How's your 401k doing?

[Pototan]

Remember a few years ago when the Trump cultists would proclaim, nearly daily, "how's your 401K doing". That was a way of praising Donald Trump, pre-pandemic. At the time, the Dow, S&P 500 and NASDAQ were doing well. Of course, Trump finished his term in Herbert Hoover territory, but, as usual, the Covid excuse for a poor economy is only an excuse for Trump. Coming out of the pandemic with supply chain disruption and a yearlong, worldwide inflation rate, well, that's all on Biden.

Back to the point. The lowest unemployment rate in 50 years. The strongest GDP and lowest inflation rates of any G7 nation in the world. And a record setting stock market that is approaching a Dow 40,000.

You see, for a 71-year-old, I have a great memory, so I remember everyone who told me that back when Trump was President. Well, they now hear the same words from me, now that Biden is.

https://www.marketwatch.com/livecoverage/stock-market-today-dow-futures-up-more-than-100-points/card/dow-s-p-500-on-pace-for-best-week-of-year-zksdn4UD5j1jGSEGyp3V?mod=mw_quote_news

[MichMan]

1. Mine has been pretty flat overall

Diversified with bonds which have been performing poorly compared to stocks. Inflation and high interest rates are not favorable for bonds.

The DOW is relevant only if you have some of those specific 30 stocks. I have no idea if my portfolio is invested in any of them or not

[Lochloosa]

5. I keep mine in S&P 500 Broad Index. 16.1% YTD

[llmart]

21. Me too.

I don't play around moving money around. I just keep it there and I don't use a financial planner - never have. Last year even after taking out my RMD for the year, I ended up with more money than I started the year with. That boggles my mind. I never take my dividends which have been very high for a couple years. I just let them roll over into my fund.

[617Blue]

43. YEP. Going gangbusters.

[NewHendoLib]

11. I've got mine in a dozen mutual funds managed in Schwab - up 90K in 2024

I am very, very happy.

[yellowdogintexas]

59. mine is with Schwab also and it has been performing excellently

I have another 401k and a managed fund with Edward Jones and both are in great shape .

[NewHendoLib]

61. I have a SEP IRA with T Roth - also doing very well.

Holding off another year and a half - taking SS at 70. Somehow we are managing to do that - my wife took hers at 66 (full retirement).

We are super frugal - it's served us very well.

[W_HAMILTON]

24. "Mine has been pretty flat overall ... I have no idea if my portfolio is invested in any of them or not"

Yeah, might be a good time to either (1) get a financial advisor or (2) get a new financial advisor.

[Happy Hoosier]

27. Are you retired? less than 5 years to retirement?

If so, then fine. Otherwise, there's no reason not have a stock-heavy portfolio. The market will outperform everything else. The only reason to move to more conservative investment is when you want to pretoect yourself from a negative sequence of returns right before and early in retirement.

[MichMan]

32. Been retired almost 3 years.

Based on advice here, I should fire my advisor asap and move fully in higher risk stocks. Probably a good idea to dump all the bond funds and lower risk investments as I can't afford to fall so far behind inflation. I have a meeting with him Monday.

This YTD return is 13.5%, but last year was only 3.5%.

[Happy Hoosier]

34. That's pretty low performance.... buuut....

Of course, conservative investments do narrow the range of results in both directions.

TBH, you're probably okay for now.... you aren't reaping the very good returns right now... but you also probably lost less in 2022. The sequence of returns is super important in long term retirement performance, so protecting yourself in 2022 probably wasn't a bad thing. If you're satisfied with your withdrawal rate income and lifestyle, there is probably no reason to get more aggressive now. Do you care to share what you asee as your Safe Withdrawal Rate (SWR)? A rule of thumb is 4%, but with the first three years in the can, you can probably do higher than that, depending upon your goals.

[MichMan]

35. My spouse is still working, so between that and SS, I only withdraw 0.5% a year

I wasn't anticipating inflation to be at the highest level in decades, greatly affecting the performance of bonds. Based on the Treasury statements in 2021 that it was transitory, I didn't make changes when I should have.

[Happy Hoosier]

38. Well, when she retires, you can probably withdraw more aggressively.

I've never been a huge fan of bonds. They stop you from losing a ton, but the cap on the upside is pretty hard. Still, if you HAVE to preserve the principal.... They do the trick. A year before my daughter graduated high school, I moved her college account to bonds, because preserving principal was the most important goal. At least for the moment, I think we'll get her through school without debt, so... mission accomplished! So sometimes, there are things more important than lots of upside.

I'm a bit surprised your advisor didn't suggest at least some shift in your portfolio to take advantage of the rally. Are they in the camp who thinks it's a bubble?

Also, some advisors are pretty dogmatic about ultra-diversified holdings, especially for retirees.

[Walleye]

2. At the beginning of the Covid pandemic, when Trump held a press conference to close things down

And the stock market went through a stomach-turning drop. That was when he decided that he could ignore the pandemic because he knew the stock market dropping would ruin his reelection chances. It was always about his reelection.

[Lochloosa]

3. Just checked. YTD rate 16.1% Thanks Biden

[walkingman]

4. My IRA is doing great - thanks Biden!!

[honest.abe]

6. Hey Pototan! Yes, my 401K is doing quite well lately.

Im sure Republican's investments are also doing well but they will never admit it.

[ClimateHawk]

7. Mine is doing well

YTD rate = +5.33%
1-year rate = +18.04%

[Johonny]

8. Up huge since the Con left. Bonds still suck

Hopefully the bond rebound finally happens second half of year

[Hamlette]

9. here's a 5 year chart for Dow and Nasdaq

https://finance.yahoo.com/chart/%5EDJI?showOptin=1#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

Nasdaq sorry you have to click on 5 year or Max to see what it's been doing
https://www.nasdaq.com/market-activity/index/comp

Edited to add: I chose the most aggressive mutual type fund my employer offered. I started putting away money 45 years ago. It is worth 6 times what I put in. I know you think of stocks as being for rich people but if you're careful (I check mine almost every day) you can have a fun nest egg for retirement.

[Yavin4]

10. +23% over the past three years

+12% YTD

[Kaleva]

12. Not all of us are wealthy enough to have a 401k

Getting by on SS is what some of us do.

[OldBaldy1701E]

19. And, some of us don't even have that! (n/t)

[W_HAMILTON]

25. There's lot of people that have 401(k) and aren't wealthy.

And despite the worldwide inflation problem, these are some of the best economic times for people that "aren't wealthy" because of the hot jobs market and rising wages (especially on the lower end).

Source: https://www.epi.org/publication/swa-wages-2023/

[Happy Hoosier]

33. My sister makes less than $30K yr. Still has a 401K

She is terrible with money. Always has been. ALWAYS makes the "instant gratification" decision... but I DID convince her to contribute to her 401K to the full-match level. She won't have much, but she will have some. This was after my Mom convinced her to dump her 401K after the DotCom bubble burst. Ugh. My Mom was even WORSE with money.

[Kaleva]

54. I just took on a part time job

They knew I was disabled but they were desperate to fill the position so I got hired. My back hurts, I feel run down and I sometimes get severe leg cramps at the end of the day but I need the money as SSDI alone really limits what I can do .

The big plus of this job is that my hours are really flexible. As long as the work gets done, I'm free to set the days I work and for how long.

[NanaCat]

51. A majority of Americans don't have access to a 401k

Fact

[Kaleva]

55. I don't doubt that.

[progressoid]

13. What's a 401K?

Oh, like an investment.

Yeah, I had a couple of those.

Self employed, business slumped, pandemic.

Now I don't have them cuz I had to spend them to keep alive.

[Emile]

14. I was losing money with Trump, now I'm doing great.

The only one worse off today than they were four years ago is Trump.

[onenote]

70. Most 401K plans did quite well during the Trump years.

Pretty much everything Trump did while in office was horrific. But you won't convince people that they did poorly in the stock market during his term. Even with the pandemic "crash" in spring 2020, the stock market had recovered ny election day 2020 to the point it was up 50% over its November 2016 level, and comparing inauguration day 2017 to inauguration day 2021, it was up over 57 percent.

[TalenaGor]

15. up 17% :D

[IronLionZion]

16. Biden's leftist job killing socialism has been working out pretty well for the stock market

Corporate profits are at record highs in spite of all the socialism. If I gave up my freedoms for this, it's worth it.

Dems are better for the economy than Republicans going back decades. The GOP doesn't have anything to run on. They're claiming the solution to inflation is to keep out migrant workers who grow, pick, and process our food. And the solution to the labor shortage is what? To give massive tax cuts to the rich "job creators" to trickle down all over us?

Tax cuts and immigration bans are going to supply us with labor and lower prices only in the imaginations of idiots.

[Aviation Pro]

17. 401K - 15.3% 1 Year, 19.8% since Nov. 2023

Diversified with a curated set of securities (mostly tech) and a savings account paying 4.5% currently with no penalties for withdrawal.

[Nasruddin]

18. Election would be over

If my portfolio was voting, the election would be over right now. No point in changing course.

It was doing mostly ok under Trump, tho. Until that last bit. And under Obama, for that matter.
The less said about Bush, the better.
Presidents are only one part of the stock market story.

[Martin68]

20. I don't have a 401K because I didn't work for a big company. I invested in two firms that had index referenced

investments, and they've been increasing at well above the rate of inflation for years. I have nothing to complain about.

[Shermann]

22. 2022 was a rough year for the 60/40 portfolio but I've clawed my way back.

Dow 40000 here we come!

[IronLionZion]

26. 2024 is a great year to rebalance

as in transfer some of the stocks over to bonds to get back to the 60/40 split if that's what you want.

[MichMan]

36. I posted the same thing about the poor performance of bonds, only to be told I should fire my advisor

[IronLionZion]

39. Bonds are cheap now, it's a great time to buy bonds while interest rates are high

and bonds are one sector that benefits from active management since it's directly tied to interest rates. It's easier to adjust sector weighting by duration and predict future based on Fed rate decisions.

Stocks are what gets all the media attention but now is the time for bonds.

[MichMan]

42. I was advised upthread to fire my advisor because I was invested in bonds, and got disappointing returns

Now, I should tell the new advisor that I should have more in bonds? Why am I firing the first one then?

[IronLionZion]

44. Stocks are high, bonds are low. It's simply buy low and sell high

Don't sell your bonds when they're low. That's a common mistake. Just collect the interest income if you can live off that.

[Shermann]

47. Some financial gurus like Dave Ramsey recommend 100% equities at all times

If you have his net worth and can weather a 20% hit or more every few years, go for it.

Bonds took a hit like that in 2022, but that is rare for bonds.

I haven't given up on bonds but have settled at a 70/30 mix. In retrospect I had a false sense of security at 60/40. 2022 rocked me.

[sybylla]

23. I left the stock market behind when it rallied after the Dobbs decision.

I won't ever be going back. I had my meager funds in SRIs, but even those had shares of Monkeysoft and BookFace just to keep them from fluctuating too direly.

I know. My loss. I refuse to invest in a blatantly heartless institution. Congrats to those who don't give a fuck.

[Happy Hoosier]

29. It's not a matter of not giving a fuck.

It's a matter of lving in the world we have. I want to have a retirement. I want to be able to support the people and causes I love. I'll actually be in a position to max out my donations to Biden/Harris this year. I've never been able to do that before.

[Happy Hoosier]

28. Up 20% year over year.

Right now, I have my entire stash in a Low cost Vanguard Total Market Index Fund. I'm riding this rally. I expect it'll cool in the summer and I'll diversify a bit, just to soften some slumps.

I technically crossed over the 7-figure net worth number, but a lot of that is home equity.... my house is paid off in 3 years. Still... it's been a great year.

[SKKY]

30. +21% average over the past 3 years...

...Dark Brandon got my shit on fleek!!!

[LeftinOH]

31. At this very moment - it's the highest it's ever been.

[bif]

37. Kicking butt!

It's in several Vanguard funds. It's been flat until recently. It's been climbing steadily for the past year.

[DFW]

40. No earthly clue

From what I understand, I can't touch it while I'm still working, so whatever it's worth doesn't mean a lot to me for the moment. I should probably look (if I remember how!), and then see if I can find out what it was the last time I looked. I'm sure it's fine though. Everything else seems to be, so why shouldn't this be?

[honest.abe]

41. If you are over 59 1/2 you can withdraw without penalty but you have to pay tax.

You can also borrow without penalty and then pay yourself back.

[Shermann]

48. There is also the Rule of 55

If you turn 55 (or older) during the calendar year you lose or leave your job, you can begin taking distributions from your 401(k) without paying the early withdrawal penalty.

[Jimbo S]

45. Highest ever

Not to be a braggart, but you asked.

I couldn't tell you off the top of my head the ROI under Biden v Trump v Obama, but now I'm curious.

I realize the office holder has a minimal effect on performance, still nice to know.

[Silent3]

46. Mine is doing great! I retired about seven months ago...

…and I now have a good bit more money in my account, despite now making monthly withdrawals.

[Pototan]

49. Same here

retired 2 years ago

[NanaCat]

50. And the majority of Americans reply

What 401k?

Because the majority of working Americans have zero access to a 401k through their workplace.

[Shermann]

52. FALSE

A majority (56.6%) have access as of 2023.

https://www.hicapitalize.com/resources/401k-account-access-statistics/

That's not a great number, but it's not been a minority for several years. Biden's SECURE Act for the win!

[NanaCat]

57. Correction on your correction:

About 69 million workers, or 56% of the nation's workforce, lack access to a retirement plan through their workplace, the Economic Innovation Group found in its analysis of 2021 Census data. The share is highest in Florida, where almost 7 in 10 workers are unable to put money away in an employer-sponsored plan, and lowest in Iowa, where it is about 4 in 10.

https://www.cbsnews.com/news/retirement-plan-access-states-where-it-is-worst/

2021 is too recent to qualify for 'several' years ago, so it's only been quite recently that the numbers have improved.

[Shermann]

62. Thanks for that clarification, super helpful. nt

[codfisherman]

56. Disbelief

Although I have just recently been offered a 401k, I do not have one. I do have some very attractive tulips blooming just now, if anyone is interested I will take bids on the bulbs.

[NanaCat]

58. Love tulips

But they're a PITA to grow in my region.

[codfisherman]

60. Piedmont of NC

I put in bulbs for about three falls in a row ten years ago. Depending on our late winter early spring weather they can be glorious. This is one of the good years, along with the snow drops and forsythia.

[NanaCat]

68. Lucky!

And lucky that you have a green thumb, unlike my solid black one.

I can grow weeds--if I leave them alone. That's it.

[MichMan]

64. Anyone can open an IRA and contribute to it

You don't need an employer sponsored 401k to build retirement savings

[gibraltar72]

53. More important to me

my sons' scholarship fund has been able to increase amount and number of scholarships.

[RSherman]

63. My friends were complaining about their 401s two years ago under Biden

This is the same time when the Trumpers were putting those "Biden did this" stickers on the gas pumps.

Well, my 401 has rallied and is doing great. This same friend told me she paid $2.87 for gas a few months ago.

And not one comment did she have to make about her hypocrisy. Blame Biden when things are bad and no credit when things are good. (and yes, I understand the argument that presidents inherit their economies and don't really have a lot of control over gas prices. Still....)

[KS Toronado]

67. .

[petronius]

66. No 401K, IRA plus various money market funds (Vanguard): +15.6% over 1 year, +4.1% over 3 years

And I've steadily increased my regular contributions as my salary has increased...

[onenote]

69. I'm also 71, but my memory differs from yours.

To be sure, unemployment has come way down from its pandemic-related peak during Biden presidency and a year ago it hit its lowest level in over 50 years. We definitely should be touting that, even if it has ticked up a bit in the few months. But it wasn't at "Herbert Hoover" levels when Trump left office -- it was around 6.7% (compared to over 20 percent during Hoover's administration).

And while we should be happy with, and also touting the Dow Jones' performance the past 3+ years and its impact on 401K plans, again the actual numbers tell a different story than your post. Depending on whether you measure from election day 2020 or inauguration day 2021 to today, the market is up either 43% or 24%. That's a great performance, but from election day 2016 to election day 2020, the market was up 50%. And from inauguration day 2017 to inauguration day 2021, the Dow was up 57%.

It doesn't do any good to fudge the numbers with comparisons. Better simply, as you do in pointing to GDP and current unemployment, to focus on how well we're doing, not whether its better than the previous four years.

[Pototan]

73. The only 2 presidents to leave office with fewer...

...Americans working (fewer total jobs) in the past 100 years are Herbert Hoover and Doanld Trump.

[Shermann]

71. 1-year rate of return is +15% nt

[yardwork]

72. At my age, most of my retirement is in safe mode.

But yes, several of the smaller accounts I'm invested less safely are up, recovering nicely from 2020. If I were twenty years younger I'd be very pleased.

And I don't forget what W did in 2008, either.