The Minnesota 401(k) money market conversation

There is a strong chance of continued stock market volatility over the next few months.

Against this economic backdrop.

It’s no wonder that many 401(k) investors might wonder whether the recent stock market advance is “for real.”

Is it time to think about selling part of your 401(k)?

Will “cash be king” over the next few months?

Sometimes the preservation of your 401(k) principal is more important.

Than trying to grow your 401(k) principal 100% of the time.

The stock and bond markets work on their own timetable.

So do the economy and the Federal Reserve.

Now is the time to make sure you are aware of these important 401(k) principal preservation strategies.

A 401(k) money market balance now can act like a buffer. Safety from a dramatic stock market decline.

You have complete control over the safety of your 401(k) principal.

With any or all of your current account balance.

Money market is never a great long-term 401(k) investment management strategy.

But economic conditions change. Stock markets go through cycles.

Interest rates are beyond the control of individual investors.

Your individual 401(k) risk management circumstances need an update.

There is no sense risking a large part of your recent stock market investment gains.

Along with the last several years of individual and company-matching 401(k) contributions.

Weigh the advantages and disadvantages of building a 401(k) money market balance now.

In the early stages of a potential stock market decline.

Or a stock market decline to more reasonable company valuations.

Are you a saver or investor in your 401(k) account?

Now is a great time for that question. That only you can answer.

401(k) savers hold on for the long-term. True “buy-and-hold” believers.

They believe. Or don’t know any better.

There will be enough money for them to retire. When and at what age they want to retire.

401(k) investors realize the eventual economic, stock market, and interest rate cycles. Every few years.

And they take steps to not “give back” large chunks of their 401(k) account value.

Taking unnecessary 401(k) principal risks is the old way.

The better way is to update your future 401(k) principal preservation strategy.

The sooner you have that conversation with yourself the better.

For your emotional and mental states.

For the sake of your 401(k) principal.

Ric Lager

P.S. If you are concerned about your 401(k) principal now, comment below.

Let’s start a conversation. The preservation of your 401(k) principal is worth a second opinion.