401(k) Monitoring

Many people have a 401(k), but very few have a specific strategy to help it grow.

Typically, what happens when someone is eligible for the company 401(k) plan, they are given an overwhelming amount of information with little or no guidance. Understandably, being overwhelmed with the choices, some end up talking to fellow colleagues, or don’t discuss it with anyone.

Alas, a decision must be made, so finally, without a lot of confidence, people end taking their best guess and choose a few options which may or may not be in their best financial well-being. The worst part is that after the 401(k) investments are made, they are often ignored, or even neglected. This passive approach can lead to disaster.

Your 401(k) may be your biggest asset while being the one nurtured the least. We suggest a more methodical, well thought out approach designed to preserve and grow your 401(k). We offer a strict, mechanical, trend-following strategy.

Our strategy was developed with three main objectives in order of importance:


Miss major downturns in the market

It is often stated that the number one rule of investing is “don’t lose your capital.” The second rule is to “remember rule number one.” It is important to live to fight another day, which in the investment world means being aware when the tides of the market have shifted and taking appropriate action.

Catch long-term up trends in the market

One of the largest challenges of moving out of an investment is getting back in. In fact, this challenge is often sighted for a reason to never sell an investment. We overcome this challenge by having a plan to enter and exit the vehicles within the 401(k). When an investment is sold, we have a strategy to get back in.

Keep transactions to a minimum

More than likely, the investments within your 401(k) plan are longer-term investments. The actions to take in order to buy one vehicle and sell another are relatively ‘clunky’ compared to alternative platforms designed for investing. Transactions are kept to a minimum by following the long-term trends of the market.

With each 401(k) we go through a simple, but complete 4-step process:

By following our approach, we help you take the guesswork out of choosing the investments in your 401(k). We work with you from the beginning stages, from implementation to monitoring, and notifying you of recommended changes.

Analyze all the 401(k) options and the plan document

Although most 401(k)s are similar in structure, each one has different rules associated with the investment options, contributions, matching, and vesting. So, the first thing is to read the plan document and understand the limitations and benefits each 401(k) offers. For example, is the Roth option available? Would the Roth or Traditional option be more advantageous for you? We help you decipher the nuances for your benefit.

Find the best candidates according to our buy and sell rules

Once the details of the plan are determined, we can review all the investment options available in your 401k. Each option (or representing option) is recorded and we do the research to determine which vehicles are in a buy signal and which ones are in a sell signal according to our trend following strategy. After this, we go through each one of the ‘buys’ and determine what we feel to be the best options for you.

Make initial recommendations

After our research is completed of which funds are trending up and which ones are trending down, we review our initial recommendations with you and help ensure you have selected the recommended funds, allocation and contribution percentages. We cannot enter the buys/sells for you, but we will assist in reviewing the transactions to ensure accuracy.

Monitor the investments and notify of what changes, if any, should be made

The final, and continuous step, is to monitor the current investment vehicles that you own as well as the other potential opportunities within the 401(k). Each month, we email you of what recommended changes, if any, should be made. No matter what, each month you will hear from us. If changes are recommended and you want further help, we are happy to help confirm anything.

Take the worry and uncertainty about your 401(k) elections out of the equation and start to track your results against your financial targets

With each client, we take on a fiduciary responsibility. If you want someone consistently watching your 401(k) investments on your behalf, we can help. Each month you know exactly where to allocate your investment capital and which funds to continue your contributions.

All recommendations are based upon our trend following strategy designed to preserve principle, participate in market advances, and keep transactions to a minimum. Stop worrying about the next market correction and implement a plan that can protect your profits before it’s too late.

401(k) Monitoring

Not sure where to start?

Set a no-obligation appointment today and we will help you determine where you are now, where you want to go, and what needs to be done to get there.