bogleblitz wrote:Still no clue what to buy in 401k, i randomly picked Fidelity contrafunds, small caps, internationals and contribute 10%. I did not login and look at my 401k for the next 7 years because I had no confidence or no knowledge about it. I login this year to see how much I accumulated and notice I finally saved something. My overall gain seems to be 0% though. I think I did not lose or gain any money from my 401k for the past 7 years.
I don't understand this, and I think you should consider digging out your old statements or asking them to retrieve them for you and figure out what's going on. Actually, I would call whatever phone number you have for Fidelity's 401(k) retirement services and say "I would like help in figuring out what my personal rate of return on my 401(k) was for the last seven years," and stick with it until you understand.
I think you probably goofed somewhere on your math. Did you use the actual total numbers from your account balance?
7 years ago would be around the end of 2005. You don't say exactly which funds you invested in, but:
$10,000 invested in Fidelity Contrafund (FCNTX) then would be $14,594 today
$10,000 invested in Fidelity Small Cap Stock (FSLCX) would be $13,065 today
$10,000 invested in Fidelity Diversified International (FDIVX) then would be $11,522
In other words, all three of those funds
made money over the last seven years.
A portfolio of equal amounts of each, just left to sit without rebalancing, would have grown $30,000 to $39,181 which works out to an average of 3.9% per year, which is not what you hope for from stocks but not terrible and certainly not zero.
Furthermore, if you were making regular contributions over that whole time, during the awful crash of 2008-2009 you would have been buying at low prices and you should have done quite
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.