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Stockmarket at record levels, but 401K lags behind
Posted by: Buck
Date: July 12, 2019 04:01PM
I thought the 401K would show more gains. I guess I need to change a fund or 2.
Our company uses Vanguard with 30-40 funds to pick from.

I don't want to retire yet anyway.
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Re: Stockmarket at record levels, but 401K lags behind
Posted by: space-time
Date: July 12, 2019 04:08PM
that means you have a more conservative mix. When market goes down, your 401k will also go down, but less.

When you are young, take more risks (more stocks). Then 401k should almost follow the market. As you get older, shift some of those funds into bonds. Then you will not see the same huge gains like in the stock market, but are also somewhat protected from large market drops.
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Re: Stockmarket at record levels, but 401K lags behind
Posted by: clay
Date: July 12, 2019 04:15PM
what funds do you have? Not everything tracks the market like a total market index fund. Also, fees will have a drag on performance. Know what you're paying fee-wise? Expense ratios? Management fees?

bogleheads.org is a great resource for financial stuff.
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Re: Stockmarket at record levels, but 401K lags behind
Posted by: Acer
Date: July 12, 2019 04:29PM
The stock market has been approaching and receding from the very same peak for the last year and a half. Current all-time highs are just a smidge past the all-time highs in January 2018.
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Re: Stockmarket at record levels, but 401K lags behind
Posted by: NewtonMP2100
Date: July 12, 2019 04:36PM
.....the 500 Index.....U.S Growth.....Primecap........are some of the funds that I have @ Vanguard and they have gone up.........



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Re: Stockmarket at record levels, but 401K lags behind
Posted by: tortoise
Date: July 12, 2019 05:08PM
Quote
Acer
The stock market has been approaching and receding from the very same peak for the last year and a half. Current all-time highs are just a smidge past the all-time highs in January 2018.

Very astute observation, I just checked my spreadsheet and my collection of funds at Vanguard is almost exactly where they stood back in January of 2018. Of course I have been withdrawing my RMD during that time so actually there is a small gain, but as the Bard would say "much ado about nothing".
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Re: Stockmarket at record levels, but 401K lags behind
Posted by: IronMac
Date: July 12, 2019 08:50PM
YTD I am up 39.19% in my US portfolio.
12-month is just over 18%

My portfolio is all stocks.

If you're not matching or beating the underlying index, you need to find out why and rectify the situation.



Edited 2 time(s). Last edit at 07/12/2019 08:54PM by IronMac.
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Re: Stockmarket at record levels, but 401K lags behind
Posted by: freeradical
Date: July 12, 2019 09:17PM
Quote
IronMac
YTD I am up 39.19% in my US portfolio.
12-month is just over 18%

My portfolio is all stocks.

If you're not matching or beating the underlying index, you need to find out why and rectify the situation.

Yeah, I just checked my Vanguard index fund's annualized returns.

YTD: 18.53%

1 Year: 10.38%

3 Year: 14.15%
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Re: Stockmarket at record levels, but 401K lags behind
Posted by: IronMac
Date: July 12, 2019 09:38PM
Quote
freeradical
Yeah, I just checked my Vanguard index fund's annualized returns.

YTD: 18.53%

1 Year: 10.38%

3 Year: 14.15%

My broker uses S&P 500 Total Return as the underlying index so:

YTD: 20.97%
1 Yr: 10.35%
3 Yr: 49.11%

My return at 3 yrs is 82.67%.
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Re: Stockmarket at record levels, but 401K lags behind
Posted by: IronMac
Date: July 12, 2019 09:44PM
Quote
Buck
I don't want to retire yet anyway.

This is the wrong attitude to take. You yourself may not want to retire anytime soon but you don't know what the future holds. I didn't want to retire at 48 but my wife's ill health necessitated it in order to care for her.
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Re: Stockmarket at record levels, but 401K lags behind
Posted by: Forrest
Date: July 13, 2019 12:07AM
You should investigate why your funds are not performing well.

For reference, Vanguard Wellington (2/3 stocks, 1/3 bonds) year to date performance is 14.18% according to VWELX

Vanguard Wellesley (1/3 stocks, 2/3 bonds) year to date performance is 10.91% according to VWINX
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Re: Stockmarket at record levels, but 401K lags behind
Posted by: NewtonMP2100
Date: July 13, 2019 07:20AM
....you should also be invested mostly in stocks.......particularly in your younger years.........100% at the beginning......as you get closer to retirement......move more toward income related and bonds....



_____________________________________

I reject your reality and substitute my own!
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Re: Stockmarket at record levels, but 401K lags behind
Posted by: ztirffritz
Date: July 13, 2019 08:55AM
Primecap and 500 Index have been good to me over the years. I don’t think Primecap is accepting new investors though.



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Edited 1 time(s). Last edit at 07/13/2019 08:56AM by ztirffritz.
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Re: Stockmarket at record levels, but 401K lags behind
Posted by: NewtonMP2100
Date: July 13, 2019 08:59AM
......I believe Primecap is closed to investors but still available as option in 401K.........but I could be wrong......many funds will close to open investors but remain as 401K options....



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I reject your reality and substitute my own!
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Re: Stockmarket at record levels, but 401K lags behind
Posted by: bfd
Date: July 13, 2019 01:55PM
Any YTD for 2019 is misleading because of the huge slump last December. Many investors are just now recovering those losses… Go back three years and you'll really see how little things have changed.
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Re: Stockmarket at record levels, but 401K lags behind
Posted by: Forrest
Date: July 13, 2019 03:18PM
From my links above, Wellington cumulative return over the past 3 years is 32.21%
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