re: 401k rate of return question

I've only been in my 401k for around 3 years, so I don't have any first hand experience as far as longevity, but from what I've read, almost all funds will return 6%-9% over there lifetime. You will have years that you do a lot better than that (I had 16.7% this year) and you will have your bad years (last year for me).

When I started investing with with Merrill Lynch, they showed me their conservative, moderate, and aggressive fund rates of return. All were 6%-9%. Aggressive is just more volitile. When the years or good, it's 20%, when it's bad, you lose money. The trick is moving from aggressive to conservative at the right time in your life.