A **good rate** of **return** on a 401 (k) invested in stocks is 9-10%, but your starting time and how long you have been invested can change the results drastically – at least until you have invested for longer than 20 years. By then, and especially after 30 years, returns tend to converge on a narrower range.

The average **rate** of **return** for a 60-month CD at the beginning of April 2019 was 1.27%, according to the Federal Deposit Insurance Corporation. …

## What is a Good Rate of Return on a 401(k): Understanding the …

What is a good 401(k) rate of return? The average 401(k) rate of return ranges from 5% to 8% per year for a portfolio that’s 60% invested in …

## People Also Ask what is a good rate of return on a 401k

## What is a good 401 (k) rate of return?

What is a good 401 (k) rate of return? The average 401 (k) rate of return ranges from 5% to 8% per year for a portfolio that’s 60% invested in stocks and 40% invested in bonds. Of course, this is just an average that financial planners suggest using to estimate returns.

## How can I predict the rate of return on my 401 (k)?

It is not possible to predict your rate of return within your 401 (k), but you can use the basics of asset allocation and risk tolerance, in conjunction with your time horizon, to create a portfolio to help you reach your retirement goals. Also, look carefully at the fees different choices entail.

## Does your 401 (k) rate of return depend on the stock market?

Your 401 (k) rate of return doesn’t depend only on the stock market. Your investment choices have a huge impact on what you earn. Robin Hartill is a Florida-based personal finance writer and editor, and a CERTIFIED FINANCIAL PLANNER.™ She is a graduate of the University of Florida. A 401 (k) plan can be invaluable in saving for retirement.

## What is the best type of 401 (k) plan for You?

The average 401 (k) plan offers eight to 12 investment options, and mutual funds are by far the most common. Many are index funds, which means your returns will mirror an underlying benchmark index, like the S&P 500, though your earnings will lag slightly due to fees.