Economist: It Could Take a Decade for 401(k)'s to Recover

Mark Zandi says to expect a return on investment of just 5 percent instead of the old 8 percent.

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By Paul Bedard, Washington Whispers

Moody's Chief Economist Mark Zandi has more bad news on 401(k)'s, halved or worse in the recession. It could take a decade to return to last October's levels, he says. Worse: Zandi is warning investors to expect a return on investments of just 5 percent from now on, down from the old 8 percent guideline. But he does suggest two growth areas: healthcare, because of the aging baby boomers, and education, because of the 20-somethings.

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