Money Matters Mastery

🚢 Happy Saturday everyone! This week, I am taking a vacation floating around and lying in the sun aboard the amazing Oasis of the Seas! As I float around, I started thinking about all the 401k/403b plans that are floating around too!

💼 Did you know that you have direct control over your 401k? When you are at your current job, any 401k or 403b plan will be kept by that employer until you initiate a ‘rollover.’ This causes many to forget about their previous 401k plans.

🔍 Most Americans have a large portion of their net-worth tied up in deferred compensation plans (401k/403b), therefore it is crucial that you track this money and ensure it is being managed by someone you know and trust. This could be your current employer’s 401k, or a licensed financial advisor, either way it is crucial to know where your 401k plan is, otherwise it is floating in the vast open ocean! There, your 401k is working against you rather than for you! Do you know where your 401k/403b is?

💬 If you're changing jobs or have old 401(k) accounts lying dormant, let's discuss your options. I'm here to guide you through the process, answer your questions, and ensure your retirement plans remain on track!

📈 Savers should resist the temptation to constantly check their 401(k) balances, even during a bull market. Behavioral economists warn that the quick thrill of seeing a larger balance can lead to risky decision-making with money. Studies show that investors who frequently check their accounts tend to make suboptimal choices, feeling every market fluctuation and potentially harming their long-term financial security.

📉 Surprisingly, the danger of checking intensifies during good times, as investors may chase higher returns and become overexposed to stocks. The use of mobile devices exacerbates the urge to check frequently, lowering long-term returns. While only a small percentage of people actually make trades based on account checks, the stress of daily market volatility can still take a toll.

📅 To protect yourself from this emotional roller coaster, consider setting a schedule for checking your 401(k) balance. Limiting the frequency of checks can help you avoid unnecessary stress and maintain a more balanced perspective on your financial goals.

Working with a licensed investment fiduciary will help you stick to a long-term investment plan. This will help you to stay on track with your investments and reduce financial stress of short-term market fluctuations.

Interested in hearing more?
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Why a Bull Market Is a Bad Time to Check Your 401(k)

Why a Bull Market Is a Bad Time to Check Your 401(k) Your balance is likely up, but there are reasons to resist the urge to peek at your retirement savings.