Why 401(k) Mutual Funds Drift and Risk Rises

Picking your 401(k) mutual funds.
Thought to be a one-time decision.

Guessing “what to buy?”
The stock market goes up for years.
What’s to worry about?

The stock market has other ideas.

The structure of your 401(k) mutual funds.
Is overweighted in Large Cap technology stocks.

No fault of yours.
401(k) mutual fund managers have to own what is going up.
Technology and AI have been the leaders for a long time.

Likely you own at least one mutual fund.
Overexposed to AI and technology stocks.

Stock market risk in your 401(k) mutual funds now.
No longer reflects a comfortable level.

Review each 401(k) mutual fund you own now.
The top ten stock holdings.
The stock market sector exposure.

Does the mutual fund stock market risk still fit?

So, you have three options now…

Rebalance.
Guess.
Rank your 401(k) mutual funds.

Ranking your default 401(k) mutual funds.
Shows you which mutual funds to leave alone.
Where your 401(k) principal is most at risk.

Want to find out where your 401(k) mutual funds rank?

Let’s connect on and I can share the details.

Ric Lager

P.S. Keep your 401(k) mutual fund stock market risk visible.