So my 401k performance YTD is just under 4%. Looks like current S&P 500 is just under 8%. Since I’m closer to retirement, my mix is about 55/45 equities/bonds. Most equities are large cap since my 401k’s mid-cap options have always been pretty weak. Am I doing something wrong or does that performance for such a mix sound about right? Retirement is about 5-7 years away if all goes well (but there’s no guarantee with AI these days.)
401k YTD performance
byu/Legitimate_Double782 inpersonalfinance
Posted by Legitimate_Double782
4 Comments
It’s about right. Some people choose to stay in stock longer but they risk putting off retirement due to an economic downturn. Depends upon a number of other factors including how long you expect to be retired.
> my mix is about 55/45 equities/bonds.
Then you can’t compare to S&P 500.
Take your 55% equities and assess performance on that separately. Use that to compare to S&P 500.
You only have about half of your money in the stock market so it makes perfect sense that your return is about half that of the stock market.
If you held more ex-US or US value, you’d be par for the course with the Sp500 or slightly beating it.
I am up 7.58% YTD with a 37% ex-US (5% of which is emerging markets) and 28% US value. I’m only holding about 7% SP500.
Retirement is a lot further away for me, but I refuse to invest in that which I do not understand and the valuations of the SP500 is exactly that to me.
If you’re on pace to hit your goals, that’s good. Total return isn’t the sole metric for investment. Preservation of capital is a prudent trade off in your situation