5 Things This December for Your 401(k)

Everyone in Minnesota gets busy in December. All attention is focused on the holidays at the end of the month.  It is easy to forget about your personal finances.

Use any down time that you may have this month to catch up on your company 401(k) company retirement plan account. Here is a list of five things to make sure that you are aware of now in regard to your retirement money.

First, remind yourself that  the stock markets don’t watch the calendar. It has taken several years to reach all-time stock market highs. Those gains can disappear in a few short weeks. Give some thought to your next investment management move when the stock market direction changes.

Second, your company 401(k) retirement plan account is going to have a great 2013. Even the worst mutual funds that you own are near all-time high prices. Now is a great time to sell your worst performing mutual funds and lock in your 2013 investment gains.

Next, use the proceeds from your mutual funds sales to buy the better-performing mutual funds on your company 401(k) retirement plan menu. Log on to your company 401(k) retirement plan web site. Find the best mutual fund options available. Figure out when you are comfortable buying those better mutual funds.

Fourth, find out if your company 401(k) retirement plan offers the SDBA account option. SDBA is a self-directed brokerage account within your company 401(k) retirement plan account. This account allows you to buy stocks, ETF’s, and an expanded list of mutual funds.  The SDBA option is the cheapest and fastest way to solve a bad company 401(k) retirement plan menu problem.

Last, decide not to fully participate in the next great stock market decline. This is by far the most important investment management decision that you can make this December. Make sure that your 2013 stock market gains go with you in to 2014.

Ric Lager
Lager & Company, Inc.