Over at the Insider Report, expert analyst and former fund manager Ross Givens gave his subscribers some food for thought on 401k adjustments…
But this information is so valuable, I just had to share it with you.
Here’s what Ross had to say:
“For those invested in a company 401k plan, there are several options available if you wish to take advantage of this bear market.
Whichever you choose, you’ll want to consult with your financial advisor first to make sure any action fits in your personal retirement plan.
The first option, and most common, is to do nothing.
There are numerous studies showing that buy-and-hold investors outperform active traders.
Bear markets come and go, but over time, stocks tend to go up.
The second option is to change what you own in your 401k account.
If i had funds in cash or money markets, I would view this as a good time to buy an index fund with those dollars and put them to work.
I would also want to exit any bonds or bond funds I was holding.
Bonds have skyrocketed to levels once thought impossible.
My preference would be to sell, collect the gain, and use the funds to buy an index fund while prices are cheap.
Essentially, my goal would be to get more exposure to stocks.
Prices are cheap, and this is a good time to buy.
Plus, once the market recovers and stocks go back up, an account heavily weighted in equities will grow more quickly and recoup losses much faster than one holding a mix of stocks and bonds.
Again, this is not financial advice.
It’s just what I would do.
Talk to your personal advisor about what is right for you.”
So there you have it — Ross’ take on how to best manage a 401k in this bear market.
Of course, Ross spends most of his time tracking the moves of corporate “insiders,” who somehow always seem to get in at the absolute best times…
So if you’d like to learn more about Ross’ methodology… and how you can get his top 3 stock picks RIGHT NOW…