401K - Low Rate of Return

Amazon
MrRose

Go to company page Amazon

MrRose
May 5, 2021 18 Comments

Hi,

I am investing in target funds but have very low rate of return.

Current YTD Rate of Return - +8.04%

Company - Amazon
Platform - Fidelity

What % blend do you guys invest in?

#personalfinance #investments

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TOP 18 Comments
  • Intel
    zcLE73

    Go to company page Intel

    zcLE73
    Target funds are the worst.
    With high fees, they have the worst performance. Based on options in your company, look into large cap growth/blend or midcap growth or blend funds.
    Those should give you the best returns with relatively lower fees.
    May 5, 2021 1
  • Visa / IT
    VNUd08

    Go to company page Visa IT

    VNUd08
    What does the return %age look like?
    May 5, 2021 6
    • Google
      jEJj44

      Go to company page Google

      jEJj44
      You're not guaranteed to hit at least SP500 returns. If you have a mix of other investments, your returns will not match SP500. Target retirement funds are a mix of US and international stocks and bonds.
      May 5, 2021
    • Google
      co-CEO

      Go to company page Google

      co-CEO
      Then invest in a SPY fund. Target return funds (even low cost) lag SPY due to at least 10% bonds allocation (and bonds are a suckers game these days anyway). At the same time 100% SPY is quite aggressive, I'd rather put 20% in alternative investment classes.
      May 5, 2021
  • 8% YTD is a really good return already. You could look to diversify in international markets as well as midcap
    May 5, 2021 0
  • Amazon
    amz_tpm

    Go to company page Amazon

    amz_tpm
    8% return in 4 months is not that low. People are spoiled these days by the bull run of the market.
    May 5, 2021 0
  • Microsoft / Cust. Srv.
    BLOCC⛓️GOD

    Go to company page Microsoft Cust. Srv.

    BIO
    godlike
    BLOCC⛓️GOD
    I recommend funds like ETHE and GBTC boomer target funds are a waste of opportunity in today's climate, especially if you are young
    May 5, 2021 2