Having a disciplined 401(k) investment process is very important.
Because your 401(k) doesn’t always go up in value.
Every once-in-a-while, the stock markets go down.
Along with it your 401(k) account value.
The last few years of personal 401(k) contributions.
The last few years of company-matching 401(k) contributions.
Allow me to use weight loss as an example.
Most people could stand to lose a few (or more) pounds.
To live a healthier and better life.
The formula is rather simple: burn more calories than you take in.
East less and healthier foods.
Exercise more.
Then why are weight loss products a multi-billion-dollar industry?
Lack of discipline.
Lack of a plan.
Interesting fact. Updated annually at Morningstar.
Mutual fund investment returns are better than investor investment returns.
Investors in a mutual fund. Do worse than the same mutual fund.
Because individual 401(k) investors own the wrong mutual fund in the first place.
And hang on to bad mutual funds too long.
And sell good mutual funds for no reason.
“Buy-and-hold” in your 401(k) solves nothing.
Historically, it makes your 401(k) investment returns worse.
A truly disciplined 401(k) investment management strategy adds value.
Adhering to that disciplined strategy is key in falling stock markets.
No excuses.
A plan to “do something” in your 401(k) when the stock markets fall.
The amount of 401(k) principal loss is under your complete control.
And it is worth much more than the annual cost of the 401(k) investment advice.
Worth looking in to now?
Comment below with your concerns. Or let’s do the LinkedIn connection thing.
Interested in a 401(k) principal preservation strategy?
Then let’s connect on LinkedIn. Or comment below and I can respond.
P.S. There are common sense solutions to preserving your 401(k) principal.
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P.S. You don’t realize you needed a 401(k) “stop loss” until after the fact.
It’s a very expensive lesson for most individual 401(k) investors.
