I am getting a bit aggravated at not being at any place for long. Between going at my parents (and having to work at PT job) and being between where I rent, where I work, and at my parents' again, I've managed to split my things and now I dont know where anything is. To make matters a bit more annoying, there's the knowledge that neither place is a permanent one! I'll be moving out of the rental by July (beginning or end? Not sure yet!), and I havent found any decent postings of places closer to FT job. It's irritating.
I will continue with the next part of my debt-journey review tonight, but for this morning, has anyone noticed their 401k's/IRAs/Retirement funds being more than sluggish? Last year I finished with a 30% rate or return on my FT 401k... this year, almost 4 full months in, I am at -0.92%. Yes, that's a negative! I am not sure if I want to change where I want my funds or sit it out. Right now it's mostly stocks. I am just surprised how much of a difference there is between one year and the next... I shouldnt be, but last year was the first year I actually looked at those numbers, so I am disappointed in this year's performance.
How often do you move your 401k elections? Should I sit it out until it improves, or seek better funds to invest in?
Mine is in an age based portfolio. Becomes less risky as I get older. As young as you are, I'd say just ride it out. Just consider that your investment are currently buying low, so when it does rebound a bit you'll have more to earn compound interest. That's the only way I got through the recession tanking without having panic attacks. You're a long way from retirement.
ReplyDeleteSit it out. I am so "nervous" when it comes to these things so I tend not to look. But G-man's fund changes constantly.....the over all trend is upward though.
ReplyDeleteI'd sit it out, that's what I do with mine. I've had the same investments for 4 years (I started my 401k when I started with this company.. 6% of my salary + a 6% company match). It has it's ups & downs, but mostly seems to be growing.
ReplyDeleteI don't change my 401k. I usually just ignore it. Every once in a while I take a peak at the statement. Usually nothing exciting but sometimes I'm impressed to see the number jump. Right now mine's at the nothing exciting stage again.
ReplyDeleteWe haven't seen anything goo happening in our 401K for a while... I hope it changes, or we'll be very broke when retirement rolls in :)
ReplyDeleteHaha, hope it does change for the best soon.
DeleteMine's sluggish, My rate of return for the first quarter was 2%. You are young - wait it out. Just tell yourself that when the market is down, the prices of those stocks are cheaper and you are getting to buy more stocks for your 401k and when it goes back up, you will see bigger gains then, because you will own more shares.
ReplyDeleteIndeed, I hadnt thought of it that way! I was just wondering if perhaps my elections werent the best they could be.
Delete30% returns year over year aren't very realistic. You should actually hope the market tanks because then your contributions are buying on sale instead of full price.
ReplyDeleteOh, I wasn't expecting 30% year after year, but I do consider it a big fluctuation from 30 to -1. However, I do like your point of view a lot better! Buying the stock on sale vs full price, that's a good way to think about it.
DeleteI've done different approaches with my 401k - I've watched it like a hawk....picked funds by getting the morning star rating/category (then company and Fidelity got greedy and wantd to charge to have the extra fund options so I picked one of the 'freedom' type funds- lifecycle? where you pick a target year and they pick funds within a fund. my main regrets with my 401k over the 23 some years I've been working were - not switching from the after tax thrift to the pretax, not maxing or pushing myself to put in as much as possible the earlier years, taking after tax money out, borrowing on mine a few times, and when the current company bought us I could have moved my old 401k to a IRA but wanted the loan option 'just in case' so left it with the new company. BIG MISTAKE since I could have gotten othe rmutual funds 'free' outside the 401k and these were taken away a few years ago since I didn't want to pay a yearly fee for them. I also picked a couple of other funds - 'safe money market type for a teeny percentage and a couple of index funds just to 'have fun'. mine seems to do better when I only check it every so often and I do better too not stressing!
ReplyDeleteSusanna