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Second Quarter 401(k) Results Are In

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According to the statement I received in the mail, my 401(k) investments returned a healthy 6.56% return (not annualized) over the second quarter. For the year so far, that’s 10.31%.

I’m pretty happy with these results considering I changed my contribution instructions to be a little more conservative a few months ago as the stock market was hitting highs. Well, perhaps changing the allocations was a bit premature as the market is still doing well. I should probably learn my lesson and just stay invested aggressively. I’m in for the long term, so corrections over the next few years shouldn’t bother me.

Perhaps my return would have been higher if I didn’t change my contribution instructions.

Updated September 28, 2007 and originally published July 17, 2007. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes, also known as Flexo, is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about him and follow Luke Landes on Twitter. View all articles by .

{ 3 comments… read them below or add one }

avatar mstein_88

Flexo,
Stay aggressive. I’m up 16% YTD in my 401k and am in 100% stocks. My small cap and international funds have been fanatastic, but everything’s pretty hot right now. Who knows how long it’ll last but — as you said — you’re in it for the long term so can handle the fluctuations.

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avatar Brian

I’m doing 85% stocks for the moment. As you and the other commenter said, I still have a long way to go before drawing the money, so I can handle the fluctuations.

That being said, I’ve been tempted to switch the international exposure in my portfolio to domestic stocks. I just can’t see how they can continue their current growth for much longer.

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avatar Lazy Man and Money

Yep, stay aggressive, you’re too young to really think conservatively.

However, if you find it fun to try to time the market (and if it gets it out of your system), perhaps you could occassionally take 1% out of in each fund and put it into a bond. When you think things seem favorable put that 5-10% back in play. It probably won’t make a huge difference on your bottom line, but it’s better than doing it with large sums.

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