If I lose 1.5-2% a day in my 401k, how long will it take before I have no money left at all?

Question

Just curious - I started off with $83k but am down to $65k, even though I have matching contributions each month as well.

Thanks for the great economy!!

Answer 1

Yeah you will never get to zero mathematically. But you will get very close to it after about 200 days. Anyway, I think your portfolio has declined roughly in step with the market, about 20% so I would suggest you just ride it out, the market isnt going anywhere and if it does go to zero than your 401K will be the least of your problems so just ride it out and try not to even look at it.

Answer 2

66 days at the least. Hang in there. You will be sorry if you close your 401k with all of the penalties and then the market rallies again.

Answer 3

I agree with everyone else on this one. But consider this....

Taking a long-term view requires patience. Patience in the stock market can have its rewards. In spite of wars, depression, economic crises, political change, and environmental disasters during the preceding 80 years, the U.S. stock market has marched steadily upward. During almost any three-year given period, however, the market will have registered daily highs and lows that may have thrilled, or alarmed, investors at the time. There's a universally accepted rule that the longer you hold stock investments, the more likely you are to reap positive results. Historical returns show that there is a 74% chance of positive returns for a one-year investing period, 97% for a 10-year period, and 100% for a 20-year period.

Answer 4

Eternity. It never gets to 0, mathematically and theoretically speaking.

However, if we assume a daily loss of 1.75%, you would lose 90% of your money after 130 days, 99% after 260 days and 99.9% after 265 days. But well, you would lose all your money before that if you include fees.

And, oh, "you are welcome" said Ben.

Answer 5

you account has gone down that much in the last 2 weeks??? That's what you are saying in your statement/question. The whole market is only down 20% since the peak last Sept/Oct