NOTE: Difference in loss from being in a 401k versus good stocks…
Say you had $300K in the TSP “S” fund (or 401K) in Sept 2018. By Christmas 2018, you had only $226K ( –24.7% ).
To get even, you needed a % gain greater than the % lost ( +32.9% ).
By FEB 2020, you had $325K ( +43.9% ). You may think you made $100K in 2019, but that’s because you didn’t track your lost from 2018…
By MAR 6 2020, you have only $277K ( –14.8% ). And are now down in the last 18 months…
The Good News… With 5% contributions of $100K salary & 4% Agency match from Sept 2018, you have your additional contribution ($7.6K) plus 96% of Agency match (a gain of $6K in 18 months). So, adjusted balance $283K ( –13.0% ).
MEANWHILE: despite no matching agency funds, if you had $300K in Microsoft stock in Sept 2018. You would now have $447K today (down from $522K in FEB). A gain of ( +32.9% ).
That’s why 401K aren’t that great in an economy with unregulated capitalism. By retirement, greed & inflation will kick your butt…
UPDATE: By Sept 7 2020, you have only $320K ( +7% ) in your TSP now (not much to show for the last 24 months)…
You would now have $585K ( +95% ) today ( in Microsoft stock )…