As we evaluate the losses experienced in 401K accounts in 2022, it’s essential to consider the various factors that have contributed to this outcome. The performance of 401Ks can be influenced by both macroeconomic trends and individual investment choices. Here are some of the key factors impac...
Finally, we do have to make some assumptions about saving. Remember, net worth is all about assets minus debt. But income plays a huge role and how much income is saved and how much debt is paid off really makes a difference. For the "average" millennial, I'm going to look ataverage...
Most employers will match 401k contributions. That's free money they're offering towards your retirement. Let's say your employer matches up to 5%. That means if you contribute 5%, then you're automatically saving 10% of your income for retirement. If you can, open a separate tax-...
As a result, I suspect more money will flow into less volatility, income-generating assets like real estate to help preserve capital. Below is a great updated chart that shows the daily returns of the S&P 500 index in 2020, 2021, 2022, 2023, and 2024. Notice how much more volatile stock...
But in this context “average” is not in the middle, it is the performance of the all the stocks in an index. Professional managers are measured against how well they do against this return. In any given year, and of course this varies year to year, 80% of actively managed funds unde...