Posted on 06/15/2023 11:27:48 AM PDT by ChicagoConservative27
A new report released by Vanguard shows the average account balance in retirement contribution plans dropped by 20 percent from 2021 to 2022.
Vanguard’s report found that the average account balance for its defined contribution plans was $112,572 in 2022, down nearly $30,000 from the average in 2021. The report noted that 1 in 3 account holders had a balance of less than $10,000, about 25 percent had a balance of more than $100,000 and 12 percent had a balance of $250,000 or more. The report attributed the drop in average balances to “market performance and an evolving participant base.” The median account balance dropped by 8 percent among those who had an account in December 2021 and December 2022.
(Excerpt) Read more at thehill.com ...
When you smell a bear, get out of stocks.
Thanks Joey.
That is face value. Factor in inflation and it is more like 60K.
Mine also took a hit. Last year, especially. In fact, I lost $30,000.
And the dollars in 2022 were worth about 8% less than the dollars in 2021...that should be computed in the estimate.
Is that all?!
Thank God for dividends
“Mine also took a hit. Last year, especially. In fact, I lost $30,000.”
$20K plus loss for me, inflation has not helped. Dividends have helped a little. Lost a small part time job and had to raid one account for $12K to pay off a car since that job made the car payment plus a few other things.
My 1 year rate of return is -8%. My three year rate of return is +13%. Even that last part is dismal compared to the Trump years. But what you say is most true. Compare your investment growth to it’s value versus inflation and your standard of living number decreases.
I’m curious how it’s calculated. If I go from (say) $500,000 in 2021 to $550,000 in 2023, that’s a 10% gain. But if inflation through that period has gone up 22%, then technically I lost money....no?
Today my IRAs are at -.09% since I retired on march 11 2021.
When did the individual becomes so incapable of managing his own funds? We do. No "managed" funds whatsoever. No HOAs and similar things. No Coops. Minimum control, i.e. county taxes and such, but NO control over our funds or REAL real estate by a "manager."
I wish my balance was down 30K. LOL.
Did they track each account or the average of all accounts? Was any of this caused by job shuffling and people cashing in or transferring their 401ks to IRAs?
My managed retirement account is almost dead flat since Jan 21, but I am a good $50,000 off my high value for that period.
No one know what the future brings particularly given government mismanagement but I think one still has a shot if they invest long term. Of course that assumes one invests a decent amount into savings each month and leaves it alone. That is usually the hardest part - saving the money in the first place.
The historical average yearly return of the S&P 500 is 10.05% over the last 20 years, as of the end of April 2023. This assumes dividends are reinvested.
S&P 500 annual returns
2023 13.88%
2022 -19.44%
2021 26.89%
2020 16.26%
2019 28.88%
2018 -6.24%
2017 19.42%
2016 9.54%
2015 11.39%
2014 11.39%
2013 29.60%
2012 13.41%
2011 0.00%
2010 12.78%
2009 23.45%
2008 -38.49%
2007 3.53%
2006 13.62%
2005 3.00%
2004 8.99%
2003 26.38%
2002 -23.37%
2001 -13.04%
2000 -10.14%
1999 19.53%
1998 26.67%
1997 31.01%
1996 20.26%
1995 34.11%
1994 -1.54%
I wish my savings were only down $30K.
“To place money in a “managed” fund is to sign up to pay a manager and his expenses. “
I have one managed fund. Top holdings are AAPL, MSFT, AMZN, GOOG, NVDA, BRK.
I don’t mind the 0.74% fee.
I moved mine to “cash heavy” at the start of Covid. I’ve been rebalancing but as I approach “retirement age” it’s going to be fairly conservative. It doesn’t have to grow 15% a year.
Vanguard is leading proponent of DEI crap. Dump them for an FDIC insured IRA CD.
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