Time For A 401(k) Makeover?

April 9, 2008
By seadmin

This market is still in bear mode, so why not get a handle on your most important money now, before the next bull market run?

I say right now is as good a time as any to treat yourself to a 401(k) makeover.

Here are a few simple steps to manage your 401(k) in a bear market. This advice holds true for virtually every investor, including those very aggressive types itching to go all in.

1) Know your current equity allocation

I know it sounds simple, but just being aware of how much exposure you have to equities is the first step in your new 401(k) look.

2) Know your "safe harbor" choices.

In this market, you must be aware of the money market account options you have, and the short- and long-term Treasury bond funds you own. These are great safe harbor choices for your money when market seas get really choppy.

3) Don’t have too much international exposure.

We’ve seen a big pullback in international equities, and this trend could continue for some time. Reduce your exposure to international equities until things settle down.

4) Reduce your overall exposure to equities.

Hey, there is nothing wrong with having a heavy cash position right now. By doing so, you won’t lose money, and you won’t be subjecting your capital to any sharp downturns. When the market stabilizes, you’ll be ready to rock and roll.

Want more tips on how to manage your 401(k) assets? Then you need my Successful Investing advisory service. Our 401(k) allocations have sidestepped the bear’s claws since the beginning of 2008, and thus we’ve eluded any damage to our portfolio.

Find out how you can get your detailed 401(k) makeover with Successful Investing by clicking here.

Log In

Forgot Password