Since you began your working career. All you had to do was contribute money each year to your 401(k). And gain as much company-matching contribution as possible.
You always knew your 401(k) balance would go up. If only by the fact that you and your company added money to the account each year.
Here is the 401(k) investment management challenge you have now.
To preserve your principal.
You can forget rebalancing. Asset allocation too. Along with dollar cost averaging. Academic theories of a time long ago.
I am talking about the target term mutual funds. The one that have dominated 401(k) participant choices over the last few years.
You can’t continue to ignore your 401(k).
The classic 60/40 stock-bond split owns the S&P 500 index and 10-year Treasury notes earned a respectable 15.3% in 2020. It has not worked well since then.
College football started last month. The NFL season kicks off this week. Can I use a football analogy?
Investment professionals have the defense on the field. They are not trying to score points playing offensive investment strategies.
The U.S. stock market averages are near all-time highs. Consider a 401(k) principal preservation strategy.
An independent, third-party mutual fund ranking system. Provided by a fiduciary investment advisor.
You cannot trust your 401(k) retirement plan sponsor (your company). Or your provider (Schwab, Fidelity, etc.) for this information.
Ready? Here is another football analogy.
(At least I waited for football season to begin).
Use the same Fantasy Football process to choose the best 401(k) mutual funds available to you.
You don’t have to “trade” 401(k) mutual funds every week. But you should take a few minutes to check the rankings every few weeks.
Only own the highest ranked 401(k) mutual funds. Using a logical, disciplined, and organized mutual fund ranking system.
Improve your buy-and hold 401(k) investment management strategy. Don’t “guess what to own.” Let a third-party investment advice professional show you what to own.
Need Help With Your 401(k) Investing Strategy?
Are you looking for a complete overhaul of your 401(k)? Need a second opinion from an independent, fiduciary investment advisor? Whatever your 401(k) needs are, I am here to help.
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