Retirement savings vent

kmh2201

I just have to say this, because it's so frustrating.  I've been working full time in my career for 10 years, and I've contributed 6% to my 401k for 10 years.  When I divide my current retirement savings account balance by 10, the amount ($5,200) is less than what I have contributed to my account each year for the past 5 years (not including my employer contribution).  That SUCKS.  Back in October 2008 I lost half of my savings balance due to the stock market "crash", but my goodness it feels like I should have a much higher balance than what I currently have.  I feel like everytime I look at DH's retirement savings account balance, it gains a couple thousand dollars.  (And I check our balances every few weeks.)  I'm seriously going to set up a new savings account at my credit union and just start putting some money in that per paycheck.  At least they can't take the interest back after they give it to me, and it won't lose value due to market.  I like to think of that as retirement planning/savings diversification. 

Misery loves company...anyone else have the same/similar frustration?

kmh2201

Thanks, @emmyg65!    My current investment fund mix would be considered "aggressive" and high risk for loss.  I have about 30-35 more years until I retire, so I'm also a long ways off from retirement.  I review my funds once a year using the tool provided through Voya (formerly ING), and rebalance each quarter.  Retirement and financial advisors always say it's good to buy when the price is low (i.e., a down market) so that you have more shares when the price does go up.  It's just depressing to feel like my account isn't going anywhere. 

2chatter

I just reviewed the allocations on mine - the aggressive fund is returning less than 1% more than the moderate fund, so I downgraded to decrease the risk.  I can change that any time, so I will reevaluate.

Iblamethebeer

Maybe I'm doing the comparison math wrong but that sounds really off to me, especially if you have an employer match on top of your contribution. 

Have you checked whether you have unusually high fees?

DiveFrog

My return this year has been running about -1%, but historically I've had years where it has been +15-18%. As you have, I positioned fairly aggressively due to my age. overall I have been very pleased with my results. I will say the first 7-9 years it didn't feel like I was getting anywhere! but eventually the exponential growth seemed to really kick in. I still don't have much confidence that we will save enough, but all we can do is put away as much as we can without sacrificing to much of the life we want to lead now.

Beevol

My accounts are pretty volatile right now because I am in a high risk fund (I also have 35+ years until retirement). I check in on them once a year and otherwise pretend that they're not there because otherwise it would freak me out too much. You might want to see if you can speak with a financial advisor with the bank that manages the company accounts to see if there is a better option for you (either with regards to returns or with regards to fees). 

CarrieB.

Are you sure that you are looking at your statement correctly?

I would ask HR for assistance. They should be able to explain your statement to you, show you your returns, your balance, your allocations, etc. or they should be able to direct you to an 800# or a contact at your retirement plan provider that can help you.

And yes, a lot of people lost a lot in 2008, but if you've only been investing for 10 years, that was like what 4 years of savings? Most people should have made that loss back up since the market came back. Look at your ten year return.

ColoradoBoat

Agree with others here that as a young person u should have made up for your losses. The last year or 2 have really helped me. Make sure ur fees aren't too high and change if needed.

kikimeemee

Hmm... Those numbers are not what I'm experiencing. Hubby and I have decent returns on our Roths and 401ks as aggressive investors. Maybe you should see a good financial advisor to review your portfolio. I've had my 401k and Roth since 2006 and even with the crash I've had some decent returns.

Props to you for actually watching your accounts. Also, visit suzeorman.com to get some tips from her!

kikimeemee

CarrieB. said:

Are you sure that you are looking at your statement correctly?

I would ask HR for assistance. They should be able to explain your statement to you, show you your returns, your balance, your allocations, etc. or they should be able to direct you to an 800# or a contact at your retirement plan provider that can help you.

And yes, a lot of people lost a lot in 2008, but if you've only been investing for 10 years, that was like what 4 years of savings? Most people should have made that loss back up since the market came back. Look at your ten year return.

Definitely call the 800# as I'm in HR and there is no training for us on reading statements or offering advice. In fact, we are not supposed to offer any suggestions since HR personnel are not advisors. However, your 401k company likely has advisors