Yesterday, I received my final 2007 401(k) statement in the mail. According to their records, my account’s performance in the fourth quarter last year was down 3.50% while my performance for the entire year was up 7.09%. That’s a bit of a let-down from 2006, when my 401(k) performance was a strong positive 16.25%. It would be nice to see good performance this year, but I’ll be more concerned with performance when I approach the point of needing my retirement funds.
(Those measures are internal rates of return including cash flow. Looking at pure balances, my account was up 45% in 2007.)
This year, I’ll be contributing to a Roth 401(k) in addition to the traditional. My asset allocation for my contributions in one account will mirror the other, so I would expect similar returns in each account this year. See also Russell Bailyn’s article about the benefits of a Roth 401(k).
How was your 401(k) performance in 2007?
Here are some articles from around the web I’ve enjoyed lately.
I have to disagree with Nickel’s five things that are worth the money. The only items of his five that I use are online movie rentals, but I really should have canceled my Netflix subscription months ago. I have been meaning to purchase a print server, however, so maybe I’ll look into the Airport Express following Nickel’s suggestion.
Jim is busting out the trivia with 50 fun facts about banks. Did you know that the largest cash robbery of a bank took place in North Carolina in 1997? Were you aware that the total amount of money held in United States banks at the end of 1934 was $46,437,000,000.00? Read 48 more nuggets of information at Blueprint for Financial Prosperity.
J.D. from Get Rich Slowly writes about the value of a college education. Those with a undergraduate or graduate degree generally earn more than those without, but that’s not the only reason to get a college education. If all you’re interested in is financial return on your monetary investment in a degree, then you could be in for disappointment.
Trent explains how he remains frugal in the era of new security regulations at airports on The Simple Dollar. Empty water bottles, refilled travel-sized toothpaste containers, and energy snacks help Trent feel prepared for his flight, which he assumes will be delayed.
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I did 12.3% on the year
Well, considering that the S&P 500 did 5.49% for 2007, 7.09% doesn’t look so bad. And 12.3% is phenomenal in comparison.
9.8% for me
6.7% with 70/30 stock/bond mix and with 20% International
Strange… I think you got my statement by mistake. I just checked my performance online while doing some re-balancing and those are nearly my exact numbers for 2007. I’ve switched my portfolio to something a tad more aggressive, so I’m sure it will be different next year.
8.8% return for 2007. First part of 2008, down 7%.
-1.8%. Apparently I’m doing something completely wrong…
9.8% for 2007.. i think i did okay considering that’s higher than the s&p average
(13.9% return in 2006)
portolio mix looks like this.. 89.5% stocks / 10.5% bonds (about to be 30 years young next month) =D
I don’t look at the 401k in isolation because it only has one fund as part of our asset allocation strategy. I only look at our overall portfolio increase. 19.7%
8.0 for 2007
10.6 for 2006
-10.4 year to date 2008
Unfortunately, the choices are limited :(
19%. ;-)
16.67% for 2007
-6% for 2008 (so far)
For comment #10, your choices are not ‘limited’ If you rollover your 401k into a self-directed IRA, you can take advantage of tons of different investments that may not be available under your employer sponsored 401k plan… Investments such as commodities futures contracts, real estate, certain ETFs, etc.
I would rollover to a Roth IRA right now and invest in commodities, gold, oil, soybean, copper, wheat & sugar futures contracts.
My question for everyone is, what’s your return after fees and inflation?