What kind of 12month return should I expect on my 401k?

[Cutter]

I am 29 y/o and deposit a healthy 15% (+4% match) every pay check. How do I know if I am allocating the right amount of money in the right funds? What is a reasonable expectation on a 12month return?

Here is last years performance. Is this about average? above? below?

http://www.lan-lord.net/401k_return.jpg

And here are my allocations if anyone is interested or can make sense of it.

http://www.lan-lord.net/401k_allocation.jpg

Any comments? suggestions? or insight? I felt 13% was pretty good.. but I honestly dont know what is a reasonable expectation.

[-JAW-]

First off, I commend and salute you for being such an active investor at your age! Oh the JOYS of compound interest you will know in 25 or so years! I also did the 15 & 4 % when my company started a 401K, but I only had six years and being older invested more conservatively. Still, I topped out at over $140K when I retired.

The only fund that you list that I know is The Templeton Foreign Fund, and it is not one of my favorites. My plan is with Fidelity and I average 7 - 8 % with a much more conservative portfolio. ~ I'd keep doing exactly what you are doing and follow the accepted wisdom of gradually switching to less aggressive funds and then into bonds and the money market funds as you near retirement.

If you have even more money to invest you could also start a Roth IRA. I did this, investing in world energy and resource funds and doubled my money in five years.



:rybka:

[ptfisher]

You are on the right track investing early...just remember the finishline is retirement. You'll be ahead of your friends. Take a little less expensive car/house and skip a couple of happy hours. It all adds up, and adds up BIG over 20-30 years.

The Europacific fund you have 30% of your portifilo in is a good agressive move at your age. I know nothing of that specific fund, but Asia is going to be a high growth (risk) market for a while. There are hundreds of funds, it's impossible to keep up with them all.

?'s

I don't see any REITS ( realestate ). Maybe 5-10% of your portifilo should have some.

Do you have kids? If so think about a 529 for college. This will cover books and tuition...not room and board.

Sorry I can not answer a direct question on the funds...just too much research involved. 13% is a healthy return. I would expect even more this year.


PT