Possible Tactical Error

I had to do the annual benefits enrollment today.  Unfortunately, the same system that we use to manage our benefits is also used to manage our 401K and retirement/pension accounts.  I made the mistake of taking a peek at my 401K. 

They give you a nice little summary that includes your YTD personal rate of return.  It was pretty ugly:

Personal Rate of Return from 01/01/2008 to 11/18/2008 is -36.5%

I think I may dig a hole and crawl into it for about a year….


  1. Kevin White says:

    Yup, it’s ugly. Should be a little better now, since we’ve had about a 12% jump Friday and Monday. Biggest mistake now would be selling (to cash or bond funds), however. Just let it ride and it will come roaring back eventually.

  2. Yep.  It’s not a real loss until I sell some of it (or reallocate, since my 401K is set up to invest in several different funds, rather than individual stocks).  I am also thinking that my current contributions will be even more effective in the future, since I can buy more fund shares with the same money.  So when everything eventually comes back, I’ll be better off.

    So, unless something drastic happens, I’m just going to let it ride.