- In This Article
- Overview
- How long will it take?
- Why an IRA might make sense this year
- View all product recouping your losses
How long will it take to recoup my losses?
Last reviewed: March 2009
Regular contributions to your 401(k) boost your chances of recouping losses. Say your holdings dropped from $300,000 to $200,000. If you put in $16,500 a year (the maximum for people under age 50), and increase that by 3 percent annually, your funds would recover in about 3 years at an 8 percent annual growth rate—the 70-year average for stocks. If you contribute less, or earn less on your investments, it'll take longer.
| $16,500 annual contribution | |
|---|---|
| Annual growth rate | Years to recover |
| 8% | 3 |
| 4% | 5 |
| 1% | 7 |
| $8,000 annual contribution | |
| Annual growth rate | Years to recover |
| 8% | 5 |
| 4% | 8 |
| 1% | 18 |
This article appeared in the April 2009 issue of Consumer Reports Money Adviser.
