Any Minnesota resident who has added on or built a new home can relate to this experience. That is, you must have a good foundation in order to build on.
The architect or builder that you worked with had a plan. That plan was based on a firm foundation that could support the new structure.
2013 was a great stock market year. One of your main company 401(k) retirement plan investment management strategies for 2014 should be to preserve your 2013 investment gains.
Is your current company 401(k) foundation strong enough to manage what the stock and bond markets have in store for 2014?
Great stock market advances are most likely followed by equally great stock market setbacks. Historically, several years worth of stock market gains can be wiped out in a few short weeks of declines.
The same can be said for bonds. We are currently near all-time low record interest rates. The most likely direction for interest rates is up; and bond prices down.
When your investment principals are challenged, you need to be able to hold steady. Your investment management convictions need to be able to support you.
Early in 2014, make sure that you have an investment management plan in place.
Ric Lager
Lager & Company, Inc.
