I just did the math on my meager 401k investments to see how I did in 2006. The answer: not bad, and better than 2005 by a lot. My annual return on capital came in at 15.97%, a very respectable return. The Nasdaq 100 gained only 6.93%. The S&P 500 came in at 15.85%, so I just squeaked past it. But the Dow Jones Industrial Average whupped me at 18.91% return.
On the other hand, if you count 401k company matching funds as gains rather than contributions, that would give me a return on investment of 38.75%. Now that's what I call a return! And since contributions are made with pre-tax dollars, only about two-thirds of the investment is mine, the rest is a loan from Uncle Sam. He'll get his in the end, though. He always does.
My play-money portfolio actually dropped a bit this year (Texas Instruments, you big slacker!), but has a 50% return over two years, so I'm not complaining. I figure it picks back up this year.
If only that decimal place were moved to the right a couple of digits, I'd be rolling in money. Oh well. Time compounds all accounts.
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