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401K
#15193454
09/17/24 08:03 PM
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Joined: Mar 2010
Posts: 2,195
thrashfish
OP
Extreme Angler
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OP
Extreme Angler
Joined: Mar 2010
Posts: 2,195 |
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.
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Re: 401K
[Re: thrashfish]
#15193461
09/17/24 08:13 PM
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Joined: Dec 2003
Posts: 41,000
Allison1
TFF Guru
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TFF Guru
Joined: Dec 2003
Posts: 41,000 |
Over time that is great. Mine is about 16% this year but it goes up and down.
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Re: 401K
[Re: thrashfish]
#15193467
09/17/24 08:17 PM
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Joined: May 2002
Posts: 6,036
JCG57
TFF Celebrity
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TFF Celebrity
Joined: May 2002
Posts: 6,036 |
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.
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Re: 401K
[Re: thrashfish]
#15193469
09/17/24 08:20 PM
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Joined: Nov 2009
Posts: 40,725
Dan90210 ☮
Jr Deputy Dan
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Jr Deputy Dan
Joined: Nov 2009
Posts: 40,725 |
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.
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Re: 401K
[Re: thrashfish]
#15193509
09/17/24 09:15 PM
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Joined: Aug 2003
Posts: 2,244
skeeterokc
Extreme Angler
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Extreme Angler
Joined: Aug 2003
Posts: 2,244 |
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.
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Re: 401K
[Re: thrashfish]
#15193513
09/17/24 09:19 PM
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Joined: Aug 2003
Posts: 2,244
skeeterokc
Extreme Angler
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Extreme Angler
Joined: Aug 2003
Posts: 2,244 |
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.
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Re: 401K
[Re: thrashfish]
#15193527
09/17/24 09:35 PM
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Joined: Jun 2020
Posts: 15,260
grandbassslayer
TFF Guru
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TFF Guru
Joined: Jun 2020
Posts: 15,260 |
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.
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Re: 401K
[Re: thrashfish]
#15193543
09/17/24 09:49 PM
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Joined: Mar 2010
Posts: 2,195
thrashfish
OP
Extreme Angler
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OP
Extreme Angler
Joined: Mar 2010
Posts: 2,195 |
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.
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Re: 401K
[Re: Dan90210 ☮]
#15193546
09/17/24 09:52 PM
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Joined: Apr 2004
Posts: 14,636
Stump jumper
TFF Guru
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TFF Guru
Joined: Apr 2004
Posts: 14,636 |
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.
2200 Bay Champ/200 Mercury Optimax 2017 Tundra TSS 4x4 Crewmax 5.7L
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Re: 401K
[Re: thrashfish]
#15193549
09/17/24 09:53 PM
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Joined: Feb 2006
Posts: 115
mlatham
Outdoorsman
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Outdoorsman
Joined: Feb 2006
Posts: 115 |
Go see a certified financial planner
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Re: 401K
[Re: Stump jumper]
#15193552
09/17/24 09:59 PM
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Joined: Mar 2010
Posts: 2,195
thrashfish
OP
Extreme Angler
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OP
Extreme Angler
Joined: Mar 2010
Posts: 2,195 |
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.
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Re: 401K
[Re: thrashfish]
#15193560
09/17/24 10:08 PM
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Joined: Jun 2020
Posts: 15,260
grandbassslayer
TFF Guru
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TFF Guru
Joined: Jun 2020
Posts: 15,260 |
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.
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Re: 401K
[Re: thrashfish]
#15193589
09/17/24 10:43 PM
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Joined: Nov 2015
Posts: 2,050
Quillback
Extreme Angler
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Extreme Angler
Joined: Nov 2015
Posts: 2,050 |
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.
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Re: 401K
[Re: thrashfish]
#15193595
09/17/24 10:49 PM
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Joined: Apr 2006
Posts: 26,227
outfishdya
TFF Guru
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TFF Guru
Joined: Apr 2006
Posts: 26,227 |
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
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Re: 401K
[Re: thrashfish]
#15193618
09/17/24 11:02 PM
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Joined: Aug 2003
Posts: 2,244
skeeterokc
Extreme Angler
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Extreme Angler
Joined: Aug 2003
Posts: 2,244 |
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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