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401K return

October 9th, 2007 at 04:06 pm

My 401K is doing pretty good. The return percentage normally picks up really good starting October. (The trend I noticed last few years.) My return so far is 11% this year, and I am happy about that. I'm not a risk taker, so I am diversifying my 401K balance to 10 different funds. Some good, some ok, but overall, 10% return is a good percentage for me.

It's amazing how money makes money. The return on my 401K has been better than my raise, so I really don't care about my meager raise anymore. Actually, a couple years ago, I didn't notice that I got a raise because the amount was so tiny LOL



4 Responses to “401K return”

  1. fern Says:
    1191956715

    You should be able to achieve diversification with 4 or 5 well-chosen funds. 10 sounds like you've over-diversified, so basically, you could achieve the same thing much more cheaply by buying a single index fund. Index funds always have lower annual expenses than actively managed funds.

  2. terri77 Says:
    1191958197

    I agree with Fern. Diversification doesn't mean having a lot of funds. You should be able to achieve your goals with half of those funds no matter how much or little money you have. I signed up for a managed account with my 457(b) company and when they stuck me in 11 different high-cost funds I promptly cancelled it and put myself in about 5 funds, 3 of those indexes. Stick to low-cost index funds so that you keep more of your return.

  3. Maismom Says:
    1191971307

    That's a good avice. I will review them as it's time for me to review it anyway.

  4. Richard Marsanoa Says:
    1226047240

    I agree with Fern and Terri. Diversification doesn't mean having a lot of funds. I think You should be able to achieve your goals with half of those funds no matter how much or little money you have. I signed up for a managed account with my 457(b) company and when they stuck me in 11 different high-cost funds I promptly cancelled it and put myself in about 5 funds, 3 of those indexes. Stick to low-cost index funds so that you keep more of your return.

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