401k plans are one of the most neglected investment vehicles that most individuals have. Most are funded through an automatic payroll deduction plan and nothing calls our awareness to their existence except their quarterly investment report.
The 401k trading system is intended for those who want to take control of managing their 401k plan’s investments. It includes the investments that commonly appear as available 401k offerings. The user can view the relative performance of this generalized list and match them with the specific offerings of their particular plan.
Expectancy Financial’s 401k investment management approach enables you to adopt this investing orphan and keep you aware of the falling in and out of favor of the different choices that are in your plan.
Monthly rankings of the better performing areas of the market are sent to you by email. They indicate what parts of the market to sell and what parts to buy based on our risk avoiding models which can be overlaid on your particular plan choices.
It has been found that 95% of 401k plan participants are still in the original investment choices they selected when they signed up for their plan, which was often decades ago. But the market winds frequently blow in different directions. You are doing yourself and your retirement a disservice if you do not actively manage this important funding source of your retirement comfort level.
The basic system invests in three securities and the selections are revisited at the end of every month. You can review the behavior of the trading system, as back-tested, on the adjacent tabs. The underlying premise is that we invest in those securities that are showing the best recent performance but our risk overlay will take us out of the market, into cash, when market risk levels are high.
This trading system was developed balancing several realities. First, we wanted a good return. Second, the drawdown of our account had to be small. Third, it only trades, at most, once a month thereby minimizing the time that you had to take action. Fourth, it had to perform over recent good periods as well as bad periods in the market.
This system is not limited to use in 401k plans. The basic premise will work in an IRA as well as in a regular taxable account. To assist you in using it in these other types of accounts, please see the “401k Trade Lists” tab that lists possible candidates for each market sector. This list includes both mutual funds as well as ETFs. Obviously, results will vary depending on the investment choices that you make.