Originally Posted by
Reese
Dude, terrible way to look at a stock market correction. Guess what, I feel GREAT about it. Just like in 2009, buying opportunity and the market is up CRAZY in the 10 years since, BEATING inflation.
id take 16% b fund cash over cap any day vice an A plan. And I’m at Fedex.
our A plan is down 17.2% over the last 10 years(inflation eating away at value)
the stock market after today is STILL up 167% over the same time period.
assuming an 80/20 portfolio, that’s ~134% gain, 13% annual gain, vs our A plan’s NEGATIVE 1.7% return.
as long as you didn’t freak out and sell low, your account regained its value in less than 3 years (and more if you kept investing)
167%? The market has been great the past few years with maybe 20% for a year but not 167% over 10 years. The A fund needs fixing but I'd rather have both. If you retired this year, your 401K just took a big hit just this month. And if the market takes a hit every few years on media panic and market speculation, you are going to have a hard time in retirement. A constant A fund payout is a huge advantage as a retiree with no way to make any extra money unless you get another job. And UPS just got a contract extension with an increase to their A fund. FedEx can do the same. There is no excuse for not increasing the A fund.