William Shakespeare, as everyone knows, is the most famous playwright in history. His plays have been translated into every major living language, and it’s said his works have been studied more than any but the Bible. For centuries, people have loved him for his wit and his wisdom.
Shakespeare never actually wrote about finances. But I’ve found 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 lesson here is having a principal protection game plan in place prior to the next great stock market decline. Interest rates are already rising. Protecting the value of your bond mutual funds should already be a high priority.
It’s easy to have been lulled into procrastination over the last 8-plus years of stock market advance. When your company 401(k) retirement plan account statement seems to go up every quarter, your attention is lost.
The current set of economic, Federal Reserve, and stock market conditions last occurred in late 2006. Eleven years later, most individual company 401(k) retirement plan participants have no memory of the last major financial crisis.
Look around the world when your attention spam permits. There is considerable political and economic uncertainty. The social unrest in the USA is the highest in decades.
You get the idea. Think about being “three hours too soon” now. Put in place a game plan to preserve the last several years of your company 401(k) retirement plan contribution, company-matching contributions, and investment gains.
You will end up with more money set aside for your retirement. And much less stress when the eventual stock market losses begin.
Ric Lager
Lager & Company, Inc.
