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I've been talking a lot about retirement lately, and it just so happened that I got my 401k statement in the mail this week. Imagine my surprise when it showed my rate of return in the positive. For those of us who are new to this type stuff, rate of return is basically the percentage your money is earning. Not only was mine positive, but it grew at a 16% rate over the last 3 months. This means the $5,550 I had, grew to $6,400. That's a gain of $850 in 3 months, and I didn't have to do anything.
Now, while the last 3 months have surprised me, let me say it hasn't all been good. Overall, in the 3 years I've had my account I've actually lost about $1,300. But, my employer has put in over $3,000, so really I've gained $1,700 that I otherwise wouldn't have had. My rate of return for this year is 8%, which is consistent with past years, prior to the recession. If it continues at this rate I'll be a millionaire or close to it by the time I'm 65. I can't say enough about how important it is to save and invest. And the age you start, makes a huge difference. So don't put it off.
I realize when investing, there's no guarantees. I realize that. like so many people last year, I could see my entire savings wiped out right before I retire. But that's the risk you take. For me, right now it's worth the risk. When I get closer to retirement I'm sure I'll adjust what I'm investing in to some more stable alternatives. But where else can you gain $850 in 3 months for doing nothing.
Has your mind changed about investing since the stock market took a tumble? Do you have any investment tips?
Now, while the last 3 months have surprised me, let me say it hasn't all been good. Overall, in the 3 years I've had my account I've actually lost about $1,300. But, my employer has put in over $3,000, so really I've gained $1,700 that I otherwise wouldn't have had. My rate of return for this year is 8%, which is consistent with past years, prior to the recession. If it continues at this rate I'll be a millionaire or close to it by the time I'm 65. I can't say enough about how important it is to save and invest. And the age you start, makes a huge difference. So don't put it off.
I realize when investing, there's no guarantees. I realize that. like so many people last year, I could see my entire savings wiped out right before I retire. But that's the risk you take. For me, right now it's worth the risk. When I get closer to retirement I'm sure I'll adjust what I'm investing in to some more stable alternatives. But where else can you gain $850 in 3 months for doing nothing.
Has your mind changed about investing since the stock market took a tumble? Do you have any investment tips?
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