- Paul Fokken
How Aggressive Should I Be With My 401(k)/403(b)/457/TSP?
Submitted and written by Paul Fokken
Financial Investors are often posed with the dilemma of when to be aggressive when it comes to one’s own 401(k). It can get nerve racking and the answer is, it depends.
In past years probably people would just be more aggressive and you were at the mercy of the market but it seemed like the market wasn’t as reactive as it is today so a buy and hold strategy would work. However, today, you can lose substantial amounts especially if you are not reacting to market trends. 20 years ago it didn’t matter as much but today one tweet, one bad trade deal, one health scare and the market gets twitchy… so when and how can you be aggressive???
The answer is when you get help and have professional people that can manage your 401(k) for you. By that I mean those that are getting help quarterly. Think about with your current 401(k) you are probably still contributing to it so when the market is down you have the ability to buy more and when the market is trending higher your account is increasing.
When your account is professionally managed with 401(k) Maneuver you have actual real people that are there working for you and putting you in the investments you should be in at current market conditions. However, if you are in target date fund or you don’t make decisions on your own or soon enough, your account may really suffer.
So one of the best ways out there is today is to get your 401(k) professionally managed. That way you can be aggressive and even if you are near retirement, why take not advantage of the upswings of the market when it is favorable and capture more of it?
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