From
Your Perspective:
Managing your 401(k) portfolio
Tracking 401(k)
performance
How can you tell how well your
401(k)
is performing?
Most 401(k) plan providers will send you account statements periodically,
updating you on your account’s current status. And, in some
cases, you may be able to access account information online or
over the phone.
You can track your
asset
allocation
in your 401(k) by using these statements. Each
statement reports the percentage of your total contribution that
goes into each investment. You can estimate whether the actual
value of your investments is in line with the allocation you’ve
chosen by dividing the current value of each investment class
by the total value of your account.
When you’re tracking your investments you should obviously keep an eye out for investments that are performing below your expectations. But you should also keep tabs on investments that are doing better than you expected. Fluctuations in either direction can throw off the balance of your portfolio and your original asset allocation, leaving you more at risk in the next market downturn.
