This is my first year in this plan. I just checked to find out I am earning -8.5%, a little bit shocked since the rep or consultant guy or whatever told us... on average, one should be earning something 8%. That's a big difference...anyways I am just wondering if I should take any action? and how much others are losing.
How much are you losing on your 401k?
- Thread starter Casawi
- Start date
SpunkyJones
Diamond Member
- Apr 1, 2004
- 5,090
- 1
- 81
I am getting sick of these threads. The 8% figure your representative quoted you is for long term performance. Your portfolio may be up 25% one year, and down 15% the next year. Over a very long period of time, the stock market has historically returned 10-11% before inflation. Many people believe that expecting these gains to continue from this point onward is only wishful thinking, and say that ~7% before inflation is a more reasonable figure.
On another note, people need to do some basic research and see that the economy has always moved in cycles. People who are just starting to invest in today's environment will likely see several more economic downturns during their lives.
On another note, people need to do some basic research and see that the economy has always moved in cycles. People who are just starting to invest in today's environment will likely see several more economic downturns during their lives.
If anything put more in. Short of the US folding it will go back up again. Better to get in cheap.
Fingolfin269
Lifer
- Feb 28, 2003
- 17,948
- 34
- 91
Not even paying attention to it at this point. I don't want to be tempted to do something stupid.
The general rule of thumb for investing is:
1. Max out 401k to get the full company match
2. Max out a Roth IRA
3. Contribute to your 401k up to the maximum
4. Taxable investing
If you have an extremely crappy 401k, you may be better off sticking with the Roth IRA and taxable accounts.
I have one from my last job that is heavily weighted in that companies stock that stayed with schwabb, my current employer uses fidelity. It is doing horrible, but right now I'm just hanging in hoping the turn it around.
Scarpozzi
Lifer
- Jun 13, 2000
- 26,391
- 1,780
- 126
How old are you? The point of retirement isn't gaining in the short run. While you're losing 12%, your continuing to accumulate shares. When you get enough of them, a small increase in the market will result in a much larger return. Hold steady with your investments and look at downturns in the market as a large opportunity for future gains.
Just switch over to a less risky approach when you reach your late 40s/early 50s.
Just switch over to a less risky approach when you reach your late 40s/early 50s.
I'm still in my 20's so I'll be ok. I had a 23% return for 2007 because it was shooting up, I'm currently sitting with a negative overall rate from the start of the account in jan of 06, but it should work itself out over time. I occasionally log in and see how bad it is, but I'm not cashing out right anytime soon.
Fingolfin269
Lifer
- Feb 28, 2003
- 17,948
- 34
- 91
Dont know, dont want to know. At this point dont care either. I am 35-40 years from retirement. I am still contributing the max however.
I am definitely not looking at a cash out option, because I will just do something stupid that gets me -100% return ...lol I was just wondering, if I am investing wrong or something. It looks likes everyone is hurting and holding tight.
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