401(k) Accounts Recovering Smoothly

If you took a look at your 401(k) at the depth of the most devastating financial downturn since the Great Depression, you might have been quite depressed to discover how much value your investments lost as a result of the stock market’s rapid decline. However, you may be surprised to learn that the average 401(k) account is up 7 percent in value from two years ago.

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This is because the stock market has rebounded very smoothly, with the Dow Jones industrial average rising above 10,000 recently. If you have a healthy mix of stocks and bonds and you continue to make contributions to your account, you may find that your savings are quite satisfactory. Even if your portfolio has decreased, the stock market still has plenty of room to grow until it reaches its 2007 levels.

Some analysts have gone on to say that the financial crisis’s effects on 401(k) accounts are fading and that many portfolios are the same as they were a year ago. However, results still remain every uneven, and even though some investors have recovered their portfolios, others still have substantial losses.