Summary: Typical U.S. Worker Saw 401(k) Lose 24.3% in 2008

According to a study by Employee Benefits Research Institute and the Investment Company Institute, U.S. workers suffered an average loss of 24.3% in their 401(k) accounts during 2008. At year end 2008, the average account held a balance of $86, 513, a decrease of nearly 25% from the previous year. The article explains that investment performance forced many to change locations of their assets. 56% of people were found to be stashing their assets in equities (funds and company stock), while 41% allocated their assets in fixed-income securities. One of the more eye opening statistics from the article was the fact that 72% of workers held 20% or less of their account balance within company stock, while 7% of all 401(k) investors held more than 80% of their account balances in company stock. A very risky action indeed.