The “buy-and-hold” mindset is to blame.
Generations of 401(k) investors don’t understand.
How to manage 401(K) stock market mutual fund risk.
They completely miss the mark when the stock market’s decline.
They know how to contribute and grow their 401(k) account balance.
But have no idea how to preserve their 401(k) principal.
The traditional “buy-and-hold” 401(k) investment management approach.
Originated in mutual fund Marketing Departments.
Decades ago.
But it’s no longer suitable for today’s volatile stock markets.
If you want to preserve your recent 401(k) stock market gains.
And last few years of personal and company-matching 401(k) contributions.
You need a 401(k) principal preservation strategy.
Beginning with a 401(k) “stop loss.”
A dollar amount or percentage of your 401(k).
If the stock market drops, you “do something” to preserve your 401(k).
A 401(k) “stop loss” will get rid of your worst 401(k) mutual fund.
If a stock market decline takes it away from you.
Adds a money market balance to your 401(k).
Preserves stock market gains. Money to buy better 401(k) mutual funds.
When the stock market decline ends.
Your 401(k) wins both ways!
Open to learning about a 4001(k) “stop loss?”
If so, comment below.
A 401(k) “stop loss” may be just what you need now to protect your 401(k) principal.
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