David's Mumblings
401(more)okFor the first time since I got my work 401k, the value of my account is greater than the amount of money I put in. Harrumph! While the U.S. stock market fell 37% last year, diversification helped many 401(k) investors cope. A balanced mix of 60% stocks and 40% bonds held up better, falling 22%.1 Diversification isn't exclusive to 401(k) investing, of course. But your plan makes it easy to hold a mix of stocks and bonds. The parenthetical remark is rather odd when you get past the marketese; it's basically saying: "You lost a lot of money, but if you kept putting money in while losing money, your balance didn’t decrease as much as if you hadn’t put in any money" So if you put even more money into your 401k just to see even more go away, you should still be happy because you prevented your 401k balance from decreasing as rapidly, and instead made your normal bank account not increase as rapidly. :-) ^ TOP
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