Your North American Tariff 401(k)

Today is the day. He really did mean it about tariffs.

25 percent tariff on goods from Mexico and Canada.
10 percent tariff on goods from China.

Suddenly, inflation, unemployment, and interest rates don’t matter.

What about all-time stock market indices highs?

You don’t need an Economics degree. Or an MBA.

North America is a highly integrated trading system.

Canada and Mexico, and the United States.
Canada and Mexico are the largest United States trading partners.

Each highly dependent on the other.
Components for the same products shipped across the borders.
Many times to complete the manufacturing process.

You absolutely need to know how tariffs will affect your 401(k) mutual funds.

Let’s apply a little common economic sense. And focus your attention.

Do you think U.S. stock prices might drop due to tariffs?

Along with the share prices of your 401(k) mutual funds?

Higher prices for imported goods.
Lower price margins for exported goods.

Both events lower U.S. company earnings.
And their stock prices.

Huge potential damage to U.S. company stock prices.

Tariffs might pose a risk to your recent 401(k) stock market gains.
And the last few years of personal and company-matching 401(k) contributions.

It’s time to think about a 401(k) principal preservation strategy.

I use a “stop loss” for all my individual 401(k) advice clients.

A plan to “do something” in their 401(k). If the stock market changes direction.

A 401(k) “stop loss” can be a dollar amount or percentage.
If your 401(k) account falls to either level, you act.

Limits downside risk. Pre-determines future 401(k) losses.

Sells the worst 401(k) mutual funds you own now.
Proceeds to the safety of your 401(k) money market account.

Ready to buy better 401(k) mutual funds when the stock market figures things out.

Or when common economic and trade sense prevails.

Navigate your way around any potential tariff problem in your 401(k).

It’s not hard. You need a 401(k) “stop loss.”

Who ever thought we would miss NAFTA?

Ric Lager
Lager & Company, Inc.

Interested in a 401(k) “stop loss” strategy now?

If so, comment below.

P.S. A “stop loss” strategy may sound scary at first.

Once you use it in your 401(k), you will always use it in your 401(k).