I am tired of useless information provided to individual 401(k) participants.
There is only so much attention span available.
How can a 401(k) investor decide what information is helpful?
To improve his or her mutual fund investment management decisions?
Here is my best idea. Don’t pay much attention to generalized, commoditized investment advice.
Instead, seek out content specific to your default 401(k) menu of mutual funds.
Quarterly earnings, election polls, market information, and politics.
Provided nonstop on all your electronic devices. Intended to capture your short attention spans.
Never relevant to the specific steps required for 401(k) investment management decisions.
Seek this type of investment advice instead. From an independent, third-party, fiduciary level investment advisor.
With an established history of providing investment advice to individual 401(k) participants.
A ranking of mutual fund asset classes.
The asset classes populated by the mutual funds on your default company 401(k) mutual fund menu.
Mutual fund asset classes ranked. By investment performance.
Default 401(k) mutual fund ranked. By annual costs and investment performance.
Think “Fantasy Football.” Like you pick the best players.
A logical, organized, and disciplined system.
To help identify the best 401(k) mutual fund on your default 401(k) menu.
Rankings will help answer the age-old, “what to buy?” in your 401(k).
Don’t ever forget about the other important question.
“When do I sell?”
When the economic, stock market, and interest rate conditions change. Very much like they are likely to do soon.
Establish a 401(k) principal preservation strategy.
Best done by establishing a “stop loss” level for each 401(k) mutual fund you own. Or for the value of your entire 401(k) account.
When the “stop loss” level arrives, you are gone.
No emotions or “thinking about it.”
Sell that worst 401(k) mutual fund. And the proceeds go into the safety of the money market account.
You “live to fight another day” with your 401(k) principal.
When the stock market environment improves. You can always reinvest in a better 401(k) mutual fund than the one you sold.
It’s not that hard. It’s a simple plan.
I would not have survived over 41 years in the investment advice business if it were hard.
A long list of individual 401(k) investment advice clients follow these simple steps.
P.S. I may have finally figured it out. Nothing beats a well-crafted newsletter delivered to your inbox once a week. With independent, fiduciary-level content specific to your 401(k) investment management decisions.
If you like this content, hit reply, and start a conversation. Or sign-up here.
