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Category Archives: 401k

Proof That Buy and Hold Still Makes Sense

After the shock and hit from “The Great Recession”, everybody and their cousins came out and said that the “buy and hold” strategy doesn’t work and the days of 9 to 10% annual returns were over.

So, I decided to come to the defense of the buy and hold strategy once again.  Back in one of my earlier articles called, “Is Buy And Hold Investing Dead“, I stated that I was basically going to stay the course and not deviate much from that philosophy.  As a result, I’m happy to say that my Annualized Return is above 9% again (9.3% to be exact).  While this number is not quite as great as if it were 10% or slightly higher, I’m still pretty satisfied that it has jumped back up to a normal level.

It’s true, Warren Buffett is definitely not quaking in his boots (I this he averages over 20% annualized), my 401k return is still a decent enough to be satisfied with it.  In other articles I mentioned that I wanted to rebalance my portfolio more, but alas I haven’t…

So the chart below is pretty much a Buy and Hold strategy, along with the added benefit of a dollar cost averaging element in place too.  While the bull market has been running for quite a while now, I still feel confident enough to say that the basics of a buy and hold strategy has worked well enough for me personally.

BuyAndHold2014

Not much more to say, the picture above says it all up to this point.  Tomorrow, who knows…

Thanks,

Don

My Portfolio Checkup Challenge – Portfolio Fee Creep

This past weekend, the blogger Joe at Retireby40 posted an article called: My Overdue Portfolio Checkup, and in the article he states that upon checking out his portfolio fees, they totaled $1,754.91 per year.  (Read his article for a great breakdown on his Portfolio Fee Creep, it’s a great read)! Coincidentally, earlier in the same week,… Continue Reading

Is Buy And Hold Investing Dead?

  On TV and other channels of financial communications, I keep hearing that the “Buy and Hold” strategy is dead or no longer works, but I beg to differ! The chart above is my 401k balance over the past 8+ years, and as you can tell, my overall balance has almost doubled (97.6 %)!  Now… Continue Reading

401K Account Balance Recovery

Well, it took a long time, but my 401K decline in my portfolio value has finally broken even from my 401K balance highs back in 2008.  Today is officially Valentine’s Day as I write this, so it’ll be easy for me to remember!  I guess my account is telling me “Happy Valentine’s Day” (lol). Here… Continue Reading