401k Update: The Common Mistake Most Investors Make

October 27, 2021

There’s a common mistake most investors make. They buy long term investments and then check on them every day.

The 401k, Simple IRA and Roth investor doesn’t do it. You don’t need to. You’ve done the best thing you can possibly do. Educate, automate, and forget it mate. You’ve taken out a big layer of risk when investing which is market timing, or as I call it trying to outsmart the market. If you know something no one else knows then by all means, go ahead and make your move. Most people who know something no one else knows end up spending time in their state’s 0-star accommodations wearing the same outfit.

For the rest of us who don’t know how to make an algorithm, or have a crystal ball, we leverage the time-tested strategies.

Those of you who are participating in retirement plans are either leveraging a fund that is appropriate to you age (target date funds), or are averaging your purchase prices by investing periodically and automatically. And then…..forgetting about it. Or at least only checking it periodically when you get a notification of a statement. You guys are the ones set up for success. Even in a period like the last quarter that was relatively flat, you may have seen some increase in account values because you added to your contribution. If your company matches then bam, a bigger value.

My point here is this: Even when the markets this quarter don’t give you the same results as the previous quarter, as long as you’ve got your investments in line there’s nothing you need to do. This is where doing less can give you more.

Measure yourself against your benchmarks and see how your quarterly performance compares.

Mick Graham, CPM, AIF

Branch Manager Raymond James

Financial Advisor Melbourne, FL

Mick Graham, CPM®, AIF® Branch Manager Raymond James Financial Advisor Melbourne, FL

Continued Reading

Man wearing suit and tie with mouth taped shut

Shut Up, Powell

There are certain words that when said by certain people at certain times, have the ability to illicit extreme responses. When said by people in

check writing

The Many Benefits of Gifting

Some say selfish…I say damn straight. You should be selfish when giving your money. First, you should be able to decide who, where, and how

Avatar Economics

I’m writing this on Thursday around 10am and I just received the latest Conference Boards LEI index for October, which increased again, and marks a

inflation illustration

Layman’s Inflation

Inflation is when the price of things goes up right?  No. Inflation is when the supply of money is greater than the demand of money.

windshield view while driving

On the Road Again

We are roughly 75% through earnings season and around 80% of companies are beating estimates, which although was somewhat expected is providing comfort to those

Ask Mick a Question

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.