We strive to remain optimistic during rough economic times, as investment and financial well-being can be stressful, even in good times. And, as we often point out, riding the ups and downs of the markets with an intelligent investment strategy is essential. But during rough patches, such as the bleak investment year of 2022, it’s easy for people to look at their portfolios and think, “That was not a good year for my investments. Am I doing something wrong?” No, you are probably not doing anything wrong.
Average retirement account balances in the U.S. were down about 20% at the end of 2022
|
Q4 2022 |
Q4 2021 |
% change |
|
|
Average 401(K) |
$103,900 $103,900 |
$135,600 $135,600 |
−23% |
|
Average IRA |
$104,000 $104,000 |
$130,700 $130,700 |
−20% |
|
Average 403(B) |
$92,683 $92,683 |
$115,100 $115,100 |
−19% |
Table: Fidelity
Does knowing all this help the value of your portfolio? Of course not. But it does help put things in perspective. Hopefully, it calms your mind and reminds you that nobody is immune to the short-term volatility of the markets. A rough 2022 was preceded by several booming years, which were preceded by a few rough years. Turn the page on 2022. You took some hits to your portfolio, not to mention your ego. Everybody did. But the storm was weathered, and now is the time to look forward with optimism. We’re there for you in 2023 and beyond.
Multnomah Group is a registered investment adviser, registered with the Securities and Exchange Commission. Any information contained herein or on Multnomah Group’s website is provided for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Multnomah Group does not provide legal or tax advice. Any views expressed herein are those of the author(s) and not necessarily those of Multnomah Group or Multnomah Group’s clients.