Out of all the emails I get from the readers of this blog around 25% are about 401k. Everyone is in search of a simple solution which will give them high returns and at the same time it will avoid bearish phases. They are looking for a simple pill which they can swallow and presto they will be good 401k investors.
There are no miracle pills that can do this for you. But if you are serious about your 401k investment and unhappy about your returns, what you can do is educate yourself, learn the choices and design a better approach which gives you better control and returns.
Beginning next week for next 6 weeks I will focus on 401K on the members site detailing how you can approach 401K investing.The focus of the six week efforts would be for participants to develop their own 401 investing approach based on their current situation and knowledge level.
The most critical thing you must learn if you want to be successful 401k investor is that you must design a approach. If the approach is logical and well thought out then you are in control of your own destiny.
The market might do its own thing and it is not a controllable variable, but everything else I can do is controllable. For example how much to contribute, which fund to buy, when to buy, when to exit in under my control. If you concentrate your energies on controllable factors then end result would be profit.
If you do that you will not be a lost sheep all the time asking question "what do I do now" . That is the essence of developing a method.
After all the motto of Stockbee site is "Methods Trump Markets".