Thursday, December 15, 2011

What is the average interest rate earned over the life of a 401k?

I was just wondering what the average annual interest rate for a 401k account is over 30 years. maybe a high for someone who invested very wisely. and a low for someone who didn't do as good.|||Average over the long haul is about 8%.


If the economy does badly especially when


you start taking money out, you may end


up with about 2-3%. If the economy does


well ,you can make 10% or more.


Look into a ROTH 401K.|||The dow has been up 1,076% since 1980


Take away inflation


About 8% a year?


Disclaimer - I am not a mathmatician.


/|||No limit on the high for someone who invested very well and was lucky. Lower limit is losing it all if the person invested VERY poorly.





Historical average in relatively recent times, excluding the last couple years, has been around 8% for stock investments. You ask about interest - if your money is in fixed rate issues, return would be lower - historically maybe 5%, right now maybe 1%..

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