In the third quarter of 2023, the AmericanTCS 401(k) benchmark returned -3.26%. The Benchmark closely aligns with a traditional 60/40 investment strategy. Although the 60/40 mix has historically performed well for investors, that strategy struggles when both equities and bonds decline in tandem as happened in the third quarter. Despite a challenging quarter, the benchmark has returned 6.68% YTD and 14.19% over the past year.
Because 401(k) participants are long-term investors it is important to take a step back and observe the hypothetical 401(k) participant’s journey over longer time periods. The AmericanTCS 401(k) Benchmark achieved a solid return of 5.01% over the last five-year period. This reaffirms the experts’ advice to 401(k) participants of the importance of staying the course even in the most turbulent of markets. History tells us that good markets often follow bad ones. To achieve long-term financial success and stability, 401(k) participants must maintain a committed approach to their 401(k) portfolio.
About the AmericanTCS 401(k) Benchmark
AmericanTCS is a leading financial services organization that provides a wide array of brokerage, advisory, and trust services to a diverse national client base of financial advisors and institutions, asset managers, and benefits administrators through its various affiliated companies. Because we provide these services, AmericanTCS has plan investment data on over 100,000 401(k) plans representing approximately $147 billion in assets. In response to requests from our institutional clients, we have created the AmericanTCS Composite Benchmark. Using data from plans serviced by AmericanTCS with assets of at least $100,000 at the beginning and ending of the month, the AmericanTCS 401(k) Composite Benchmark is designed to reflect the portfolio performance across 401(k) plans serviced, in any capacity, by AmericanTCS. See the “Methodology” section of this report for details on how the composite benchmark is calculated.