Spring in Your Minnesota 401(k)

It’s always easy to “buy” a 401(k) mutual fund.

But, never as easy to “sell” the same 401(k) mutual fund.

Think about Spring.

And remember how your garden management skills.

Till the soil.
Plant the seeds.
Water, fertilize, and pull the weeds.

You followed the same steps.
When you picked your 401(k) mutual funds.

I doubt you remember.

Have you pulled the weeds in your 401(k)?

I mean the laggard and loser 401(k) mutual fund you own now.
The ones that dropped more than stock market averages.
And have not recovered in price.

These are your 401(k) mutual fund weeds.
They are choking the growth of your 401(k) account value.

The stock markets have changed seasons.
Or cycles if you think in those economic terms.
You need to do the same with your 401(k) mutual funds.

Own only the best mutual funds available in your 401(k).

Depending on the stock market season. Or cycle.

Set a 401(k) mutual fund “stop loss.”
On each individual mutual fund.
Or your entire 401(k) account value.

Set yourself up to “do something” to preserve your 401(k).

Sell those worst 401(k) mutual fund or funds you own now.
Pull your 401(k) weeds.
Raise cash in your 401(k) account.

To take advantage of the current stock market “sale.”

You don’t have to “sell everything.”
You don’t have to “time the market.”

You should get ready to “rebalance” your 401(k).
A money market balance.
To upgrade your 401(k) mutual fund choices.

Interested in a 401(k) principal preservation strategy?

Ric Lager
Lager & Company, Inc.