Comments on: Why I Continue to Believe in 401(k)s http://blog.smart401k.com/2009/02/20/why-i-continue-to-believe-in-401ks/ News, Views and Education on Retirement Investing and the Financial Markets from Smart401k Tue, 27 Dec 2011 13:01:08 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Scott H http://blog.smart401k.com/2009/02/20/why-i-continue-to-believe-in-401ks/comment-page-1/#comment-3977 Scott H Tue, 03 Mar 2009 22:53:08 +0000 http://blog.smart401k.com/?p=169#comment-3977 Larry, Apologies for the delay. Assuming the following: - an equal return each month - an investment of $350/month - you use the earnings on your new investments, but not the investment itself, to help you make up the losses You'd need a return of - approximately 32% annually to be made whole in two years - around 20% annually to be made whole in three years - slightly less than 15% annually to be made whole in four years - and less than 12% annually to made whole in five years If you invest $400/month instead of $350, the required returns would be a bit lower. Hope this helps and let me know if you have any other questions. Scott H Larry,

Apologies for the delay. Assuming the following:
- an equal return each month
- an investment of $350/month
- you use the earnings on your new investments, but not the investment itself, to help you make up the losses

You’d need a return of
- approximately 32% annually to be made whole in two years
- around 20% annually to be made whole in three years
- slightly less than 15% annually to be made whole in four years
- and less than 12% annually to made whole in five years

If you invest $400/month instead of $350, the required returns would be a bit lower. Hope this helps and let me know if you have any other questions.

Scott H

]]> By: Kevin http://blog.smart401k.com/2009/02/20/why-i-continue-to-believe-in-401ks/comment-page-1/#comment-3976 Kevin Tue, 03 Mar 2009 04:22:50 +0000 http://blog.smart401k.com/?p=169#comment-3976 That's it. I can't take it any more. This is no reflection on smart 401k I just started using them, about 6 months. However, I've seen almost 200k turn into 98. Every talking head in the media is flat out saying "pull your money out now!. It will be better to miss out on some of the up side than to loose it all now". I'm placing the order to move my holdings into the money market account in order to protect it without tax problems. I believe it will execute sometime before the close tomorrow. That’s it. I can’t take it any more. This is no reflection on smart 401k I just started using them, about 6 months. However, I’ve seen almost 200k turn into 98. Every talking head in the media is flat out saying “pull your money out now!. It will be better to miss out on some of the up side than to loose it all now”.

I’m placing the order to move my holdings into the money market account in order to protect it without tax problems. I believe it will execute sometime before the close tomorrow.

]]> By: Larry Spencer http://blog.smart401k.com/2009/02/20/why-i-continue-to-believe-in-401ks/comment-page-1/#comment-3960 Larry Spencer Tue, 24 Feb 2009 03:03:50 +0000 http://blog.smart401k.com/?p=169#comment-3960 Scott, Over 18 months, I have watched my retierment balance deminish from $140000 down to $75000 as of today. I too believe in dollar cost averaging and that is why I haven't bailed. I am currently contributing around $350-$400 with no match from my employer. Assuming we are now at the bottom(which may not be);What rate of return would we have to perform at to recover everything over the next two years? Scott,
Over 18 months, I have watched my retierment balance deminish from $140000 down to $75000 as of today.
I too believe in dollar cost averaging and that is why I haven’t bailed.
I am currently contributing around $350-$400 with no match from my employer.

Assuming we are now at the bottom(which may not be);What rate of return would we have to perform at to recover everything over the next two years?

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