Introduction 401k Protector is an easy way to protect your 401k or IRA from bear market losses. At the end of 16 years (from January 1995 to January 2012), those who followed the 401k-Protector strategy had 48% more in their accounts than did those who followed a buy and hold strategy. Bear Markets Occur Regularly A Bear Market arrives once every 4 years on average and takes the market down 35% on average.   Those who follow a "buy and hold" strategy will suffer, therefore, through every Bear Market that comes along. Avoiding a Bear Market is Easy Bear Markets are avoided by following the signals on the 401k Protector Chart. When the thick black line falls below the Zero Line, a Bear Market is starting. When the thick black line rises above the Zero Line, a Bull Market is starting. The 401k Protector Chart Shows the Bull Market and Bear Market Signals The Stock Market Chart (S&P 500) Shows Bear Markets Avoided 401k Strategy For Bear Markets Transfer out of the various 401k Stock Funds and into a 401k Money Market Fund (a safe haven for cash during Bear Markets that pays interest as well). 401k Strategy For Bull Markets Transfer out of the 401k Money Market Fund and into the various 401k Stock Funds. Is It Time To Be In The Market or Out Of The Market? The answer to this question is displayed on the current 401k Protector Chart. No One Will Tell You "It's Time To Sell" The Decision Is Yours Alone Fund Mangers with whom you entrust your 401k savings will never say, "It's time to sell".   There's a logical reason for this.   A Fund Manager's compensation is based on how much money is under his management.   Therefore, he is the last person who will say, "It's time to remove your savings from my 401k Mutual Fund". Fund Managers will advise, instead, that you must "buy and hold for the long term" in order to make money in the market.   Then, after presenting you with huge Bear Market losses they will say, "It's too late to get out now.   You may as well hold on". "Diversification" Won't Protect You Against A Bear Market "Diversification" is another common piece of advice that Investment Counselors use to keep you in the market when you should be out. Diversification is a good thing; but only in a Bull Market.   It will not protect you from a Bear Market.   Just as a falling tide lowers all boats, a Bear Market lowers all stock market sectors. Your only defense against a Bear Market, therefore, is to be out of the stock market entirely.