Answer (1 of 2): A good personal rate of return on a 401k is the same as for a Roth IRA except with no compounding taxes. I bought the S&P for 36 years and my first IRA grew 50 fold. And my defered taxes to18k for $400 deferred. Look how the S&P grows over time. S&P 500 Return Calculator, with…
Even seemingly small fees can have a big impact. For example, suppose you invested $5,000 annually in your 401 (k) and earned 7% average annual returns. Paying a 0.5% …
What Rate of Return Should I Expect on My 401(k)?
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This shows how the 10%, 18%, and 5% personal rates of return can be calculated using Excel. xirr in excel. One way to think about personal rate of return is to imagine a bank giving that rate of return as interest. If you made deposits and withdrawals in exactly the same amounts and on exactly the same dates into such a bank account as you did …
People Also Ask what is a good personal rate of return on 401k
What is the average return rate for a 401k?
The average 401 (k) return in 2020 was 15.1%, according to Vanguard data.Over the past three years, the average return was 9.7%, and 11% over the past five years.To grow your account, get the full match, make sure your account is invested, and save more.Read more Personal Finance Insider coverage »
What is a good return on investment for 401k?
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What’s the average 401(k) balance by age?
Ages 50-59. Average 401(k) balance: $174,100 . Median 401(k) balance: $60,900 . This group has hit the age at which catch-up contributions are allowed by the IRS: Participants age 50 and older can contribute an extra $6,000 a year in 2019. Jan 3 2020
How do you calculate 401k interest?
value of your monthly contributions. This can be achieved simply by entering your beginning balance, an aggregated estimate for all contributions (yours, employer match, catch-up), an estimate for return on investment, and the number of years until retirement, then click the “Calculate” button.