My overall investments have not beaten the index, nor are they designed to. I have a 60/40 split – 60% index funds equity. 60% in fixed income – a combo of government bonds, corporate bonds, and a cash position that is mostly in CDs.
It won’t go up as much as the market, but it won’t go down as much, either. The fixed income provides some dampening. My positions in international index and in small cap provide some extra growth potential along with risk.
I am a TERRIBLE stock picker and an even worse market timer. So set and forget with index funds works for me.
I’m curious how you calculate your growth on your 401k? I assume you’re making contributions through the year, so how do you subtract that out? Or do you consider your overall growth – including contributions? Going forward I’ll be able to cleanly see my returns, since my 401k/IRAs are off the table for use for many years.
