Don't "do nothing" with your Minnesota 401(k)

Coming up on three years ago, I read an article on the CBS News web site about the biggest money worries most Americans have. I fortunately saved the article. Here is the key take-away.

Even in normal times, 65% of Americans lose sleep over their finances.

As you know, these are not normal times. The coronavirus pandemic has upended daily life for most people in this country. It brought a swift and sudden end to the longest-running bull market in history.

The stock markets have recovered somewhat in the past few weeks. But they have done that before, only to fall to even lower levels. Volatility will likely continue, at least for the short term.

And with millions of people working from home or dealing with layoffs, I imagine the percentage of Americans losing sleep over their finances is much higher than 65%.

Investment advisors are paid to keep their clients confident in their financial future. How are you supposed to remain confident when the overriding message from the financial services industry right now is to “do nothing.”

Doing nothing has not helped during this pandemic. Most Americans have sheltered in place or stayed home. By all accounts, that behavior has stopped the spread of the COVID-19 virus.

If we had followed a “do nothing” strategy, our lives and financial health would very likely be much worse now. If you can image that!

Of course, no one has control over when this pandemic will end or when normalcy will return to the markets. Your worries — financial or otherwise — will not disappear with the snap of your fingers.

Your March 31st quarterly statements will arrive next week. You most likely have more time to devote to personal finances now that you are homebound.

If there’s something that’s keeping you awake at night about your 401(k) account, reach out to a trusted investment advice professional. In a ten-minute phone conversation, or e-mail exchange, you can work to help alleviate those concerns.

Again, no one can make the stock markets go up or personally fix the economy. But there are local resources available that can provide you with an independent, third-party, fiduciary level analysis of your entire company 401(k) retirement plan mutual fund menu.

You might just need a ranking of your company 401(k) retirement plan mutual funds. That information would include helpful hints on “what to buy” and “when to sell” any of the mutual funds you currently own.

Sooner or later, but hopefully sooner, all this will be over. Life will go on. A stock market recovery will happen. It’s important to take steps now to preserve as much of your company 401(k) retirement plan principal as possible.

And most importantly, stay healthy and safe!

Ric Lager
Lager & Company, Inc.