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Lobster_osity OP t1_iy4avry wrote

Reply to comment by french-fry-fingers in Started saving for retirement this year-- my "historical returns" YTD say -8.97%, why am I putting this money here instead of a high yield savings account? by Lobster_osity

Gotcha. So basically, stick with it because if you don't you'll miss returns (if/when the market turns around)?

Is that type of YTD loss normal?

I can afford the max yearly contribution, so I guess I'll keep doing that.

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apetnameddingbat t1_iy4bwut wrote

This type of YTD loss is nowhere near as bad as it can get, and yes, single calendar-year losses of 10-20% are normal over the long haul.

I lost half my retirement accounts' value in 2008 and 2009, but I kept contributing. From 2010 onward, the bull market rewarded me handsomely for staying in. I'm still far, far ahead of a HYSA over the same time period.

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Lobster_osity OP t1_iy4c604 wrote

Wow, interesting to hear from someone who stuck through the 2008-9 crash. Thank you!

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skystreak22 t1_iy4hkai wrote

^^ This top comment is basically all you need OP. It’s that simple. Not only will you miss the rebound, you’ll never be able to sell right at the top either, so you’ll sell and then miss gains a lot of the time. Set and forget for 40 years. If the negative number is getting you down, try looking at the number of shares you own - that number goes up faster if the market is down!

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french-fry-fingers t1_iy4gozv wrote

The market will turn around. Look at a max historical yearly return chart. It goes up with some (sometimes big) dips. "If" the market does not turn around we have bigger issues at hand, like a dystopian future on the short horizon.

Age or big purchases are also a factor though. If I were about to buy a house I'd pull out into cash because there's less time for a recovery before I buy. Or if I'm about to retire I'd move investments away from stocks /growth stocks and into something more conservative.

But that's just me.

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