I finished the year with 16.3% rate of return in my 401(k). I'm 29. Just wondering if that's good for the year.........
2007-01-05 03:03:23 · 7 answers · asked by espsmommy 2 in Business & Finance ➔ Investing
Your absolute rate of return is excellent, you roughly matched the S&P 500 return for the year, which most investors and institutions use as a benchmark to gauge their returns against.
Without knowing what the volatility of the portfolio was throughout the course of the year and what your asset allocation was, it is hard to determine what your risk adjusted rate of return was for the year and how good that return actually is.
Bottom line: 16% is a good ROR and nothing to sneeze at.
2007-01-05 04:27:36 · answer #1 · answered by shooter334 1 · 0⤊ 0⤋
16.3% is definitely good....better than -16.3%.
Mine was higher at 20.2%, but I had roughly 20% in International/Emerging Markets funds (Averaged 27.7% in those 3 funds) and 15% in REITs (was up 35.0% for the year).
I did have some conservative funds that made between 12 and 15%, but you have to have balance in your portfolio for all of the ups and downs of the stock market.
For perspective, my 3 year return was 14.4% and my 5 year return was 11.1%, so 16.3% in a year is good.
2007-01-05 04:14:38 · answer #2 · answered by t_roe 3 · 0⤊ 0⤋
I got 12.73% (16.88% with matching). But I had a large amount in the begining of the year when returns were bad (all my money went into the 401K in the first week of january). Overall you did well.
2007-01-05 03:47:46 · answer #3 · answered by NYC_Since_the_90s 6 · 0⤊ 0⤋
I think that's a very comfortable return.... if you can stay close to that in the " bad years" , you'll have quite a bundle at 60 years old.
Keep your eyes on it !! Good luck.
2007-01-05 04:08:19 · answer #4 · answered by jebediabartlett 6 · 0⤊ 0⤋
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2007-01-05 04:24:36 · answer #5 · answered by Anonymous · 0⤊ 1⤋
Is this your own money or the company you are working for?
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2007-01-05 04:14:05 · answer #6 · answered by J Bace 1 · 0⤊ 3⤋
Thats very good, mine was 14.8% after everything.
2007-01-05 04:16:02 · answer #7 · answered by Rogerg555 2 · 0⤊ 0⤋