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401(K) recovery!!
- Thread starter kmckinnie
- Start date
TJay
Senior Member
I think for the short term we should see a nice little bounce when it's determined we have a handle on the pandemic crisis. After that we'll start assessing the damage to the economy and it won't be pretty. Maybe resulting in another downturn. I hope we resist the temptation to expand the government in response to this virus. There is also our relationship with China to consider. As economies tank especially in third world countries I would expect China will try and take advantage and increase their influence. Lot's of change coming. Might be a good idea to tiptoe in a little at a time than to rush in full bore.
B. White
Senior Member
I'm thankful for where it is today, considering all that is going on. 30%+ returns still there since 2017 to today. I think I am down 7-8% now year over year, but the last few have been good to me overall. I thought we would be in much worse shape at this point and have to wait longer for it to climb.
Twiggbuster
Senior Member
Since late April, I’ve regained about half of the losses I incurred in March. Much better than anticipated. I was a little late moving funds around but still helped mitigate some losses. Hoping with most states opening back up, we can start seeing gains across the board. Survival of the fittest in play big time.
Percentage is different in losing than gaining.
Example say you had ?10,000 and it went down 20% That leaves you with $8000.
Then that $8000 gains back 20% you only have $9600. It takes a 25% gain to return you to the same value before the 20% loss.
Example say you had ?10,000 and it went down 20% That leaves you with $8000.
Then that $8000 gains back 20% you only have $9600. It takes a 25% gain to return you to the same value before the 20% loss.
B. White
Senior Member
Yep, I'm only looking at my rate of return at historical points. Been there and done that with pay cuts % and what % it really took to get back where I started. Not the same.
Twiggbuster
Senior Member
I’m looking at total 401k amount.
I will judge how bad this has been as soon as I reach my total on 2/1/20.
Thinking somewhere near Trump’s re-election.
I will judge how bad this has been as soon as I reach my total on 2/1/20.
Thinking somewhere near Trump’s re-election.
I have 2 accounts one with American Funds and one with Vanguard. Both are invested conservatively in target date 2020 funds.
Both went down about 17% in early March. Both have recovered to being down around 3% now.
Both went down about 17% in early March. Both have recovered to being down around 3% now.
bullgator
Senior Member
We’ve already recovered about 60% of the market back which means most 401k’s have probably recovered 45-50%. With this being an election year and the CV19 still an issue, my guess is 1eyefishing has it right if Trump is elected, early next year. If the Dems win, 3 years just to get back to where we were.
brownhounds
Banned
My stocks are looking pretty good right now. They’re up to about 1000 lbs on the hoof and ready for the butcher. In all honesty, y’all remind me too much of Clark Howard. That guy wastes more money looking for cheap gas instead of just pulling in the 1st gas station.
Buford_Dawg
Senior Member
I was down 19% 2 months ago, now down 3.9% from my 1/1/20 statement. Hoping by YE, will be in the + category. Trump needs to win however.
LTZ25
Senior Member
Yes , but I'm in a low risk program and only down around 2 percent for the year , had dropped about 8 percent at one time .
I understand your thinking when you say you haven’t lost anything unless you sold low, (you can’t sell a 401K)
Calculate your net worth and include your 401K , as it should be included.
Now, If your 401K was $1,000,000 and with your house and stuff your net worth was $2,000,000
And your 401K went down by 50% , your net worth is now $1,500,000. So you lost $500,000 of net worth.
This is how I see it anyway.
Calculate your net worth and include your 401K , as it should be included.
Now, If your 401K was $1,000,000 and with your house and stuff your net worth was $2,000,000
And your 401K went down by 50% , your net worth is now $1,500,000. So you lost $500,000 of net worth.
This is how I see it anyway.
If someone trades equities within their account it is essentially selling and buying.
Example if you had shares of some aggressive stock that decreased in value and you moved funds to a stable or cash fund you sold enough of the aggressive funds to create the amount you moved to stable value. By selling those shares at the lower value you lost.
And you are completely correct. The loss is very real. Those who would argue otherwise are arguing from the standpoint of Income Taxes. If a stock which has declined in value is not sold there is an unrealized loss. If that same stock is sold there is a realized loss which is recognized for tax purposes. Losses that are unrealized are still very real. Should an ice storm take out $100,000 worth of my trees my loss will be very real but I will never have a realized or a recognized loss because I have no basis in them for tax purposes. I still will not be able to afford that new pick up that I have had my eye on though. That is a real loss.
With all that said, I think the come back will take about two years if Trump stays in office. If Biden goes into office there will be no way to guess.
As of today I am back to the pre covid #s
So I didn't sell anything and still haven't. I am almost entirely stock and mutual funds. I did buy some Delta as it was sliding but not at the low.
I am back over my #s on Feb 15, 2020 my high. So it took almost 5 months. We will see if it holds.
I lost 25+% at the low.
So I didn't sell anything and still haven't. I am almost entirely stock and mutual funds. I did buy some Delta as it was sliding but not at the low.
I am back over my #s on Feb 15, 2020 my high. So it took almost 5 months. We will see if it holds.
I lost 25+% at the low.
fishfryer
frying fish driveler
I made a new high yesterday,was down 30.4% from February.
sinclair1
Senior Member
I do it every election year. Win more than I lose. It saved me from huge losses during the housing crash.
B. White
Senior Member
I don't quite have a new high, but close enough to keep me happy. Feb. 20th was my all time high. My numbers now look like they did in January.
