I am an individual 401(k) investment advisor. Advising clients in all industries.
In all levels of business and economic education and sophistication.
There is one thing that my 401(k) advice clients have in common.
They’re always thinking about the growth and safety of their 401(k).
My 401(k) advice clients know what is going on in their 401(k) mutual funds.
They don’t like surprises.
The like to be the “smartest person in the room” about their 401(k) options.
They have a 401(k) investment management strategy.
For up and down stock market environments.
Recent tariff headlines are cause for your 401(k) concern.
President-elect Donald Trump has been very clear he’s raising tariffs immediately.
Trump had authority to impose tariffs before. He might follow through this time.
The numbers vary. Depending on when and where quoted.
I have seen Chinese import tariffs up to 60 percent.
Across-the-board tariffs of up to 10 percent on all other U.S. imports.
The details and percentages are not important.
You absolutely need to know how tariffs will affect your 401(k) mutual funds.
I don’t need to see a copy of your Economics degree. Or your MBA.
Let’s apply a little common economic sense. And focus your attention.
Do you think U.S. stock prices might drop due to tariffs?
Along with the share prices of your 401(k) mutual funds?
Consider what might happen if U.S. trading partners retaliate.
Mexico and Canada are the largest U.S. trading partners.
What happens to U.S. stock prices if they get dragged into the tariff mess?
Higher prices for imported goods. Lower price margins for exported goods.
Both events lower U.S. company earnings. And their stock prices.
Now do you see the potential damage to U.S. company stock prices?
Any level of tariffs might pose a risk to your recent 401(k) stock market gains.
And the last few years of personal and company-matching 401(k) contributions.
Two months or so before Trump takes office again.
It’s time to think about a 401(k) principal preservation strategy.
I use a “stop loss” for all my individual 401(k) advice clients.
A plan to “do something” in their 401(k). If the stock market changes direction.
A 401(k) “stop loss” can be a dollar amount or percentage.
If your 401(k) account falls to either level, you act.
Limits downside risk. Pre-determines future 401(k) losses.
Sells the worst 401(k) mutual funds you own now.
Proceeds to the safety of your 401(k) money market account.
Ready to buy better 401(k) mutual funds when the stock market figures things out.
Or when common economic and trade sense prevails.
Navigate your way around any potential tariff problem in your 401(k).
It’s not hard. You need a 401(k) “stop loss.”
Interested in a 401(k) “stop loss” strategy now?
If so, comment below. Or let’s connect on LinkedIn.
P.S. A “stop loss” strategy may sound scary at first. Once you use it in your 401(k), you will always use it in your 401(k).
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