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401K #15193454 09/17/24 08:03 PM
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thrashfish Offline OP
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I know nothing about investing so what is considered a good rate of return of your investments in a 401K? Mine is right at 11% and it seems awfully low to me with retirement coming up in a couple of years.

Re: 401K [Re: thrashfish] #15193461 09/17/24 08:13 PM
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Over time that is great.
Mine is about 16% this year but it goes up and down.

Re: 401K [Re: thrashfish] #15193467 09/17/24 08:17 PM
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Your return will reflect the type and quality of the investments you are in. If you are 100% invested in equities, the S&P 500 might be a good benchmark. If you are invested in a blend of equities, bonds and anything else you need to reflect that in your benchmark.

Re: 401K [Re: thrashfish] #15193469 09/17/24 08:20 PM
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Originally Posted by thrashfish
I know nothing about investing so what is considered a good rate of return of your investments in a 401K? Mine is right at 11% and it seems awfully low to me with retirement coming up in a couple of years.


If you are retiring in a couple years your 401k should be set very conservatively. Most your money in cash/bonds. So if that is the case 11% is pretty good. If you have a lot of exposure to stocks with retirement just a few years out... risky business.

Good luck in retirement.

Re: 401K [Re: thrashfish] #15193509 09/17/24 09:15 PM
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Originally Posted by thrashfish
I know nothing about investing so what is considered a good rate of return of your investments in a 401K? Mine is right at 11% and it seems awfully low to me with retirement coming up in a couple of years.


The general rule of thumb for a solid average annual return rate on a 401(k) is between 5% and 8%. A statement from many financial institutions.

So, according to this statement, your return is excellent.

Re: 401K [Re: thrashfish] #15193513 09/17/24 09:19 PM
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The 4% rule is a common rule of thumb in retirement planning to help you avoid running out of money in retirement.

Edit:

This is what you take out.

Last edited by skeeterokc; 09/17/24 11:00 PM.
Re: 401K [Re: thrashfish] #15193527 09/17/24 09:35 PM
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Originally Posted by thrashfish
I know nothing about investing so what is considered a good rate of return of your investments in a 401K? Mine is right at 11% and it seems awfully low to me with retirement coming up in a couple of years.

The problem is usually always the amount of money you are putting in- not the rate of return. Most 401ks are invested in fairly stable investments that track the S&P500- they are going to go up and down but over the long haul 7-8% average.

Re: 401K [Re: thrashfish] #15193543 09/17/24 09:49 PM
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I've worked for this company going on 34 years but we didn't get a 401K until about 8 years ago. I'm adding 10% every week and the company is matching 5% but I still think that I need to talk to the company handling the accounts to see if the return can be bumped up some with different investments.

Re: 401K [Re: Dan90210 ☮] #15193546 09/17/24 09:52 PM
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Originally Posted by Dan90210 ☮
Originally Posted by thrashfish
I know nothing about investing so what is considered a good rate of return of your investments in a 401K? Mine is right at 11% and it seems awfully low to me with retirement coming up in a couple of years.


If you are retiring in a couple years your 401k should be set very conservatively. Most your money in cash/bonds. So if that is the case 11% is pretty good. If you have a lot of exposure to stocks with retirement just a few years out... risky business.

Good luck in retirement.

Depends on when you plan to withdraw it. Retired 4 years and have not touched mine and don't plan to for 5+ more.


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Re: 401K [Re: thrashfish] #15193549 09/17/24 09:53 PM
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Go see a certified financial planner

Re: 401K [Re: Stump jumper] #15193552 09/17/24 09:59 PM
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Originally Posted by Stump jumper
Originally Posted by Dan90210 ☮
Originally Posted by thrashfish
I know nothing about investing so what is considered a good rate of return of your investments in a 401K? Mine is right at 11% and it seems awfully low to me with retirement coming up in a couple of years.


If you are retiring in a couple years your 401k should be set very conservatively. Most your money in cash/bonds. So if that is the case 11% is pretty good. If you have a lot of exposure to stocks with retirement just a few years out... risky business.

Good luck in retirement.

Depends on when you plan to withdraw it. Retired 4 years and have not touched mine and don't plan to for 5+ more.


I don't plan on touching it until I turn at least 70, I'm 63. If i don't make it that far at least my wife can enjoy it. banana

Re: 401K [Re: thrashfish] #15193560 09/17/24 10:08 PM
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Originally Posted by thrashfish
I've worked for this company going on 34 years but we didn't get a 401K until about 8 years ago. I'm adding 10% every week and the company is matching 5% but I still think that I need to talk to the company handling the accounts to see if the return can be bumped up some with different investments.

Is that when you started retirement savings in total- 8 years ago? They have what they call catch up contributions, the only way you’ll retire with a bit of dignity is to begin doubling what you are investing and maybe delaying retirement a bit.

Re: 401K [Re: thrashfish] #15193589 09/17/24 10:43 PM
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11% is great, but the market has been on an upturn. There's this thing called the rule of 70. Divide 70 by the percent return to see when your investment doubles. So 70 divided by 11, means your investment will double in about 6.5 years. That's a very rough estimate, and I can't remember what compounding basis it is built upon, but you can do a search on it.

Re: 401K [Re: thrashfish] #15193595 09/17/24 10:49 PM
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Mine is at 12% today, I hate looking at it though. Seems to be bad luck. I was low around 4 % last year and my wife's was nearly 20 %. I got no clue in this game, just along for the ride


Sometimes a bitter man trying to be a better man
Re: 401K [Re: thrashfish] #15193618 09/17/24 11:02 PM
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Originally Posted by thrashfish
I've worked for this company going on 34 years but we didn't get a 401K until about 8 years ago. I'm adding 10% every week and the company is matching 5% but I still think that I need to talk to the company handling the accounts to see if the return can be bumped up some with different investments.



Your company matching 5 percent is awesome.

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