Financial advice with retirement funds such as 401k, etc...

[F1980]

I set up my 401k awhile back and I havent checked in a long time, but I remember seeing my average return is something 6%. I think my investment is set on something like "moderate."

I never messed with settings other than contribution rate. I'm putting in 15% and the company matches 25% at 6% max.

It tells me I'm only getting $2k a month when I retire.

My co-worker set his 401k investment on "Aggressive," I think that's what the terminology they used on the website. I never messed with this, I'm not even sure how I can get to it. But he tells me his average return rate is at 20%.

Should I mess with this setting or should I just leave it alone? 6% seems kinda low.

 

[Get To Da Choppa]

I set up my 401k awhile back and I havent checked in a long time, but I remember seeing my average return is something 6%. I think my investment is set on something like "moderate."

I never messed with settings other than contribution rate. I'm putting in 15% and the company matches 25% at 6% max.

It tells me I'm only getting $2k a month when I retire.

My co-worker set his 401k investment on "Aggressive," I think that's what the terminology they used on the website. I never messed with this, I'm not even sure how I can get to it. But he tells me his average return rate is at 20%.

Should I mess with this setting or should I just leave it alone? 6% seems kinda low.

Higher increases also means higher decreases in downturn.

However the stock market has been decoupled from the economy since 2008, and is not a reflection of the state of the economy as the government would always bail out the stock market. If you are looking at a long time horizon, those bigger dips in downturn would be offset by the larger increases, such as the AI boom/bubble recently.

Keep in mind this is not financial advice. The only real advice I can give is

 

[Kung Fu Kowboy]

 

[Natural Order]

Right in the middle of rewatching that Netflix documentary on Bernie Madoff….

Sit tight!

 

[Goon Dog]

The best advice is to not listen to financial advice from people who spend their time posting on an overgrown karoddy forum.

 

[Cooz]

I set up my 401k awhile back and I havent checked in a long time, but I remember seeing my average return is something 6%. I think my investment is set on something like "moderate."

I never messed with settings other than contribution rate. I'm putting in 15% and the company matches 25% at 6% max.

It tells me I'm only getting $2k a month when I retire.

My co-worker set his 401k investment on "Aggressive," I think that's what the terminology they used on the website. I never messed with this, I'm not even sure how I can get to it. But he tells me his average return rate is at 20%.

Should I mess with this setting or should I just leave it alone? 6% seems kinda low.

Depends on your situation.

How many years are you away from retirement and are you counting on your 401k being your primary source of income?

 

[Beechwood]

It depends on your comfort level. Aggressive growth will grow more, most likely. 20% return sounds like the NASDAQ 100, which is heavily invested into AI company stocks. The moderate growth at around 6% isn't bad. You can get that with some bonds funds. Trump wants to see interest rates go down, which will help increase the value of your bonds, if that happens of course.

Sounding a bit like Wall Street firms that want your money, but there is some truth in this - we are in a unique time. AI technology has the potential to change our society, and with that drive the stock market much higher. No one knows for certain what will happen but a tremendous amount of money is being invested into AI. The money is likely to pay off in large amounts, and we're just in the beginning stages of the conversion of everything to AI.

Personally I'd be more aggressive at this time. That is just me though. You need to do what your comfort level is.

An article I read this morning that might be helpful ~

I Don't Know What Will Happen. No One Does

Weekly Market Pulse: It Ain’t What You Don’t Know

We are all interested in the future, for that is where you and I are going to spend the rest of our lives. Plan 9 From Outer Space I have no idea what will happen this year. Neither does anyone else. If this is your first time reading one of

alhambrapartners.com

 

[ricc505]

My advisor gave me a questionnaire and told me I'm the most risk adverse client he has. I don't want to get rich. I've been debt free since I retired and I make good money on my investments.

 

[Swamps]

Sselling pictures of your butthole on OnlyFans is a good retirement plan.

 

[SurferH2O]

I doubt he's getting 20%, but if he is, I'd like to talk to him. He's kicking my ass and I do pretty good.

If you get 7% you're OK... you get it up to 12%-14% you're doing very well.

 

[Bathwater]

Your investment mix might be based on your age. Depending on your retirement horizon it may be pretty conservative.

 

[Meatspin]

This is super dependent on age and risk tolerance.

 

[Cid]

The best advice is to not listen to financial advice from people who spend their time posting on an overgrown karoddy forum.

Fuck that noise. Dump all your money's into sherbro coin and become millionaires like the rest of us. Guaranteed 5000% return in 3 weeks. You can trust me, we're sherbros.

 

[Fedorgasm]

I doubt he's getting 20%, but if he is, I'd like to talk to him. He's kicking my ass and I do pretty good.

If you get 7% you're OK... you get it up to 12%-14% you're doing very well.

He probably got 20% one year and just locked that number into his memory. If you look at his 5 or 10 year return I'm sure it's less.

To answer the thread, generally the younger you are, the more aggressive you set it. As you get closer to retirement you lower your risk since you'll need that money soon.

Also, your 401k has funds set up for aggressive or safe... But the problem is they usually have high fees.

If your plan allows it, you could just throw all your money into an S&P 500 ETF and the fees would be so low it's like getting an extra 1% return.

 

[chardog]

My 401K returns are trash, i dont recall breaking 13% a yr on most aggressive. Last year, my individual portfolio did 25%.

Go most aggressive and start off with a roth ira

 

[Fedorgasm]

I just checked mine and I got 9.44% per year over the last 5 years.

It pisses me off that I can't see beyond the last 5 years.

I did hit 20% in the last 1 year, and 18% in the last 3 years, so I bet your buddy was looking at a 1 to 3 year range when he says he was getting 20%. Because 2022 was a terrible year for the market.

My account is considered risky simply because it's all in stocks. I don't have any bonds at all. I don't invest in risky stocks, but I guess it's going to be considered risky no matter what until I buy bonds.

 

[Stoic1]

Time in the market beats timing the market.

Hur hur huur hur

 

[Jack Reacheround]

Get a union job with a pension and employer matching contributions to retirement. Those are rare these days. The didn’t used to be.

But just remember that a 401K relies on the health of the stock market. It’s like taking your retirement savings to a casino.

This is what America has become.

So, my advice is the aforementioned job. Also, buy a house.

Elderly people used to almost all die in poverty in the US. Then FDR came along and said “what is this shit?” So he created social security.

But social security is only supposed to be one leg of a three legged table for retirement. The other two are supposed to be your pension, and home ownership (homes usually appreciate so you can sell yours and downsize in retirement).

But the Marc Andressen’s of the world hated thst there was all that money that he wasn’t allowed to gamble on stocks. So they made sure to demonize unions and pension jobs in the US over the past 40 to 50 years, and made people rely on the 401k, which was supposed to be purely supplemental when conceived.

We all saw how that worked out after 2008.

 

[cincymma79]

I set up my 401k awhile back and I havent checked in a long time, but I remember seeing my average return is something 6%. I think my investment is set on something like "moderate."

I never messed with settings other than contribution rate. I'm putting in 15% and the company matches 25% at 6% max.

It tells me I'm only getting $2k a month when I retire.

My co-worker set his 401k investment on "Aggressive," I think that's what the terminology they used on the website. I never messed with this, I'm not even sure how I can get to it. But he tells me his average return rate is at 20%.

Should I mess with this setting or should I just leave it alone? 6% seems kinda low.

dig through the funds and see one’s getting 10. an s&p fund will get you there pretty much. any fancier than that and i’d have to know a lot more. your fund should i’ve you access to a counselor of some sort. 10% after talking out the fees is doable. you can go safer close to retirement but you gotta ride the waves. just know once you have real money in there you can lose 80,000 in a week. ask me how i know. so you have to accept that and know you’ll get it back over time.

 

[DanSavage]