When markets are down, you don’t want to look at your 401(k) statement. But with a potential “lost decade” of stock returns looming, you have to at least take a peek, because it’s time to get real about your ability to afford retirement.
Economists often point to the fact that stock markets always eventually go up, but there are times where returns are down or flat. Those periods can last a while, even a decade, as they did from 2000 to 2013.
Your assumptions may be woefully inadequate if the numbers you used to figure out how much you’d eventually need are any older than six months. Even if it hurts, you need to jump online and run the numbers again using a calculator — or consult a financial professional.
