401k Maximizer, Inc. specializes in developing superior systems for managing retirement plans.

The first table shows 401k Maximizer Aggressive method model returns over the past 5 years compared to the S&P 500 and NASDAQ Composite Market indexes.


It’s important to consider risk along with reward whenever you approach the market.  Consequently, investors should carefully consider the draw downs or decreases in their portfolio along with the gains because after all its next to impossible to realize the gains if the roller coaster returns of your investments cause you to give up following a systematic approach to investing in the market.  The next table below shows the annualized returns of the Aggressive model portfolio over the past 5 years along with the maximum draw downs of the model portfolio and the major indexes.

Test Results – Annualized Returns/Max Drawdown: 5 Years



Finally, the chart below shows the difference in yearly gains and total gains of the 401k Maximizer Aggressive portfolio vs. the S&P 500 index over the past 5 years.  Clearly, it pays to upgrade your holding every month using 401k Maximizer.


Definition: Max Drawdown

Max Drawdown shows the peak value of any equity curve to the lowest value of that equity curve during the course of the time displayed. So for instance if an account started with $10,000 and grew to $100,000 and then had a drawdown of 28.3% the account value would fall to $71,700 before going on to exceed the peak equity value of $100,000 at some point in the future. So the Max Drawdown shows how wild the ride is going to be along the way and really gives you a good picture of whether a system is the type of system you can live with. Because all accounts go up and down over time it’s just that some equity curves are smoother than others. Another way of looking at it is when you run into that maximum drawdown in your account at some point in the future is that drawdown a number or dollar amount you can live with and stick with the system you're using. Because in order to finish the race you have to both cross through the valleys and climb the hills. Obviously, the lower the expected drawdowns the more likely you will be happy to stay with the system.

Notes: The information and data contained herein are compiled from the J.P. Morgan web site and other sources and are believed to be reliable, but accuracy cannot be guaranteed. 401k Maximizer disclaims any and all liability for losses that may be sustained as a result of using the data presented herein. Past performance is no assurance of future results. All investments involve risk. You should invest only after careful examination of fund prospectuses.

401k Maximizer, Inc. monitors fund performance and publishes a monthly newsletter. The goal of 401k Maximizer is to take the guess work out of the 401k choices and to help every employee manage his or her own 401k plan. The 401k Maximizer is a newsletter monitoring the 401k investment alternatives available to employees of American Airlines, American Eagle and other employees of AMR Corp. American Airlines is a registered trademark of the AMR Corp.