Investors who braved stock market fared better than others
Retirement savers who stuck with the unstable stock market throughout 2008 and 2009 have ended up faring much better than those who took their money out of equities in entirely. MarketWatch reports a Fidelity Investments study shows that investors who continued to contribute to their 401(k) saw a 64 percent growth in their account balance between October 2008 and June 2011.
Running counter to retirement savers who stuck with it through the volatile market, those who took their money out saw just a two percent jump in their account balances over the same period. According to the news source, those who jumped off but then back in struck a middle ground, averaging about 25 percent growth.
It also appears that most of the 7.1 million investors surveyed made the right decision, as only about 1.6 percent dropped their equities altogether.
"People either had one response or the other," Beth McHugh, vice president of market insights at Fidelity, told the news source. "Either, ‘I’m getting out [of equities] altogether,’ or, ‘I’m not going to add any more to the market; I’m taking my money elsewhere. A small subset did both - that was about 5,000 participants."
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