windsor, Act 2, Scene 2
In this scene, a jealous husband is planning to take revenge on another man who intends to seduce his wife. He resolves to start early rather than wait for the eventual to take place.
The company 401(k) retirement plan investment management lesson here is having a principal protection game plan in place prior to the next great stock market decline. Record low interest rates and record high stock market levels will not last forever.
It’s easy to have been lulled into procrastination and inattention over the last 10-plus years of stock market advance and interest rate decline. When your company 401(k) retirement plan account statement seems to go up every quarter, you don’t need to pay close attention.
Look around the world when your time permits. There is considerable economic uncertainty. The economies of multiple foreign countries are beginning to slow down dramatically. Political unrest in the United States is the highest in decades.
You get the idea. Think about being “three hours too soon” regarding your company 401(k) account. The last several years of your company 401(k) retirement plan contribution, company-matching contributions, and investment gains are sure to be at risk sometime in the near future.
Setting a “stop loss” from your current record company 401(k) retirement plan account balance will assure you more money set aside for your retirement. And much less stress when the eventual stock and bond market losses begin.
Ric Lager
Lager & Company, Inc.
