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Bob & Charlie: A story of Successful 401k Management

Bob and Charlie hired into the same company on the same day earning the same salary. Both contributed $500 per month to their 401k plan.  Neither of them knew much about investing. Bob chose the default program that was offered as he believed he was a conservative investor and didn’t want to lose money. Charlie on the other hand chose a private money manager, like Sapphire Blue Investment Partners, that actively made adjustments to his investments. When they both retired on the same day, Bob looked at his account and was pleased to see that his 401k had blossomed to $246,363. Charlie on the other hand had over 1.1 million in his plan. Here’s the question, are you a Bob or a Charlie?

At Sapphire Blue Investment Partners, we have the tools to actively manage your 401k and the knowledge to make adjustments on an ongoing basis. If you have a 401k, a 403B, an annuity or a 529 educational plan that is not receiving the care and attention it deserves, it may be time to explore our Retirement by Design portfolio management system.

Bob’s valuation was calculated on $500 per month investment in the S&P 500 index. This is a gross calculation not including fees or expenses beginning January 1, 1992 with an ending date of December 31 of 2001. This was calculated from DQ why DJ calculator assuming $500 per month is invested on the first market day of each month the true total is calculated was $1,139,546.

Charlie’s valuation was calculated on $500 per month investment into a fixed income investment earning a return of 2% annual return compounded annually and invested on the first market day of each month. Calculations do not include fees or expenses beginning January 1, 1992 ending date December 31, 2021. Calculated from treasury direct utilizing no tax withholdings.

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