401k and Personal Finance

Q1 2009 Results: 401k and Rollover IRA

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They are all in stock funds.

Old 401k (Hewitt): down 11.8%
Rollover IRA (Vanguard): down 11.78%
New 401k (Vanguard): up 133.97% (this is due to new contribution, I started new 401k in Nov 08, so there is an easy comparison here)

Noticed my portfolio balance in Vanguard is about even compared to the end of 2007, when I started the Rollover IRA. Consider this is after I made signigicant new 401k contribution since Nov 2008. So much for long term investing concept. I need to rethink how to better managing my retirement account.

S&P is down about 11.7% in this quarter.


S&P 500 10 years chart

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March 04 1999 to Mar 02 2009, courtesy of Google Finance.


Two thoughts pop up by looking at the charts:
1) We probably have not hit bottom yet;

2) The drop in mid 2008 till now is so sharp, 50% in one year 🙁

BTW, I think it’s a good idea to stay away from the market these days. Learn from the Oracle of Omaha.