Editor: Vladimir Rothstein | Tactical Investor
401K Losing money is only part of the problem
The bigger problem is that most Americans are not saving enough even if their 401K’s are not losing money. Most 401K’s lose money because the individual has not taken the time to educate themselves. They assume some random guru is going to help them turn their savings into a small fortune. Welcome to the real world; monkeys with darts are better stock pickers than most financial advisors.
Before we get to the main article we would like to present you with a small video and a brief excerpt of an article that we think makes for a compelling read:
“Your entire perception is built upon the data you receive and process. Altering that perception can have a profound impact on the outcomes you experience. However, it raises the question of how you can ensure that you are perceiving the truth. If the information you are presented with is manipulated or distorted, the picture you construct from that data becomes illusory as well. This manipulation of information is a tool commonly employed by Wall Street, allowing them to create cycles of economic booms and busts. The Federal Reserve system and the Bureau of Labor Statistics are particularly skilled in manipulating data to serve their purposes. It is essential to be aware of these dynamics and exercise caution when interpreting and relying on the information provided to us. “ Perception Wars; You see what you are directed to see
Random thoughts on 401 Losing Money
Differentiating between market volatility and a market crash is crucial. Market volatility is a normal occurrence and should be expected, whereas market crashes happen less frequently but can be more severe. Successfully navigating a market crash and emerging in a better position requires the ability to predict both the market’s peak to sell and its bottom to buy back in. Even highly educated and well-paid investment managers struggle to consistently achieve this. Attempting to time the market often results in more harm than good, jeopardizing long-term success. Instead, it is advisable to allocate the funds needed for the next five to 10 years into safer investment options. This approach alleviates concerns about the short-term fluctuations of the stock market and promotes a more stable financial outlook. Full Story
Why is your 401K Losing money
For one, there is churn and burn; investors think they are too smart when in fact, they are not. Just because you have a PhD or a master’s in some other field does not make you an expert in the markets. As stated above, monkeys with darts outperform most experts when picking the right stocks.
The best way to ensure that your 401K does not lose money is to purchase when the market lets out a nice dose of steam, and the trend is up. Over the long term, stock market crashes should be considered buying opportunities. If you follow this simple plan you can start off small and end up rich
401K losing money; maybe the real question should be. Is a 401K a good investment
You might find this article to be of interest
We are entering a new paradigm; get used to forever QE, though it will be given other names along the journey to make it appear more palatable. The US and by default, worldwide debt is set to soar to preposterous levels; if a national debt of almost $22 trillion is shocking to some, imagine how they will feel when the debt soars to $100 trillion. Market Update Feb 28, 2019
If you shook your head vigorously when you read the above statement, print it, put it somewhere you can easily access, and then review it a few years from today. You will be unpleasantly surprised to see how much the situation has changed; the masses are not paying any attention to the national debt.
Central bankers have become highly skilled at devaluing a country’s currency while simultaneously creating the perception that everything is functioning smoothly. They achieve this by providing substantial subsidies to influential industries. These subsidies are often directed towards specific sectors that are then included in the basket of goods used to measure inflation. As a result, the reported inflation rate may present a false and misleading picture. Furthermore, central bankers exercise significant control over the media, allowing them to shape public opinion and maintain the illusion of stability. It is crucial to examine and discuss these subjects to gain a better understanding of their implications. Fiat Currency: Instruments of Mass Destruction
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