You have seen the headlines.
The stock and bond market risk levels have changed.
Even if you don’t pay attention to financial markets every day.
Take a good look at the mutual funds you own now in your 401(k).
First look at the annual fees and expenses.
Are you receiving the investment returns you are paying for?
Maybe a more important question now:
Are you losing more money in your 401(k) than necessary?
Second, look at the annual investment performance.
The 401(k) mutual funds you own now.
Are they falling at a faster rate than the popular stock market averages?
It is not likely all your current 401(k) mutual funds will pass these tests.
But there is one last most important test.
Would you buy that same 401(k) mutual fund now?
If you can’t find a reason for buying that mutual fund now.
There is no reason to hold on to it.
You wouldn’t buy your 401(k) mutual fund at the current price.
Higher expenses. Poor investment performance. Too much stock market risk.
Why add more personal and company-matching 401(k) contributions?
To the same 401(k) mutual fund you would not buy now.
Sometimes you own the wrong 401(k) mutual fund.
It doesn’t make you a bad person.
Be honest with yourself.
Make the necessary 401(k) investment management adjustments.
Because the stock market risk levels have changed.
And your 401(k) needs your attention now.
Sell the worst company 401(k) mutual fund you own now.
Place the proceeds in the safety of the money market account.
Set a “stop loss.”
A percentage of your 401(k) account value.
You are not willing to risk going forward.
Have some money to spend in your 401(k).
When the stock market is “on sale.”
To buy the best 401(k) mutual funds available to you at that time.
The worse 401(k) investment management decision is to “buy and hold.”
To continue to lose retirement plan account principal value.
Full participation in the current stock market crash is silly.
Don’t make the same 401(k) investment management mistakes again.
Now you can learn from past mistakes.
A logical, disciplined and unemotional 401(k) “stop loss.”
The best 401(k) investment management strategy now.
P.S. There is no need to continue to guess with your 401(k) mutual funds.
All you need is a second opinion. You deserve it.
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