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:
” Everything you process is based on Perception and perception is based on the data you are feed. Alter the perception and you alter the outcome. How do you even know how you even see the right picture? If all the information that you are being provided with is manipulated, that means the picture you are creating with this data is also illusory in nature. This is the tool that Wall Street employs with impunity; they use it all the time to create boom and bust cycles. The masters of data manipulation, however, is our lovely Federal Reserve system and the Bureau of Labor Statistics. “ Perception Wars; You see what you are directed to see
Random thoughts on 401 Losing Money
It also helps to make a distinction between market volatility and a market crash. You should expect market volatility. It is normal. You should also expect market crashes, although they occur less frequently than normal volatility. To avoid a market crash in a way that leaves you in a better place than riding it out requires you to be able to foresee both the peak of the market, so you can sell at that time, and the bottom, so you can buy back in. Not even the most educated and highly paid professional investment managers in the country can consistently do this. If you try to time the market the odds are you’ll cause more harm to your long-term success than good. Rather than timing the market, it’s better to have put the money you need in the next five to 10 years in safer options. That way you don’t have to worry about the month-to-month ups and downs of the stock portion. 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 masters in some other field does not make you an expert when it comes to the markets. As stated above, monkeys with darts outperform most experts when it comes to 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 viewed as 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
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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 and 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 very adept at deflating a nation’s currency while maintaining the illusion all is well. This is achieved by subsidising key industries, using a basket of goods that (and the sectors these goods originate from are usually the one’s receiving massive subsidies) paint a false picture regarding inflation and most importantly, they control the media. Let’s briefly look at some of these subjects today. Fiat Currency: Instruments of Mass Destruction
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