Peter Drucker was an American management consultant, educator and author. He's also one of the most influential people in the history of modern business management and considered to be "The Father of Modern Management."
Drucker had a keen insight into how humans relate to each other. I see the application of many of his business management philosophies in to how participants in individual company 401(k) retirement plans can improve their investment performance.
Below are three great Drucker quotes and the reasons he would have been a great investment advisor to these retirement plan participants.
Reason 1. "If you want something new, you have to stop doing something old."
Buy and hold is the predominant company 401(k) retirement plan investment management strategy today. Individual investors live in hope that they don't lose the last several years of their company 401(k) retirement plan contributions, company matching monies and investment gains in the next great stock market decline or interest rate rise.
When you really "hope" that something bad will not happen to your company 401(k) retirement plan account, you are announcing to the world that you intend to take no responsibility. You intend to take no action yourself to keep another round of historic stock market losses away from your retirement savings.
When you hope, you are making the emotional commitment to "do nothing."
It is very likely that your current mutual fund selection process and corresponding investment performance can be improved. The best way to improve is to change the way that you manage your company 401(k) retirement plan going forward.
Reason 2. "The best way to predict your future is to create it."
