Current Events > 401K rate of return for 2018: 2.5%. Inflation rate for 2018: 3%

(+) Yeah! (+)

-_-

Going nowhere here.
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Now show us what it was in 2017.
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You thought you would?

Trade wars are good and easy to win.

Don't worry, returns will get into the negatives soon enough.
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MysteryMan923 posted...

Now show us what it was in 2017.

My rate of return for 2017 was about 20%.

:v
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I feel sorry for investment advisers. It's either "I lost money" or "I under performed." It's never "I made money" or "I didn't lose as much as the S&P500 did".
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EndOfDiscOne posted...

I feel sorry for investment advisers. It's either "I lost money" or "I under performed." It's never "I made money" or "I didn't lose as much as the S&P500 did".

Good shitpost.

Also how is your return so much lower than the broader market returns what's your allocations
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Honestly, even though people are moving out of places like California because it's expensive you actually shouldn't leave if you have a post-graduate level job. California or other major coastal states are the financially best places to live.

The average district attorney in Los Angeles makes around 107k-114k when they first get hired. An average salary for a district attorney in Boise Idaho doing the exact same job is somewhere in the 60k range. Even with housing price difference that doesn't make up for almost half the salary cut. If you have a degree and especially if you have a post grad degree definitely stay in a place like California or New York. You're better off financially. The huge expense for student loans and making enough savings to have a safety net requires larger pay checks even at the expense of higher living costs. Low pay low rent seems nice but it doesn't factor in the high loans most post grad workers have as well as actually making a decent retirement fund.
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1337toothbrush posted...

Trade wars are good and easy to win.

Don't worry, returns will get into the negatives soon enough.

this is why i liquidated my 401k and put it all into bitcoin
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my YTD is 4.53%. My 12 month rolling is 15.17%.
2017 22.3575%
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SK8T3R215 posted...

EndOfDiscOne posted...

I feel sorry for investment advisers. It's either "I lost money" or "I under performed." It's never "I made money" or "I didn't lose as much as the S&P500 did".

Good shitpost.

Also how is your return so much lower than the broader market returns what's your allocations

If you're more concerned with your returns in 1 year than over your entire career, you're doing it wrong. It's very common for a portfolio to under perform 1 year in a strong market, but beat the market over the long term. Also in a bad year you're probably going to outperform the market.
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SK8T3R215 posted...

Also how is your return so much lower than the broader market returns what's your allocations

That's what I'm wondering. What are you invested in that it's doing so poorly, TC?
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It's almost as if we have a president who is more concerned about his precious ego than what is best for the country.

AlephZero posted...

this is why i liquidated my 401k and put it all into bitcoin

I'd say never put all your eggs into one basket. Unless it's bitcoin. Take a mortgage out on your home and put it all into bitcoin!
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Master_Bass posted...

SK8T3R215 posted...

Also how is your return so much lower than the broader market returns what's your allocations

That's what I'm wondering. What are you invested in that it's doing so poorly, TC?

Fidelity Net Benefits is managing my 401K, it's in something called the FA Freedom 2050 I. It's basically where they invest for you based on your amount of risk aversion, age and retirement goal.

My asset breakdown is:

Domestic Stock: 56.48%
Foreign Stock: 30.02%
Bonds: 6.57%
Short Term: 6.15%
Other: .77%

What should a 401K rate of return be for 2018?
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spanky1 posted...

Fidelity Net Benefits is managing my 401K, it's in something called the FA Freedom 2050 I. It's basically where they invest for you based on your amount of risk aversion, age and retirement goal.

I would recommend getting out of that. Unless your company has a special deal (not sure if that is possible) they are taking 1% of your returns every year to manage that.
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spanky1 posted...

What should a 401K rate of return be for 2018?

I'm doing worse than you with 1.74% for 2018. But overall my return is 8.95% per year so who cares. Don't get so hung up on short term returns in a 401k that you're going to be holding on to for ~40 years.
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KILBOTz posted...

spanky1 posted...

Fidelity Net Benefits is managing my 401K, it's in something called the FA Freedom 2050 I. It's basically where they invest for you based on your amount of risk aversion, age and retirement goal.

I would recommend getting out of that. Unless your company has a special deal (not sure if that is possible) they are taking 1% of your returns every year to manage that.

Yeah, wow, that's a lot for a retirement account. Mine is in a 2050 target retirement date fund (through Fidelity even, lol) and the expense ratio is .06%. 1% is insane.
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KILBOTz posted...

spanky1 posted...

Fidelity Net Benefits is managing my 401K, it's in something called the FA Freedom 2050 I. It's basically where they invest for you based on your amount of risk aversion, age and retirement goal.

I would recommend getting out of that. Unless your company has a special deal (not sure if that is possible) they are taking 1% of your returns every year to manage that.

My fees for the year so far are $210. Account balance started at about 55K, and I'm now at about 60K. It doesn't seem like it's as bad as you're saying.
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Beginning Balance as of 01/01/2018 $54,916.63
Your Contributions $2,496.00
Employer Contributions $1,344.00
Fees -$210.64
Change in Market Value $1,416.28
Current Balance as of 08/13/2018 $59,962.27
Vested $59,962.27
Personal Rate of Return as of 08/13/2018 2.51%
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EndOfDiscOne posted...

If you're more concerned with your returns in 1 year than over your entire career, you're doing it wrong. It's very common for a portfolio to under perform 1 year in a strong market, but beat the market over the long term. Also in a bad year you're probably going to outperform the market.

I wanted to see why his returns were low due to allocations not saying he should make huge changes due to half a year of below average returns.

It has a lot in foreign and bonds which haven't performed well this year and whatever "short-term" is which is kinda concerning since this is supposed to be a long-term investment vehicle. Why are your contributions so low?
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i think the fees are your 401k admin fees, not the mutual fund fees you are investing in. but I'm not sure.
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SK8T3R215 posted...

EndOfDiscOne posted...

If you're more concerned with your returns in 1 year than over your entire career, you're doing it wrong. It's very common for a portfolio to under perform 1 year in a strong market, but beat the market over the long term. Also in a bad year you're probably going to outperform the market.

I wanted to see why his returns were low due to allocations not saying he should make huge changes due to half a year of below average returns.

It has a lot in foreign and bonds which haven't performed well this year and whatever "short-term" is which is kinda concerning since this is supposed to be a long-term investment vehicle. Why are your contributions so low?

I contribute 8% of my income. >_>
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@spanky1 It might be buried somewhere but if you poke around you should be able to find the expense ratio of the fund you're invested in.
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AlephZero posted...

KILBOTz posted...

spanky1 posted...

Fidelity Net Benefits is managing my 401K, it's in something called the FA Freedom 2050 I. It's basically where they invest for you based on your amount of risk aversion, age and retirement goal.

I would recommend getting out of that. Unless your company has a special deal (not sure if that is possible) they are taking 1% of your returns every year to manage that.

Yeah, wow, that's a lot for a retirement account. Mine is in a 2050 target retirement date fund (through Fidelity even, lol) and the expense ratio is .06%. 1% is insane.

i don't do targets, my highest individual mutual fund is .69% and is the only US mid/small cap that my company has available as an option. Most of my stuff is closer to .1% than 1% though. I think like Russell 2K is .05%.
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