I just logged on to my wife’s 401(k) account. The balance is roughly $60,000 less than it was at the peak early this year (and this includes several thousand dollars of contributions). OUCH. Fidelity calculates a personal rate of return, which is the return adjusted for the timing of contributions. Our personal rate of return is -12.2%. If the trend continues through the 3rd quarter, it will mark the second year for a negative personal rate of return since 2005 (the first year we started getting personal rate of return information from Fidelity). Here is our allocation (aggressive) and history if you’re interested:
Bottom line: I’m not worried. We’re still in for the long haul.