It would be a cold telephone call. Or an e-mail sent to your work e-mail address. If I were feeling bold, I would send you a video message on your cell phone.
I would tell you that I am reaching out to you about your 401(k) account. Here is what you would respond.
“I have an investment advisor now. He/she is getting the job done. I am not interested.”
“I am not interested” in the standard response. Any time I reach out to an individual 401(k) investor.
You do not even have to think. Your brain is hard-wired to be “not interested.” With any attempted conversation with a financial advisor.
How would you respond if I asked you a question. One about a big, no good, expensive problem. That I know is going on right now on your company’s default 401(k) mutual fund menu. And that problem is not going away any time soon.
Like the problems (and losses) you took in your 401(k) last year.
I have no idea about your current 401(k) mutual fund holdings. But I do have a copy of your default 401(k) menu. I have ranked the funds using an independent mutual fund ranking database.
I do not sell any products. I am not paid on commissions. I am a fiduciary investment advisor. Only as good as my past investment advice. Provided on your current 401(k) mutual funds.
There are only two things that can happen to your 401(k) in 2023.
One, the stock market finds the bottom. Stock prices start moving up again. Good news for your 401(k) mutual funds, right?
Not so fast. The 401(k) mutual fund you own that lost so much value in 2022, are not the same mutual funds that go straight back up.
Asset classes go in and out of favor. Mutual funds are stock market investments in asset classes.
What is I could help you identify the asset classes that were the best to own in a rising stock market? And which mutual funds on your default 401(k) menu were in those right asset classes?
You might change your response to my cold solicitation.
Individual 401(k) investors tend to provide a “knee jerk” reaction the first time I reach out to them. It is a true shame.
This reaction costs 401(k) investors a great deal of investment return. Each year over their working career.
The answer of “what to buy?” on your default 401(k) mutual fund menu is there. Take your time. Have the patience to finish the conversation. Find out what I know about your 401(k) mutual funds that you do not know.
It does not cost you anything. Except 15-20 more seconds of your attention span.
Ric Lager
Lager & Company, Inc.
