{ "media_type": "text", "post_content": "Are 401k’s really worth investing in these days? What are the % returns you guys have been seeing for the last few years? For those that have been working before 2008, how much of an impact did the housing crash have on 401k and how much did the recent COVID pandemic affect it?", "post_id": "5f01e9ee7af6eb002074af50", "reply_count": 17, "vote_count": 1, "bowl_id": "5ba190cc97fae100172e39c1", "bowl_name": "Firm Benefits" }

Are 401k’s really worth investing in these days? What are the % returns you guys have been seeing for the last few years? For those that have been working before 2008, how much of an impact did the housing crash have on 401k and how much did the recent COVID pandemic affect it?

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401k is a tax policy, not an investment. You can invest in whatever securities you want within a 401(k) eligible account.

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There is literally no possible way to answer that question without you providing your intended investments. You could have bought all Hertz stock in your account 2 years ago and it would be worthless today. Or you could have bought all Tesla and would be retiring now.

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I’m not trying to be snide but there is not a default mix. I’m just trying to convey that very few people’s 401ks will be similar. There are so many factors that come into play. You are basically asking if investing is worth it these days. I think yes because your cash will erode to nothing sitting in a checking account. 401k provides a tax advantage. But your contributions, contribution frequency, and selected investment mix are the main factors. Maybe post in the Accenture bowl to ask people about the “default mix” that your accounts have

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I definitely got dumber trying to understand OP’s question. Is tax free money with employer match still worth it? I’m going to go ahead and say it is OP

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OP we have access to VIGIX that shit has the best growth of any mutual fund and lowest expense ratio. I’m 💯 in it and it has given me 18% return. Yolo if you’re still young.

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I’m just talking about the default avg Growth % of 401k’s using the company default mix. I don’t know why you sound like you have to be snide. Did your 401k tank or something?

I want to get an idea of the general performance across many companies when they use the default mix. Not just Accenture’s.

I’m 26 and have only been investing through my 401(k) the past almost 3 years. I’m averaging an 18% return per year as of now. This is before my employer match, but includes dividends reinvested. My portfolio consists of 100% stocks.

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Up pwc1....there is no default per say that will be the same to each one. You choose the fund you want. If you are talking about SP500, then take a look at the historical performance. No one knows the future performance for 100%. Otherwise I would be retired by now

Annualized, my 401k has had 12.5% return over the past 5 years, and that doesn’t include the firm matching over that time. So I’d say yes, it’s definitely been worth it.

The answer to this question partially depends on the quality and cost of funds offered within the 401K... But yes it's generally worth it to invest within this specifically because it's a tax advantages account and there's usually an opportunity for free money invested when your company matches a certain portion invested. When they match that portion, it's the same as an immediate 100% return for that amount.

don't forget roth IRAs, they are a smarter investment IMO

The employee 401k program seems like a scam to shovel people’s paychecks directly into the hands of financial services companies like Fidelity. These firms squeeze fees out of the contributions, regardless of growth, cannibalizing growth, amplifying losses. And for what? Fund management? Who knows what happens inside that black box. But every quarter, those fees come out. The employee 401k program doesn’t seem to be designed for our benefit. It seems like a sad replacement of the pension plans of older generations, designed to feed financial services with mountains of capital from people they would not count as customers, were it not for the employee 401k program

If your firm matches your contribution you are literally getting FREE money, so yes it is worth it. The return that you would have to get elsewhere accounting for the match would be difficult to get. As has been said it also depends on your investment options and how the market performs.

I agree with your point about leaving free money on the table. And, that free money goes straight to Fidelity. Whether there is any free money for your capital returns after fees are taken is inconsequential. The result is to make sure that at least the financial services get the money, even if you never do

Thanks ACC1 this is the type of info I want to hear instead of the snobby BS some people here just spout.

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