It’s too late for you to worry about the most common 401(k) investment management regret. You know the one I am talking about.
“What do I buy?”
The good news is that that stock market has “bailed you out” over the last few quarters. Provided you with the gift of a recent all-time high 401(k) account balance.
Don’t dislocate your shoulder patting yourself on the back. There is an upcoming 401(k) investment management decision. For your level of investment management genius.
“When do I sell?”
You will not receive the answer to that question in the usual manner. Reading scores of economic commentaries, podcasts, or binge-watching YouTube videos.
None of those usual resources matter. Those experts may be correct. Over the short and long term. But they don’t own the mutual funds you do in your 401(k) account.
No individual 401(k) investor ever improved his or her investment management decisions. Listening to and acting on general economic or stock market news. Not in the past. Not going forward.
Financial experts try to predict general economic, stock market, and interest rate trends. Those predictions cannot manage the stock market risk in the 401(k) mutual funds you own now.
Even if those predictions turn out to be 100% accurate.
401(k) investment management success is not general. It is specific. To your default 401(k) mutual fund menu. And those mutual funds you own now on that menu.
Ask yourself this important question. Before you try a general Google search for your 401(k) mutual fund information.
Is this information helping me manage my stock market risk?
I will bet my 41 years of investment advice experience. The answer will be no. I will hold on to my 25 years of providing individual 401(k) investment advice experience for another bet. If necessary.
Investment advice has to inspire your confidence. It has to make you comfortable with a buy, hold, or sell investment management decision. Try finding that feeling in your usual financial media sources.
Individual 401(k) investment advice needs to be specific. Actionable advice for the 401(k) mutual funds you own now. Or can own at a later date.
Investment advice for your 401(k) should improve your investment management decisions. Identify the stock market risk you are taking right now. And have a plan for a “stop loss” if the stock market takes a meaningful downturn.
Savvy, intelligent people find and use experts. For income taxes, legal matters, and health care decisions. They even call an expert plumber when the kitchen sink backs up.
The best thing you can do now for your 401(k) is to seek expert advice. Independent, third-party, fiduciary level advice. Not affiliated with your company 401(k) sponsor (your company). Or your company 401(k) provider (Schwab, Fidelity, Vanguard, etc.).
Let’s connect for a second opinion on your 401(k) mutual funds. I will not respond as fast as a Google search. But I am more accurate for the 401(k) mutual funds you own now.
And I can provide 401(k) mutual fund information Google never thought about.
Ric Lager
I have spent the last several years trying to figure out the best way to share my 401(k) advice content. I have tried Twitter, Facebook, company web site, and LinkedIn Groups. I now realize nothing beats a well-crafted newsletter delivered to your inbox once a week.
Sign-up here.
Concerned about your 401(k) principal going forward? If so, comment below. Let’s start a conversation. It is very possible to improve your future 401(k) investment management decisions.
