401k Investing for Newbies and Nerds
There are one hundred and thirty million American workers who collectively own $35 trillion in their 401k and related retirement accounts. The owners of these accounts face both challenges and opportunities. The largest opportunity is that their accounts are investment accounts, not savings accounts, and for the past three decades they have grown in the low double-digit range.
The main challenge 401k owners face is that there are required to make their own investment decisions by choosing from a limited menu of mutual funds.
These 130 million self-directed retirement account owners can be divided into 3 distinct categories. The first are those who could care less about their money and are willing to just let nature take its course. The second group, NEWBIES, are inexperienced in the investment process, but are willing to become engaged in the management of their hard earned dollars. The third group, NERDS, are those who have a modicum of investment expertise and are willing to devote the time and energy to expand their investments skills.
The mission of my podcast is to motivate and educate 401k NEWBIES and NERDS on how to optimize their 401k experience. I have a 62-year relationship with the stock market. I have been a stockbroker, finance professor and individual investor. Ten years ago, I appointed myself to the position of 401k guru extraordinaire. I have no investment products to sell. All I have to offer are the objective observations of one who has been there and done that.
401k Investing for Newbies and Nerds
Season 1 Episode 22 Where are we, How did we get here, and Where do we go from here?
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As we transition from summer into the fall months, the words of Will Rogers come to mind: “The worst month to invest in the stock market is September. The others are January, February, March…..November, and December.
So far, the stock market year 2025 has been interesting, but not overly dramatic. In this episode of my podcast, I will provide listeners with my thoughts and observations on where we are, how we got here and some comments about where the remainder of the year might take us. Do not take my comments concerning the remainder of the year as a forecast. They are observations based upon my ongoing 62-year journey with the stock market and subject to change at a moment’s notice.
Investing is not a one size fits all proposition. As you listen to my comments, I request that you put them in the context of your own asset base, temperament and skill level. There is however, one approach that the rational, disciplined retirement fund investors can use to remain sane in a chaotic environment: Forget the needle and buy the haystack.