I'm looking at my 401(k) and I see that my year-to-date personal rate of return is 6.20%. I am currently contributing 6% of my base salary (payroll will only deduct from the first 40 hours I work) with a company match of 75%. I'm maxing the company match.
Is 6.20% a good rate of return?
Also, does rate of return change with the amount I contribute? For example, if I up the contribution to 7% would I see an increase in the rate of return (a partial percentage point or so), or just an increase in the net return? I will be getting a substantial raise in October at which point I am planning to increase my contribution percentage. I have about 30 years left before retirement the way I'm planning it now.
Thanks in advance!
Is 6.20% a good rate of return?
Also, does rate of return change with the amount I contribute? For example, if I up the contribution to 7% would I see an increase in the rate of return (a partial percentage point or so), or just an increase in the net return? I will be getting a substantial raise in October at which point I am planning to increase my contribution percentage. I have about 30 years left before retirement the way I'm planning it now.
Thanks in advance!