Vanguard: 60 Percent of 401k Accounts Recovered (AP) | Financial News

December 02, 2009 By: Doctrader Category: Pension 401k

The market media matrix continues to spout their view that everyone should be invested all the time. The continuation of the “perma bull” lies, is only more evidence that “Joe six pack” doesn’t have a chance in understanding cyclical and secular market behavior. It should come as no surprise that a company, Vanguard, who manages “other people money” through their vast array of failed mutual fund managers, to say “happy days are here again.” Vanguard’s only concern is “IF you to take your money out of the market”! Vanguard gets paid to manage your money, why are you not holding them accountable for losing 55% or more of your hard earned 401k assets? As the article states, younger workers are still in a state of denial, regarding the severity of this market! The young workers believe that all is taken care of, simply by the government to declaring “Olly olly oxen free” to all the credit problems that are still present!

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DES MOINES, Iowa – Another major provider of 401(k) accounts says the typical retirement saver now has more money in their account than they did before the stock market began tumbling two years ago. The Vanguard Group Inc. said …

Younger workers with smaller balances caught up the quickest. Nine in 10 participants under age 25 were flat or were ahead of their balance two years ago. About eight in 10 workers in their mid-20s to mid-30s had recovered to 2007 levels. However, just half of the participants in their 50s and 60s have recovered or gained slightly while half have not. This was based on Vanguard’s selectively picking participant balances between September 2007 and September 2009. I want to know the total return of all their assets from 2000 to present! Given most 401k plans are for long term results, not just a short two year stint. The overall stock market is up just under 60%, while the markets are still down from their previous highs of 2007 by 25%! Since “Joe Six Pack” is not versed in the the way Wall Street uses numbers to lie, what will happen to the 60% gain “on paper” to his 401k plan when the market returns to new lows?

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