Let me stop you right here. I’m not going to share with you some “can’t lose” market timing or trading system.
Instead, I want to share with you this important tidbit about your 401(k). If you take it seriously, it will have a far greater impact on your long-term investing returns than anything you learn in a trading seminar.
You might not know this, but I’m a regular W2 employee at Dent Research.
My publisher is more like a partner than a boss, but I get paid every two weeks via a good, old-fashioned paycheck (technically a direct deposit, if you want to split hairs).
As an employee, I get the same basic 401(k) plan that you do, with the same very conventional menu of mutual funds. The mutual funds available limit my investment returns, but as I’ve consistently emphasized in my work, the investment returns are only part of your total effective returns.
And in my book, they’re the least significant part.
Vastly more important to your long-term financial health are the tax breaks and employer matching.
I talk about this exact topic in a video I recorded recently.
Disclaimer: This material is provided for informational purposes only, as of the date hereof, and is subject to change without notice. This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities nor is it intended to be investment advice. You should speak to a financial advisor before attempting to implement any of the strategies discussed in this material. There is risk in any investment in traded securities, and all investment strategies discussed in this material have the possibility of loss. Past performance is no guarantee of future results. The author of the material or a related party will often have an interest in the securities discussed. Please see Full Disclaimer for a full disclaimer.
Charles Lewis Sizemore, CFA, is chief investment officer of the investment firm Sizemore Capital Management and the author of the Sizemore Insights blog.
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