Those who believe in historical trends may assume that the U.S. is headed towards another recession. While the country is not in one currently, in the last recession, people’s pockets were directly impacted and their 401Ks. That’s why it’s essential to be proactive in protecting your 401K before a recession or any other nationwide action happens.
Strategize Your Plan
If you don’t have a plan for your 401K, it can easily be mismanaged. Keep track of how much money is going in, how much money you want to take out in the future, and what the money flow is on a weekly or monthly basis. Set a goal and if you notice your investment is trending downward, make changes to protect your money.
Work With a Financial Advisor
This benefits those who are not comfortable with the stock market and are interested in an “expert” to manage their funds. However, not all financial advisors will have an investor’s best interests at heart.
To protect your 401K from bad financial advisors, here are a few things you can do:
- Check Their Credentials — Make sure the financial advisor you're working with is credentialed and reputable. You can check this by asking for references or looking them up online.
- Ask Questions — Don't be afraid to ask your financial advisor about their fees, investment choices, and anything else you're unsure about. The more you know, the better equipped you'll be to make decisions about your 401K.
- Get a Second Opinion — If you're unsure about a financial advisor's advice, get a second opinion from another trusted source.
Following these tips can help protect your 401K from bad financial advisors. With careful planning and due diligence, you can ensure that your retirement savings are safe and sound.
Working with an Untrustworthy Financial Advisor?
Even when being proactive and taking precautionary measures to protect your investment, financial advisors may use illegal tactics to benefit themselves. If this happens to you, it is essential to get legal representation immediately.
The nationwide securities law attorneys at Weltz Law are here for you if a financial advisor mismanages your investment. Read how we’ve helped past clients and contact our team today so we can start working on your case. (877) 905-7671