• Bob Brooks

Plan B for Your 401 K Plan - Free Resource

"The most successful people are those who are good at plan B." - James Yorke 

At our town hall meeting a few Saturdays ago, I talked a lot about Plan B investing. My objective was to deliver an easy to understand way of implementing a strategy in your 401 K plan. Since 401 K plans are where most people have a bulk of their assets, this is important to understand. First lets start with defining Plan B investing.

We should all be familiar with Plan A investing. That is when the market is going up and perceived market risk is low to moderate and not high. High market risk signals that there is the potential for big losses ahead. I would suggest that we are in that environment right now. So when Plan A doesn't work anymore, you switch to plan B.

Rarely do investors think in these terms. They stay in Plan A when the writing is on the wall that Plan B should be in place. It is a process of reducing risk to your current risk level. There are two kinds of investors. There is the investor who has one risk level no matter what the market is doing and there is the investor who has 2 different risk levels. They have a risk level when the market is going up and one when the market is going down. Most people that have just one risk level have just one by default. They don't know how to reduce risk. Lets face it! Pop Culture Finance would suggest you never reduce risk. The people with two risk levels experience a great deal of stress during market downturns because the personal risk level has reduced yet their investments stay the same creating a disconnect.  It is time to learn how to create a plan B.

There are different ways to put a plan B together. I have written a paper on how to set up a plan B in your 401 K Plan. If you send me an email, I will send you a copy of it. Request your copy at I wrote it in an easy to understand format. Having said that, you still have to study it a little.

This is a way to implement a Plan B simply by looking at how you position between stocks and bonds. I give you the combinations and I show you how these different combinations of stocks and bonds performed during the good times AND the bad times. This way you can choose your level of comfort. Of course, take the disclaimers to heart. Past performance is not a guarantee of future performance.  

My email is Feel free to email me with questions. Also if you want to learn how I implement Plan B strategies for my clients, lets have a discussion. Send me an email and we can discuss.

Keep the Faith