How To Protect 401(k) From Stock Market Crashes

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Create a safety net --a protective overlay on  your savings. In this episode, I'm going to  

address the question "How to protect 401(k)s from  stock market crashes?" Get ready. You're going  

to learn some things that most Americans and  most financial advisors don't even understand.

So, my name's Doug Andrew and I've helped people  prepare for a comfortable retirement now for  

a more than 4 and a half decades. And frankly,  I've never owned a 401(k) and I never will.  

And especially if I ever did, it would not be  invested in the market. Yet, most Americans  

have their money in tax-deferred IRAs  and 401(k)s invested in the market.  

And that's the last thing that you should be  doing at retirement, is having your hard-earned  

money (savings) exposed to market volatility.  So, you want to make sure that the pitfalls  

of money invested in the market historically has  caused people to put off retirement sometimes 7  

years waiting for the market to come back or  they've had to tighten their belt or they've been  

afraid, "Golly, I may outlive my money." It causes  all kinds of havoc and it's not predictable. So,  

you want to get your money out of the market. You  can still participate in the market when it does  

well but not lose when it goes down. How do you do  that? I'm going to show you 2 ways in this episode  

how you can protect yourself so that you do not  lose when the market goes down. A safety net,  

a protective overlay on your money even if it's in  the market. But I would recommend you get most of  

it out before retiring. So, clear back in 1980  when one of my favorite vehicles first came out  

and was introduced by EF Hutton, they were not  an insurance company. They were a brokerage firm.  

My clients were never happier than when I got  them out of the market. So, let me share with  

you before I teach how indexing works which is  one of my favorite strategies. And most people,  

most financial advisors do not understand that.  Let me share with you how you need to participate