Time to learn from past Minnesota 401(k) mistakes

I see this all the time. Individual investors with the best of intentions. To take more control of their 401(k) investment management decisions.

The historic no good 401(k) investment returns from 2022 should now have your full attention.

Year-end 401(k) statement were a wake-up call for many. Losing large chunks of 401(k) principal tends to have that effect.

I don’t hear the “I don’t have time” excuse as much anymore. Individual investors have finally acknowledged the following fact. That is, they need to find more time to manage their 401(k) risk. With both stocks and bonds. At least a few times a year.

One look at their current 401(k) mutual funds is all I need.

Why work so hard? And continue to go backwards in your largest retirement nest egg.

Your 401(k) is not practice money. The preservation of principal is going to be a large part of the timing of your retirement. And the comfort of your retirement.

There is no perfect time to take more control of your 401(k). You will never be more ready. Or more intelligent. Or more confident.

You do not need to fear making a bad investment management decision. At the risk of sounding like a total jerk, let me ask you the following question.

How have your past 401(k) mutual fund choices turned out lately? We both know the answer. And we both know there is room for improvement.

I understand you do not have an interest in managing your 401(k). You might avoid all investment and financial management activities in your life. I have plenty of clients who fall into that category.

I do know that you can find help. To preserve and recover your 401(k) going forward. I help individual investors with this goal in mind every day.

In 2022, we had the worst stock and bond market investment returns since 2008-2009. Now is a great time to improve your current 401(k) mutual fund holdings. And establish a stock and bond market risk management strategy going forward.

Your 401(k) is now in a “back is against the wall” moment. You need to make 401(k) investment management decisions now. That will last the rest of your working career.

Your new 401(k) investment management goal should start with information. Independent, third-party, fiduciary level advice. Not from your 401(k) sponsor (your company). Not from your 401(k) provider (Fidelity, Schwab, Empower, etc.).

Your goal is to get a second opinion on your default 401(k) mutual fund menu. And on your current 401(k) mutual fund holdings.

Look at how much money you lost in your 401(k) last year. Your 401(k) management procrastination was an expensive lesson.

I hope this blog post can provide you even a little bit of confidence.

You do not have repeat your past 401(k) mistakes. Improving your future 401(k) investment management decisions. Cannot come from repeating you past behaviors.

A better 401(k) going forward can only come from doing something different. That starts by taking more advantage of the resources available.

You will not fail. You will learn. Your confidence in your 401(k) choices will grow.

You have already made the 401(k) mistakes. It is time to learn and improve.

Ric Lager
Lager & Company, Inc.

I have spent the last several years trying to figure out the best way to share my 401(k) advice content. I have tried Twitter, Facebook, company web site, and LinkedIn Groups. I now realize nothing beats a well-crafted newsletter delivered to your inbox once a week. Sign-up here.