econintersect.com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



posted on 19 October 2016

The 401k Plan Manager 17 October 2016

by Lance Roberts, Clarity Financial

The Real 401k Plan Manager - A Conservative Strategy For Long-Term Investors


401k-planmanager-101516

NOTE: I have redesigned the 401k plan manager to accurately reflect the changes in the allocation model over time. I have overlaid the actual model changes on top of the indicators to reflect the timing of the changes relative to the signals.

There are 4-steps to allocation changes based on 25% reduction increments. As noted in the chart above a 100% allocation level is equal to 60% stocks. I never advocate being 100% out of the market as it is far too difficult to reverse course when the market changes from a negative to a positive trend. Emotions keep us from taking the correct action.

401k-PlanManager-AllocationShift

Something Just Broke

The good news is we appear to no longer be “stuck" as discussed last week.

The bad news is a more important correction may have just started. We won’t now until we get a bounce next week to see where it fails. A failure to break the downtrend line from recent highs, followed by a break below support at 2132 currently, will lead to a further decline.

We continue to remain cautionary in 401k allocations which have kept volatility low and principal safe. We will once again remain at current levels this week until we see what happens next.

One important note in the 401k chart above. We are dangerously close to triggering a second sell signal, the bottom part of the chart, which will likely coincide with a failed rally attempt over the next week or two. Such an outcome would suggest a weaker market environment in the intermediate term with a high degree of caution required.

Again, with early warning signals are suggesting the correction has more room to go, so let’s be patient once again this coming week.

With the election right around the corner, increased volatility is expected. Therefore, having a little extra cash in portfolios will likely be a good hedge for now. Sit tight for now and I will update you on Tuesday.

If you need help after reading the alert; don’t hesitate to contact me.


Current 401-k Allocation Model

The 401k plan allocation plan below follows the K.I.S.S. principal. By keeping the allocation extremely simplified it allows for better control of the allocation and a closer tracking to the benchmark objective over time. (If you want to make it more complicated you can, however, statistics show that simply adding more funds does not increase performance to any great degree.)

401k-ModelTarget-071616

401k Choice Matching List

The list below shows sample 401k plan funds for each major category. In reality, the majority of funds all track their indices fairly closely. Therefore, if you don’t see your exact fund listed, look for a fund that is similar in nature.

401k-Selection-List

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical Investing Post Listing










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.




Econintersect Investing


search_box

Print this page or create a PDF file of this page
Print Friendly and PDF


The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.


Take a look at what is going on inside of Econintersect.com
Main Home
Analysis Blog
The Job Guarantee, Wage-Price Inflation And Alternative Solutions: Part 2
The Job Guarantee, Wage-Price Inflation And Alternative Solutions: Part 1
News Blog
Early Headlines: Asia Stocks Mixed, Oil, Dollar Up, Gold Down, Health Care Bill Fighting For Life, UK Car Mfg Hits 17-Yr High, UBS Charges 0.6% Int. On Deposits, China Debt Risks And More
Documentary Of The Week: Lee Harvey Oswald And The Call To Raleigh
Dallas 'Dirkules' Goes Past 30,000 Points
Number Of Migrant Deaths 2016 Highest Ever Recorded
Astronomers To Peer Into A Black Hole For First Time With New Event Horizon Telescope
The U.S. Spends More On Defense Than All Other NATO Members Combined
What We Read Today 22 March 2017
February 2017 Headline Existing Home Growth Pace Slows
Trucking Data Mixed In February 2017
A Physical Therapist Explains The Best Time To Stretch
Bank Supervision And The Central Bank: An Integrated Mission
How Might Changes In Federal Policies Boost Innovation And Productivity?
Gauging Firm Optimism In A Time Of Transition
Investing Blog
Brother, Can You Spare A Bitcoin?
Bull Market Still Intact ... For Now
Opinion Blog
A New Agenda Will Win In France
After 75 Years, Isaac Asimov's Three Laws Of Robotics Need Updating
Precious Metals Blog
These Gold Stocks Will Produce Much Bigger Gains Than Gold Itself
Live Markets
22Mar2017 Market Close: Stocks Closed Mixed, Oil Continues Decline, And Gold Trends Higher As The Dollar Index Remains Under 100
Amazon Books & More






.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government































 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved