Technology is everywhere in 2022. You can turn on your dishwasher via your cell phone from your kid’s soccer game. You can take a picture of the inside of your refrigerator. And send it to your cell phone while you are in the grocery store.
Retirement plan participants do not understand. Today’s investment management technology improves 401(k) decisions.
Investment management technology adds value to your 401(k). You can preserve your 401(k) principal in the initial stages of a stock market decline.
Has the next great stock market decline may have already begun? I do not have the answer and do not care about the timing.
Here is a more important fact. 401(k) participants can choose not to fully participate in the decline.
“Buy-and-hold” is a lousy, underperforming, expensive lesson to learn 401(k). Like you did in the last great stock market decline.
Independent, third-party investment advice is available for your 401(k). You do not have to “buy-and-hope” ever again. You can preserve the last several years of 401(k) retirement plan stock market gains.
No individual investor wants to lose double-digits amounts of 401(k) account principal. Hoping that you will eventually recover. In time for your retirement several years from now.
Your future 401(k) stock market losses can be managed now. You can fix your stock market risk management problem today.
Let us say that you wreck your car and suffer severe injuries. A year from now you will have a new car and be fully recovered from your injuries. But if you could avoid the accident and injuries in the first place, would not that be the better option?
The financial media tells you it is fine to sit through the next great stock market correction. Asset allocation, diversification, and buy-and-hold will eventually work out for you.
Do not worry. Eventually, you will recover all your stock market losses. Years later you will “get back to even” on your 401(k) retirement plan account balance.
I say nonsense. Why would anyone do that? You only have a few years in your working career to add to your 401(k) retirement plan account. And gain the company-matching contributions
Find an investment advisor for your 401(k). He or she can help you put a 401(k) retirement principal preservation plan in place now.
The best way to survive the current stock market decline is to not fully participate in the first place.
Ric Lager
Lager & Company, Inc.
